As is stated in the article, the company used to have a major competitive advantage in terms of movie selection, where, “…customers could browse through thousands of titles…” (Hitt 106). Now, the entire scope of the market has changed and Blockbuster was much too slow to respond. The recent moves that it has made will surely generate profits, but not enough to sustain the company in the long run, seeing as there is nothing that differentiates Blockbuster’s services from that of its competitors. In order to fully gain lost market share back, the company would have to create some sort of highly innovative way of viewing or renting movies that none of its competitors has already thought of; It would have to be something that is rare, difficult to imitate, not easily substituted, and able to generate above-average returns. Unfortunately, at this point it looks as if none of this will come into fruition because Blockbuster has essentially decided to latch on to other companies, creating a sort of symbiotic relationship where the company feeds off of the success of its competitors.
IMAX is a brand so they don’t have to pay the same kind of talent that Hollywood has to pay which is really a high percentage of the costs. IMAX films are often educational and entertaining and involve documentaries of natural and scientific wonders. The weaknesses for IMAX include expensive production, it is smaller compare to Hollywood studio, and long term debt. Because of its larger size, printing and distributing, IMAX films are costlier than 35 mm films. IMAX films faced competition from other films produced by studio such as Pixar/Disney that are targeted for families.
Viacom is leader in entertainment media operating in cable and other pay television services industry as well as in motion picture and video tape production industry. It comprises many popular TV networks as MTV, BET, Comedy Central and may other, also on the film production- Paramount Pictures. Viacom's content reaches over 520 million households worldwide in over 160 countries and territories. Problem: The main problem is increase portion of digital media, which allow access entertainment in new ways and greater speed, that therefore decrease the portion and revenues of film and media market, more worth is makes using piracy content. To analyze company I will use SWOT analysis to analyze internal (strengths & weaknesses) and external (opportunities & threats) environments: Strengths * Strong brand recognition- allready 578 million viewers across 162countries.
Photographic Equipment and Supplies 8. Motion Picture and Video Tape Production 9. Motion Picture and Video Distribution 2007: 5% of sales revenues spent in R&D. 2008: Conversion to the difital format * Substantial upfront Investment * But expected reduction of operational costs Brand image: IMAX produces produces several types of movies. The documentary segment was the most significant. The brand image of the company made
| | |IMAX Case Study | | | | | | | | | | | Table of Contents Table of Contents 1 Introduction ………………………………………………………………………………..2 The Macro Environment 3 Political Environment 3 Economic Environment 3 Social-Cultural Environment 4 Technological Environment …….. ……………………………………………………. 4 Five Forces Analysis 5 Threat of New Entrants ………………………………………………………………….5 Threat of Rivalry ……………………………………………………………………… 5 Threat of Substitutes …………………………………………………………………….5 Threat of Buyers …………………………………………………………………………6 Threat of Suppliers..…………………………………………………………………… 6 Company Conditional Analysis 6 Marketing ………………………………………………………………………………..6 Finance …………………………………………………………………………………..8 Ratios …………………………………………………………………………………. 9 Balance Sheet ………………………………………………………………………….9 Sources 11 Introduction IMAX Corporation is one of the world’s leading entertainment technology companies, specializing in digital and film-based motion picture technologies and large-format two-dimensional (“2D”) and
The key driving factor regarding Disney is the economy. However, because the company is so diversified, certain segments do worse than others in hard times, and others are able to hold their own. On the movie side, the purchases of Pixar and Marvel Studios really drive company revenues. These two premium studios execute flawlessly — none of their films have ever lost money and, in fact, recently have been outrageously
1. Using the Porter’s framework, we will examine the general and industry environment. Threat of New Entrants (SIC 3861) is low due to expensive and specialized equipment, patents on technology and equipment, great customer service and technical support; (SIC 7812) is low due to high costs to make films although educational and documentary films tend to be less expensive; (SIC 7822) is low as IMAX has long term contracts in place with current venues. Buyer Power (SIC 7812) is high as there are many companies that produce quality films and movies; (SIC 3861) is medium due to the many cinema companies although there is no real alternative to IMAX. Supplier Power (SIC 3861) is low.
At the height of the movie rental industry revenues hit $11.6 billion (“Video Tape Rental” 2012). Blockbuster Video was the largest video rental company in the US and around the world until it was bought by Dish Network in 2011 (Sakthi Prasad 2011). The movie rental industry was attacked by digital rentals since pay per view emerged, but it wasn’t until digital rentals online became popular that any real dent was made in the video rental revenues. Netflix emerged with a new concept of renting DVD’s via mail order with no late fees and as long as a customer desired to have the DVD. Their business concept included a subscription with unlimited rentals at one movie at a time.
The blockbuster movie is typically understood to be a work of film in theater or television which gains notoriety and popular appeal to such an extent that audience attendance and overall gross profits of the movie far exceed standard expectations of the time. The blockbuster movie generally surpasses the accepted standard set by similar films and becomes most notable for its popularity as well as its box office profits One key ingredient of a movie's ability to become a blockbuster hit is the concept of mass appeal. For a movie to find ultimate success, it must appeal to a wide spectrum of both male and female movie-goers as well as both young and old audiences. Movie studios typically attempt to combine elements of action and adventure with comedic aspects or a romantic story line within the plot to attract as many people as possible . According to Ph.D. research sociologist Brian Uzzi of Northwestern University, movie buzz can often help a film become a blockbuster hit.
An Indy film production can rival a mainstream film production if it has enough funding and distribution. Indy film also separate to low budget film, no budget film and underground film. A low-budget film is a motion picture shot with little or no funding from a major film studio or private investor. Many Independent films are made on low budgets, but films made on the mainstream circuit with inexperienced or unknown filmmakers can also have low budgets. Many young or first time filmmakers shoot low budget films to prove their talent before doing bigger productions.