STRATEGIC ANALYSIS

Strategic Analysis of IMAX

Task 1: (1200 words; 40% weighting)

IMAX: Larger Than Life

External Business and Economic Environment

PEST Analysis

In order to operate successfully, an organization needs to be aware of the factors that surround it.

To know about the factors surrounding an organization, it needs to do a PEST analysis. A PEST analysis tells the organization about the Political, Economical, Social and Technological factors that are surrounding it.

Political Factors

IMAX influenced politicians and the family markets through not using the vulgar or extreme language or scenes while still keeping the movies interesting and through giving the audience a facility for enjoyment and entertainment, which overall will make the families and the local population of the states happy, thus contributing positively towards the society which will be beneficial both politically and for the families as well.

The political factors in IMAX also relate the production of such movies that do not in any way hurt or damages the reputation of the company or the country, or that contribute towards the promotion of negativity in the country and also that the movies that are produced are in alignment with the rules and regulations of the movie board that examines the movie before their launch (Nair, 2011, pp.1 - 7).

As the case study shows that IMAX focused towards the promotion or towards the making of such educational or informative movies that proved to be informational for the crowd and that adds to the benefits or the knowledge of the society. As this was not enough to produce enough revenues for the company, therefore the company also started to produce movies with respect to Hollywood, this contributed towards the revenues of the company greatly while the company focused on a strategy in the Hollywood movies as well which could be aligned with the initial strategy of the company of providing knowledge to the audience.

The strategy chosen by the company was of focusing on giving the customers an experience through the Hollywood based movies being created by IMAX. This contributed towards the increase in share and revenues while also meeting a political aspect of contributing towards the country through the providence of movies with experience and entertainment for the crowd.

Economical Factors

The economical factors of the IMAX include the varying different classes of its customers, as almost everyone from all the classes based upon economic conditions of individuals are interested in the movies of IMAX. Thus, it is difficult to target any particular target market based upon the economical conditions, can be targeted specifically. This in turn places a challenge for IMAX in order to satisfy the needs of each and every targeted market that falls under its potential market or existing market circle.

The prices for the movies are thus kept as affordable as much is needed to keep attracting the crowd from all walks of life and is thus not just targeted on any single group belonging to any one economic condition.

Social Factors

The social factors relating to the company are the concerns of age of its customers that ...