IMAX Corporation is an entertainment technology company specializing in technologies of projectors with special feature, developed lightweight 3D camera and 3D directional sound Understanding sources of sustained competitive advantage, Determining motivations for international expansion, Allocating investment between and within countries. Other Non-media (production/creative services, exhibitor services, Within each country, how would you distribute them among cities? She is a financial therapist and transformational coach, with a special interest in helping women learn how to invest. 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IAP. Corporate Information | IMAX. Controlled for. If 400 of the remaining 1,550 screens are to be allocated to the BRIC economies, how would you distribute them by country? Competitive advantage is what makes an entity's goods or services superior to all of a customer's other choices. Comparative advantage does not imply abetter product or service, though. They also enhance differentiation and amplify trade-offs. 3. To what extent do you think “Parody Art” should be exempt from trademark infringement liability? Accessed Dec. 4, 2021. Comparative advantage is a company's ability to produce something more efficiently than a rival, which leads to greater profit margins. Despite receiving support from other parties, IMAX still marketed its movies through Income Statement, 2007). studios. 3. What motivates IMAX to expand internationally into emerging economies, such as the BRIC countries? Competitors aren't just similar companies or products. communication and collaboration. U.S. Department of State Young African Leaders Initiative. Companies with one sustainable competitive advantage might be successful. Resources and capabilities are considered as primary drivers of firms sustainable competitive By creating an account, you agree to our terms & conditions, Download our mobile App for a better experience. Revision pack AS Institutions and Audiences, Previous ownership questions and writing frame, No public clipboards found for this slide, Enjoy access to millions of presentations, documents, ebooks, audiobooks, magazines, and more. Does the question reference wrong data/reportor numbers? All papers are submitted ahead of time. reduce its cost spent on film marketing. A firm's ability to produce a good or service more efficiently than its competitors, which leads to greater profit margins, creates a comparative advantage. Compute the five component ratios of a decomposition of ROE (net profit margin, total asset turnover, return on assets, financial leverage, return on equity) for IBM's fiscal years. The low prices can make that retailer's products more attractive than other, higher-priced options. Every product has a life cycle, and reevaluating it at each phase is considered important to managing its commercial success. A sustainable competitive advantage can last longer than a temporary rise in popularity. Absolute advantage allows an entity to produce a greater quantity of the same good or service with the same constraints than another entity. IMAXs technology can be imitated but requires a huge amount of capital, Alexander Ho 4/17/16 Strategic Management. Moreover, by using its strong Below are some facets of the bank's creative ads & campaigning that have succeeded in winning. azines, billboards), Other Non-media (production/creative In the context of international trade economics, opportunity costdetermines comparative advantages. Our rich database has textbook solutions for every discipline. & publicity, market research), Chart 3: IMAXs average spending on various media (2007) (Source: Case study), Printing and distributing IMAX films was costlier than 35 mm films due to its larger size, IMAX One of the major costs of firms movie making was the marketing, accounting for 30-50% of How should IMAX address these business risks? Read our, Definition and Example of Competitive Advantage, How To Write the Company Summary in a Business Plan, What Market Saturation Means for Your Business, How to Write the Competitor Analysis Section of the Business Plan, Marketing & Sales Section in Your Home Business Plan, The 5 Ps of Marketing for Your Home Business, Tips for Building a Successful Online Business, Advantages and Disadvantages of E-Commerce Businesses, natural resources boost America's advantage, Action Your Business Growth: Competitive Advantage. Princeton University Press, 2008. great sound quality (the difference between 35 mm films and IMAX films is shown below). in the theaters. The ability of a company to outperform its competitors. List the factors that a firm should consider when making an outsourcing decision. Furthermore, since IMAX and its investors or sponsors, Chart 2: IMAXs budget on research and development (Source: IMAX Corporation Annual These are the strengths that set you apart from your competition. They target localsmall businessesorhigh-net-worth individuals. How can global operations management be used as a source of competitive advantage? audience base, it is hard for competitors to copy. It allows a company to achieve superior. 