IMAX: Expansion BRIC Economies 16 16 unread replies. 16 16 replies. What competi
ID: 389934 • Letter: I
Question
IMAX: Expansion BRIC Economies 16 16 unread replies. 16 16 replies. What competitive advantages underlie the success of IMAX? Are these sustainable? What motivates IMAX to expand internationally into emerging economies, such as the BRIC countries? How would you evaluate IMAX’s international expansion to date? If 400 of the remaining 1,550 screens are to be allocated to the BRIC economies, how would you distribute them by country? Within each country, how would you distribute them among cities? Identify key business risks in international expansion to the BRIC economies. How should IMAX address these business risks?
Explanation / Answer
IMAX
IMAX is a Canadian-based company synonymous with large-format, high-quality cinematic experiences. Most of it's revenue comes from provideing technologies to mainstream movie studios and multiplex exhibitors.
Competitive advantages underlie the success of IMAX
Things motivated IMAX to expand internationally
The main thing motivated the chief executive officer of the IMAX is by focussing on BRIC economies and other countries market where the technology is usually a less in kind then the chances to emerge as a Billion Dollar company are so much higher.
Evalaution of IMAX’s international expansion to date
IMAX has more than 900 cinema screens in 58 countries and half of them are located in North America. It's now cosidering to add 1200 more screens outside of North America in which one third is planned to expand in BRIC (Brazil, Russia, India and China) countries.
If 400 screens are to be allocated to BRIC countries, then other than China we have to focus on Brazil, India and Russia wherein China had already suffocated with huge screens alloted by IMAX and it has more than 157 screens now and counting. So by distributing them in metropolitan areas of the countries there are chances to get more profit.
Key business risks in international expansion to the BRIC economies
Addressing of IMAX's business risks