Essay about Imax Case Study

5592 Words Jun 22nd, 2013 23 Pages
IMAX Case Study

Malika Drumgoole
Frank Thomas
Rondell Rush
Donte Rucker
Amadou Berete
Deshantelle Rogers

Seminar: Issues in Management
Instructor: Dr. Yao
October 14, 2011

Abstract IMAX is in a dilemma as to whether it should be sold to other giants such as Sony, Disney or Time-Warner. The general environment of the movie industry is discussed. Porter’s five forces model is used to help identify the opportunities and threats for IMAX. An explanation of how the resources, capabilities, and core competencies support both business and corporate strategies follow the model. A reason for the company changing its business and corporate strategies and if it can survive as a niche player that only produces large
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There have been efforts to organize and lobby political actions to do away with these concerns in the industry. If there is success to doing this, then there might be a new law to regulate the industry. Movie producers and movie theaters would suffer in the long run. The article talks about the changes in the movie production and exhibition that has happened since the Studio Era. The U.S. Supreme Court’s 1948 antitrust ruling forced Hollywood film producers to sell theater chains that they owned. The antitrust rule that was forced set a standard stating that film producers could not own theater chains. IMAX doesn’t violate this, because they are in the production and distribution industries. Piracy is also a major part of the political segment. The article states that “the US film industry lost more than $3 billion annually because of piracy” (Nair, 2009, p.9). Ever since the 1982 amendment of The Copyright Act of 1976, piracy has been taken very seriously. Violating this law can be considered a serious felon, because violators can be subject to federal criminal charges and civil lawsuits.
Economic Factors
The case talks about how the United States has the highest per capita rate for people who attend the movies. The case also states that the owners of the movie theaters use commercials before they finally show the movie in order to try and generate more

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