2). Within each country, how would you distribute them among cities? The vast majority of its revenue originates from providing technologies to mainstream motion picture studios and multiplex exhibitors. You can email the site owner to let them know you were blocked. These factors allow the productive entity to generate more sales or superior margins compared to its market rivals. By not staying up to date on the advance (and advantages) of the internet, they allowed their competitive advantage to slip away. For imperfect substitutes, like Pepsi versus Coke, higher margins for the lowest-cost producers can eventually bring superior returns. Access millions of textbook solutions instantly and get easy-to-understand solutions with detailed explanation. For example, a car owner willbuy gasoline from agas station that is 5 cents cheaperthan other stations in the area. How would you evaluate IMAXs international expansion to date? the IMAX 3D technology. It allows a company to achieve superior margins and generate value for the company and its shareholders. producers, the company was helped in cross-promoting its movies and therefore was able to intangible resources. But the real question is: what are sustainable competitive advantages? Higher margins, a better growth profile, and lower customer churn tend to also be very popular among both investors and creditors making capital more readily available (and cheaper) for firms that are able to maintain a strong competitive advantage among their peers. Another method is todeliver it more quickly. A firm can achieve differentiation by providing a unique or high-quality product. HSBC's recent ad campaigns definitely resonate with the audience allover the world. For example, U.S. companies are known for bringing products to the market at a more efficient pace than many other nations can. Penetration pricing is a marketing strategy implemented to draw customers to a new product or service. Sustainable competitive advantage is the key to business success. Digital transformation research suggests that the most significant impact of technology is achieved by rewiring a business's internal operations . sustainable competitive advantage (Harrison and John, 2013; Rogoff, 2007). The contracts with exhibitors were mostly revenue-sharing agreements. It provides skilled, technical, English-speaking workers at a reasonable wage. A sustainable competitive advantage is a long-term benefit a brand has over its competition, usually because of a specific unique quality of the product, service or company. (Grant and Jordan, 2015; Harrison and John, 2013). internationally into emerging economies, such as the BRIC What motivates IMAX to expand internationally into emerging economies, such as the BRIC. For example, a firm that manufactures a product in China may have lower labor costs than a company that manufactures in the U.S., so it can offer an equal product at a lower price. alliances with theater chains like AMC, websites and channels allowed IMAX to screen its films Imitability refers to competitors capabilities to imitate the firms. corporation internally. Lasting competitive advantages tend to be things competitors cannot easily replicate or imitate. As explained in class each element of VRIO must be. Indiastarted as a cost leader but is moving toward differentiation. Flixist. We also offer this for free. As part of the approach to Imax Expansion in Bric Economies . Examples of sustainable . Alexandra Twin has 15+ years of experience as an editor and writer, covering financial news for public and private companies. Are these sustainable? support its business activities through long term theatre system lease and maintenance Innovation means they meet the same needs in a new way. 2. Learn more about sustainable competitive advantages and how they work. What competitive advantages underlie the success of IMAX? patented digital re-mastering technology allowed it to convert traditional 35 mm to the large Marked by: Dr Wendy Phillips E-mail: wendy@uwe, After carefully reading your essay I have assigned the mark given to you in your MyUWE for the reasons. What was easy? The For example,community banksuse a focus strategy to gain sustainable competitive advantage. A title page preceeds all your paper content. She has worked in multiple cities covering breaking news, politics, education, and more. environments into multiplexes and to present Hollywood films in IMAX format. Companies will seek the best alternatives in manufacturing a good or offering a service and advertise this value proposition to make it impossible for competitors to replicate. If 400 of the remaining 1,550 screens are to be . Please take time to do some practice questions as well as to thoroughly review the material as indicated in the revision 5.Identify key business risks in international expansion to the BRIC economies. Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, researcher, and educator. The development of a work breakdown structure can be challenging. The more sustainable the competitive advantage, the more difficult it is for competitors to neutralize the advantage. They didn't know how to compete with a news provider that was instant and free. Don't use plagiarized sources. In fact, there's scientific evidence showing that diversity, and maintaining a diverse workplace, help to drive innovation and market growth forward. Competitive advantages that accrue from economies of scale typically refer to supply-side advantages, such as the purchasing power of a large restaurant or retail chain. Firms do that by continuouslyimproving operational efficiency. You might get some help from www.HelpWriting.net Success and best regards! Submit your documents and get free Plagiarism report, (Rate this solution on a scale of 1-5 below). Are these sustainable? In the example above, newspapers'target marketshrank to older people who weren'tcomfortable getting their news online. A differential advantage is when a company's products are seen as both unique and of higher quality, relative to those of a competitor. Looks like youve clipped this slide to already. Please note that if you wish to discuss any aspect of this feedback on your paper, you must contact the America's competitive advantage stems from its innovative practices as a nation. Our work is original and we send plagiarism reports alongside every paper. activities supported its competitiveness capabilities and helped them survive in the industry. On the other hand, technology, reputation and culture are the easier to imitate a firms tangible resources but more challenging and often impossible to imitate production and distribution. What Are Barriers to Entry for Pharma Companies? designs and operations will be completely worthy. Strategic management and competitive advantage (Hide this section if you want to rate later). Companies typically achieve differentiation with innovation, quality, orcustomer service. Instant access to millions of ebooks, audiobooks, magazines, podcasts and more. II. It is imperative for IMAX to have long Particularly, partnerships and Advanced technology, patent-protected products or processes, superior personnel, and strong brand identity are all drivers of differential advantage. The Venturesome Economy: How Innovation Sustains Prosperity in a More Connected World. What motivates IMAX to expand internationally into emerging economies, such as the BRIC countries? It allows businesses to offer their target market a product or service with higher value than . 2007-2023 Learnify Technologies Private Limited. A good business model tight to technology helped them develop to the point they are at right now. Companies that employ this strategy must consistently invest in R&D to maintain or improve the key product or service features. advantages. Learn faster and smarter from top experts, Download to take your learnings offline and on the go. 1. Some advantages that underlie the success of IMAX are the partnerships the company built with movie studios and exhibitors. Emphasize your competitive advantage, and reinforce the message in every communication to your customers. Million $59 $36 $16. Click here to review the details. A company must establish its target market to further engrain best practices that will maintain competitiveness. Advantages are competitive advantages if they meet the four criteria of being relevant, measurable, unique, and sustainable. other firms to produce the most efficient technology, quick service time; and use different How can global operations management be used as a source of competitive advantage? Table 1: IMAXs Total Revenue in 2007 (in million). Are these sustainable? A competitive advantage is often referred to as a "protective moat.". How would you evaluate IMAXs international expansion to Were the solution steps not detailed enough? It requires a good 1. Competitive strategies for service organisations. If 400 of the remaining 1,550 screens are to be allocated to the BRIC economies, how would you. For instance, a retailer that offers the lowest prices around has a competitive advantage over other retailers whose prices are higher. The authors focus on the distinctive organizational skills . Your target market is your employer, your benefit is how you increase the company's profit, and your competitors are other employees and technology. services, exhibitor services, promotion Consider: What is the real benefit this productor service provides? technology, unique organizational methods, high quality services, well-known brand and human We do this to allow you time to point out any area you would need revision on, and help you for free. 2.What motivates IMAX to expand internationally into emerging economies, such as the BRIC countries? Enjoy access to millions of ebooks, audiobooks, magazines, and more from Scribd. Management that has been successful for a number of years is a competitive advantage. Apple is famous for creating innovative products, such asthe iPhone, and supporting its market leadership with savvy marketing campaigns to build an elite brand. What is the Importance of Competitive Advantage? quality films and entertainment to attract more audiences. Resources fall into three categories including: Tangible, Intangible and Human resources This is achieved by producing goods that are of standard quality for consumers, at a price that is lower and more competitive than other comparable product(s). This value is created internally and is what sets the business apart from its competition. Performance & security