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IMAX Case (Strategic Management)

IMAX began with a focused-differentiation strategy making documentary and educational films displayed in its large format theaters. It then shifted to a broader differentiation strategy, expanding its theater network and film offerings. This allowed IMAX to differentiate itself through a superior experience of large format films for mainstream audiences. However, such a strategy shift also carried risks in terms of increased costs and competition in appealing to a broader market.

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Nga Nam Ho
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24 views

IMAX Case (Strategic Management)

IMAX began with a focused-differentiation strategy making documentary and educational films displayed in its large format theaters. It then shifted to a broader differentiation strategy, expanding its theater network and film offerings. This allowed IMAX to differentiate itself through a superior experience of large format films for mainstream audiences. However, such a strategy shift also carried risks in terms of increased costs and competition in appealing to a broader market.

Uploaded by

Nga Nam Ho
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Case Discussion:

IMAX: Larger than life

CB4303: Lecture Week 7

Chya-Yi Liaw, Emily


Department of Management
City University of Hong Kong
Business-Level Strategy

• A strategy designed for a firm, or a division of


a firm, that competes within a single product
market to achieve competitive advantage

2
Three Business-Level Strategies
Source of Competitive Advantage
Superior value perceived
Low cost by customer
Competitive Scope

Broad
(Industry Cost Leadership Differentiation
wide)

Narrow
(Market Focused- Focused-
segment) Cost Leadership Differentiation

3
Case
Motion Picture Industry

5
IMAX’s Business-Level Strategy

• Shift in business-level strategy


• Started at a Focus-Differentiation strategy
• Making / displaying documentary & educational
films

6
Three Business-Level Strategies
Source of Competitive Advantage
Superior value perceived
Low cost by customer
Competitive Scope

Broad
(Industry Cost Leadership Differentiation
wide)

Narrow
(Market Focused- Focused-
segment) Cost Leadership Differentiation

7
Focus-Differentiation Strategy

• Defining the strategy


• Focus:

• Differentiation:

• What resources are needed for such strategy:

8
IMAX’s Business-Level Strategy
(cont’d)
• Moving to a Differentiation strategy
• How:
• Expand its theater (equipment) network
• Expand its film offering

9
Three Business-Level Strategies
Source of Competitive Advantage
Superior value perceived
Low cost by customer
Competitive Scope

Broad
(Industry Cost Leadership Differentiation
wide)

Narrow
(Market Focused- Focused-
segment) Cost Leadership Differentiation

10
Differentiation Strategy

• Defining the strategy


• Differentiation:

• What resources are needed for such strategy:

11
IMAX’s Strategy Shift

• From Focus-Differentiation to Differentiation


• Benefits of the strategy shift?

12
IMAX’s Strategy Shift (cont’d)

• From Focus-Differentiation to Differentiation


• Risks with the strategy shift?

13

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