IMAX Larger Than Life Harvard Case Solution & Analysis

IMAX Larger Than Life Case Solution



Back in the days, a new entertainment means was getting attraction and trending in the audience when moving images started to flicker in dark theatres. Watching movies on small television screens was getting popular, as the audiences were getting educated on how to program their VCRs as they were enjoying the experience of watching movies with their family and friends.
While the trend of watching movies on small television screens was growing rapidly, a small group of visionary people were working on a ground breaking technology which will allow them to project the moving images over gigantic screens allowing a large number of audience to enjoy the movie while opening commercial development to the industry.

The idea of projecting movies in theaters became an instant success, after the success of a multi-screen theater system at the Montreal Expo it gave filmmakers thoughts regarding the creation of large format movie system. Large format movie system was intended to specifically be rolled in theaters that offer large screen for the projection of movies. This was the time IMAX’s idea was originated, as the multi-screen theaters were instant success.

Since the beginning of their operations, IMAX operated on a large scale. They were the only entity on the globe that was involved in every aspect of large format movie systems. IMAX did not pay attention to a specific side of large movie format, being fully aware of the potential lying in the industry they expanded their area of focus towards all the aspects of large format movie systems. After their development, the operations of the company officially started in 1970, when it premiered its first movie at Fuji Pavilion in Osaka, Japan. Since their first premiere the company never looked back.
Once they got started with their operations, the company got itself listed in NASDAQ exchange in 1994, and it was able rapidly gain a good chunk of the market share by offering all the aspects of large format movie systems. Out of the total industry revenue, the company’s market capitalization accounted for $125 million. At this time, the market was growing rapidly; a total number of 295 theatres located in 40 countries were showing IMAX movies. This was large enough reach for the company as out of these 295 theatres, 60% of them were located in North America. These theatres were located in various places like museums, aquariums and zoos. IMAX 3D technology was adequately adopted to an estimated 50% of theatres located in such institutions.

Film Technology

Films that were produced by IMAX were printed on large films in comparison to the 35 mm films that were being used in old-fashioned multiplexes. The films of IMAX were ten times large than these films and the regular 35 mm films were projected on screens with an average height of 88 feet and width of 120 feet.
IMAX theatres were specifically designed for projecting images that stretched up to bordering vision of the viewer. The large screens of IMAX immersed the viewer completely in the screens. Every frame of IMAAX films had 15 sprocket holes to the projections through holes. IMAX designed projectors had higher shutter speed, rolling loop motion and a vacuum which held the film to the lens for effective projection.

Potential and skills were developed by IMAX to design and assemble the significant components involved in its projectors and camera systems. The elements being used by the company, majority of these elements were purchased by the company from the vendors. IMAX had strong relations with these vendors and had been doing business with them since a long time span. IMAX paid special attention towards the quality of the elements and components being used by for the cameras and projection systems. High quality product from the company ensured them in providing an average service time of 99.9 per cent for the equipment that was installed in theatres. IMAX knew that the theatres elements were of importance to their brand equity and they made sure that company’s personnel visited the theatres for maintaining high standards for servicing the systems. In addition, IMAX serviced the projection systems on a regular basis of three months and a time interval of a year was followed for servicing the audio systems of the theatres. Adequate and efficient maintenance of the projectors and theatres of IMAX helped them significantly in increasing the level of their offering to the market which sufficiently helped them in growing as a company.................

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