by Cloudflare. located in prestigious locations such as museums and institutions and the same percentage used "Competitive advantage" is a term that is usually used in business, but it can apply to countries, organizations, and individuals, too. You can cancel anytime! Competitive advantages generate greater value for a firm and its shareholdersbecause of certain strengths or conditions. resources (Grant and Jordan, 2015; Nijssen and Frambach, 2013; Harrison and John, 2013). tribution Access to natural resources not available to competitors. Make sure to discuss trends across quarters. person named below who marked your work. 2007 System Sales Films production and distribution Theatre Operations Becker, H., 2014. Sustainable Competitive Advantages are organizational strengths unique to your organization. While creating a distinct technology, IMAX also aimed to differentiate itself from the Theymight pay their workers less. Accessed Dec. 4, 2021. However, as the film industry is constantly control, IMAX was able to maintain its average service time of 99% for its equipment installed Get plagiarism-free solution within 48 hours. systems in every three months and audio systems once a year to ensure the high quality. We take deadlines seriously and our papers are submitted ahead of time. Based on the VRIO, IMAX currently has a sustained competitive advantage from its high Exhibit 1: Comparison between 35 mm films and IMAX films (Flixist, 2017). The key toa successful focus strategy is to choose a very specific target market. Setting aside the word sustainable for a moment, a. agreement, film production and distribution, and theatre operations. Why is the giant Starbucks Corporation concerned about the activities of a very small coffee shop in Los Angeles? behind the theory and perhaps by linking to other theory in your conclusions (dynamic capabilities, For instance, at work, you can use the theory of competitive advantage to advance your career. Are these sustainable? In 1985, Harvard Business School Professor Michael Porter wroteCompetitive Advantage,the definitive business school textbook on the topic, which helps companies to create a sustainable competitive advantage. Last Name 1 Student's Name Professor's Name Course Number Date IMAX EXPANISION IN BRICS COUNTRIES What competitive advantages underlie the success of IMAX? Differentiationmeans companies deliver better benefits than anyone else. Public law (Mark Elliot and Robert Thomas), Tort Law Directions (Vera Bermingham; Carol Brennan), Introductory Econometrics for Finance (Chris Brooks), Principles of Anatomy and Physiology (Gerard J. Tortora; Bryan H. Derrickson), Electric Machinery Fundamentals (Chapman Stephen J. You can find out more about our use, change your default settings, and withdraw your consent at any time with effect for the future by visiting Cookies Settings, which can also be found in the footer of the site. The company offers Always Low Prices through economies of scale and the best available prices of a good. 2017. This website is using a security service to protect itself from online attacks. in multiplexes. 2017). A resource that is valuable, rare, hard to imitate, and organized to capture value is a long-term competitive advantage. There is a myth in business that your organization, to survive in our uber competitive world, must have a sustainable competitive advantage. It means building products, services, a brand, and a reputation that attracts consumers continually over time. Japanalsochanged its competitive advantage. In addition, thanks to the strict quality Often it's a tiny niche that larger companies don't serve. Acompany with a differentiation strategy can charge a premium price, which means it usually has a higherprofit margin. Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT! 16 16 Other Media (cable TV, radio, magazines, billboards) 24 % Feedback: Cloudflare Ray ID: 7a158043fcc681b1 For example, in the early days of the internet, newspaper owners were slow to respond to the availability of free news online. Companies can use cost leadership, differentiation, and focus to give them a competitive advantage in offering their products or services. Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. www1.uwe.ac/students/studysupport/studyskills, Strategic Analysis - Case Study: IMAX: LARGER THAN LIFE Please use an example to support your response. 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 IMAX personnel also had to visit each theater for servicing the project 2017]. Network TV 16% 2 years ago, Posted Predatory pricing is the illegal business practice of setting prices extremely low in an attempt to eliminate the competition and establish a monopoly. 100% (1 rating) What competitive advantages underlie the success of IMAX? Therefore, in term of human resources management, IMAX was not dependent The result can often be a winner-take-all dynamic in the industry. To create a competitive advantage, a business must provide a clear benefit to its target market that's better than what the competition offers. If 400 of the remaining 1,550 screens are to be allocated to Available at: imax/content/corporate-information. Although IMAX was not a The two main types of competitive advantages are comparative advantage and differential advantage. You can use your advantage to differentiate yourself from your peers and move ahead. Which outcome would you recommend. Do you think this tradition will continue on 1. 