Imax Competitive Analysis
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IMAX is best at leveraging its reputation in unique film creation as well as investment worthy technical innovations with large format screens to differentiate themselves from competitors. Their core competencies reflect their distinctive brand image within the movie and entertainment industry and have created value for the premium seeking moviegoer who desires premium-viewing experiences. Whether it an educational film or a Blockbuster hit, the experience of an IMAX film is so unique to the audience that it is difficult to replicate and holds another competitive advantage through specialization.
IMAX has innovatively developed cost cutting techniques by leveraging their core competencies in order to achieve a sustainable competitive advantage. IMAXs in-house development team has proven to be experts in technology advancements with patented innovations such as DMR and 3D integration. This has not only opened doors to new target audiences, but has allowed IMAX to form alliances with filmmakers, production studios, and theater companies. The business is able to benefit from their alliances with cost savings with the following; box office revenues for holding distribution rights, they can manage their budget effectively without high costs paid to actors, alliances eliminate the costs for IMAX to market and advertise films, and IMAX films are able to continuously re-release formatted films at lower costs rather than creating a whole new production from scratch.
All in all, IMAXs effective new product differentiation combined with strategic cost-cutting techniques is what helps this company stay afloat.