IMAX Report Essay Example | Topics and Well Written Essays - 2000 words

IMAX Report - Essay Example These two people to help address the need for the business expansion of the company helped in making the company public so as to draw huge funds from outside. The two new owners to help address the need for market expansion of the company took resort to different strategies like changing the ambience of the IMAX theatres to be like that of the multiplexes and presenting films which would be different from the standardised ones. This strategy caught the attention of a niche crowd who were found visiting such theatres frequently. IMAX helped in developing the concept of showing cinemas in halls which would be in-built in buildings containing auditoriums, museums and other such public arenas. Herein the issue of dip in market capitalisation figures from $196 million during 1994 to $125 million during 2008 came out to be a matter of serious concern for the owners. The company apart from earning revenues from filming movies also created a revenue channel based on leasing of movie equipmen ts and other distribution activities (IVEY, 2009, p.1-3). Analysis of the Environment The analysis of the external environment of IMAX is conducted based on strategic tools like PESTEL, Porter’s Five Forces Model and also the understanding of the life cycle of the film industry in United States. PESTEL Analysis The PESTEL Analysis would help reveal the external environment of IMAX based on the region of United States and would focus on political, economical, social, technological, environmental and legal aspects. Political Factors The film industry of United States depicts an internal political climate wherein several film producers like Walt Disney, Pixar, Warner Bros. and others are found to have created a lobby for them thus obstructing the entry of new firms. Further the Motion Picture Export Association (MPEA) in United States is found to render controlling measures upon the several factors pertaining to price levels and other distribution activities of the films pro duced by the industry to other foreign markets. This body also supports the lobbying activities of the film producing companies in United States (Wasko, 2003, p.180-181). Economic Factors The region of United States reflected a growing market for the growth of films. Thus during the period of 2007 around 603 films were found to be released which countered a huge revenue growth of around $9.6 billion. However the prices of the films demanded a standardisation to help attract larger number of viewers to the hall and thus took resort to large volumes of commercial advertising (IVEY, 2009, p.10-11). Social Factors Several social factors in the region of United States also impacted the type of cinemas which would be shown to the general public. It is found that the cinemas were considered in the American society as a medium for educating and entertaining children. Thus cinemas are increasingly being considered as the mediums for developing the American knowledge base. Further the existen ce of Latin American base is also found to largely impact the production of films in the region (IVEY, 2009, p.10; Sutherland and Feltey, 2009, p.102-103). Technological Factors Development of cinema technology in United States using high definition features in DVD recorders and the extensive use of internet and other camcorders to distribute the cinemas