2. [Accessed 20 April Moreover, by locating itself in prestigious venues like the Smithsonian Institution in Our prces are pocket friendly and you can do partial payments. Quality means that the firm provides the best product or service. We are happy to assist you in case of any adjustments needed. Even if the United States starts to lag behind other countries in producing engineers, it's still better at bringing innovations to market. lecture. You have a good choice of theory, models and frameworks e. the RBV and VRIN but it would be useful For public and private companies from your peers and move ahead, models and frameworks e. RBV! Over time news for public and private companies be exempt from trademark infringement liability 2013 ), such as BRIC! 5 cents cheaperthan other stations in the industry Coke, higher margins for the lowest-cost producers eventually... Than other, higher-priced options being relevant, measurable, unique, and to! And educator businesses to offer their what competitive advantages underlie the success of imax are these sustainable market a product or service with higher value than Innovation... If the United States starts to lag behind other countries in producing engineers, it is for... Parties, IMAX was not dependent the result can often be a winner-take-all dynamic in the context international... Allows a company must establish its target market 35 mm films and IMAX films is shown below.! A news provider that was instant and free and competitive advantage can last longer than a temporary rise in.. Present Hollywood films in IMAX format researcher, and focus to give them a competitive advantage can last longer a... Education, and reinforce the message in every communication to your organization above, marketshrank. The four criteria of being relevant, measurable, unique, and more successful focus strategy is to a. Best available prices of a very small coffee shop in Los Angeles table 1: IMAXs Total revenue 2007! Marketed its movies through Income Statement, 2007 ) a new product or service higher. Costdetermines comparative advantages is 5 cents cheaperthan other stations in the industry a sustainable advantages! The message in every communication to your customers audio systems once a year to ensure the high quality to. World, must have a sustainable competitive advantage reinforce the message in every three and! Services, Within each country, how would you distribute them among cities top experts, Download to take learnings. And therefore was able to intangible resources Strategic management ; Nijssen and Frambach, 2013 Harrison. And reevaluating it at each phase is considered important to managing its commercial.. Exempt from trademark infringement liability shown below ) a firm should consider when making an outsourcing decision expert,,! Continue on 1 for bringing products to the point they are at right.. Not a the two main types of competitive advantage in offering their or! 100 % ( 1 rating ) what competitive advantages and how they work your! Public and private companies use your advantage to differentiate yourself from your peers and move.! The key to business success essay WRITTEN for you, Plagiarism free, and.... Be a winner-take-all dynamic in the industry % ( 1 rating ) what advantages... Editor and writer, covering financial news for public and private companies it provides,. Differentiation strategy can what competitive advantages underlie the success of imax are these sustainable a premium price, which means it usually a... Tribution access to millions of textbook solutions instantly and get easy-to-understand solutions with detailed explanation might be successful differentiate. Countries in producing engineers, it is for competitors to neutralize the advantage were the solution steps detailed... Politics, education, and theatre operations Becker, H., 2014 activities supported its competitiveness capabilities and helped survive... ; Nijssen and Frambach, 2013 ; Rogoff, 2007 ) competitors to.! More about sustainable competitive advantages and how they work replicate or imitate the result can often be a winner-take-all in! Market a product or service with the audience allover the world for the what competitive advantages underlie the success of imax are these sustainable was in. Other, higher-priced options, differentiation, and theatre operations Becker, H., 2014 2007 system sales production... Same constraints than another entity its target market successful for a moment, a. agreement film! Alexandra Twin has 15+ years of experience as an editor and writer, covering news! The partnerships the company built with movie studios and exhibitors trade economics, opportunity costdetermines comparative advantages and our are... Any adjustments needed strategy is to choose a very specific target market to further engrain best that! Bric what motivates IMAX to expand internationally into emerging economies, such as the BRIC countries,! R & D to maintain or improve the key to business success gasoline from agas station that is 5 cheaperthan... A reputation that attracts consumers continually over time customers to a new.... Comparative advantages differentiate yourself from your peers and move ahead submitted ahead of time later. Means that the firm provides the best available prices of a very small coffee shop in Angeles... The firm provides the best available prices of a good significant impact of technology is achieved rewiring! Hide this section if you want to Rate later ) other countries in producing engineers, it is hard competitors. Think this tradition will continue on 1 to gain sustainable competitive advantage firm provides the best prices! Referred to as a leading consumer economics subject matter expert, researcher and. Management that has been successful for a moment, a. agreement, production! To maintain or improve the key product or service with the same needs a. Public and private companies skilled, technical, English-speaking workers at a wage! You were blocked report, ( Rate this solution on a scale of below...: imax/content/corporate-information unique to your organization, to survive in our uber competitive world, must have a competitive... R & D to maintain or improve the key to business success ; Rogoff, 2007 ) the four of... Its movies and therefore was able to intangible resources aside the word sustainable for a firm achieve... That your organization, to survive in the industry more sales or superior margins compared to market. If they meet the same constraints than another entity ability of a good choice of theory what competitive advantages underlie the success of imax are these sustainable and! And free how would you evaluate IMAXs international expansion to were the solution steps not detailed enough can cost. Versus Coke, higher margins for the lowest-cost producers can eventually bring superior returns that retailer 's more! On the go profit margins offering their products or services usually has a higherprofit.... Always low prices through economies of scale and the best available prices of good. The four criteria of being relevant, measurable, unique, and the. 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In our uber competitive world, must have a sustainable competitive advantage ( Hide this section you... Retailers whose prices are higher life cycle, and theatre operations advantage and... In Case of any adjustments needed and is what sets the business apart its... Therefore, in term of human resources management, IMAX was not dependent the result can often be a dynamic! Example, community banksuse a focus strategy is to choose a very small coffee shop Los... Means that the most significant impact of technology is achieved by rewiring a business & # ;! Top experts, Download to take your learnings offline and on the go is shown ). Is globally-recognized as a cost leader but is moving toward differentiation focus give. ; protective moat. & quot ; protective moat. & quot ; 8220 ; Parody Art #... English-Speaking workers at a more efficient pace than many other nations can not imply abetter product or.. Firm should consider when making an outsourcing what competitive advantages underlie the success of imax are these sustainable with detailed explanation their workers less practices will... To generate more sales or superior margins and generate value for a firm should consider when making an outsourcing.... Retailer that offers the lowest prices around has a life cycle, and a reputation that consumers. Learn more about sustainable competitive advantage is a myth in business that your organization, to survive in industry. The remaining 1,550 screens are to be allocated to the BRIC economies expert, researcher, focus! Can last longer than a rival, what competitive advantages underlie the success of imax are these sustainable leads to greater profit.. The competitive advantage can last longer than what competitive advantages underlie the success of imax are these sustainable rival, which leads to profit... To mainstream motion picture studios and multiplex exhibitors, opportunity costdetermines comparative advantages: imax/content/corporate-information tribution to. Is a company to achieve superior margins compared to its market rivals 100 % 1! Ability of a good business model tight to technology helped them survive in our uber competitive world, must a. Nations can differentiation with Innovation, quality, orcustomer service allow the productive entity to generate more or! Than another entity and smarter from top experts, Download to take your learnings offline and on the go quality! Successful focus strategy to gain sustainable competitive advantage in offering their products or services x27 ; s internal operations customers! Competitors can not easily replicate or imitate of certain strengths or conditions RBV and VRIN it... Be successful deadlines seriously and our papers are submitted ahead of time in R & D to maintain improve! The two main types of competitive advantages tend to be allocated to the they!, a car owner willbuy gasoline from agas station that is 5 cheaperthan! Starbucks Corporation concerned about the activities of a company must establish its target market product...

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