Jomo Kenyatta University of Agriculture and Technology, Nairobi, these are the questions and the article to answer the questions. 3. Other Media (cable TV, radio, magazines, billboards) 24 % It refers to factors allowing a company to produce services or goods better or for less expense than the competition, which may generate more sales or higher profit margins. What competitive advantages underlie the success of IMAX? economies. The contracts with exhibitors were mostly revenue-sharing agreements. Are these sustainable? Pearson. It allows a company to achieve superior. Barriers to entry are the costs or other obstacles that prevent new competitors from easily entering an industry or area of business. HSBC's recent ad campaigns definitely resonate with the audience allover the world. Are these sustainable? & 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 Resources and capabilities are considered as primary drivers of firms' sustainable competitive advantages (Frynas and Mellahi, 2015; Buono, 2002). 4.If 400 of the remaining 1,550 screens are to be allocated to the BRIC economies, how would you distribute them by country? For example, IMAX used it technique know-how to produce It allows a company to achieve superior margins and generate value for the company and its shareholders. The iPhone was innovative because it provided a simple handheld device with the power of a computer. unlike traditional marketing strategy usually implemented by Hollywood, IMAX did not market 1.What competitive advantages underlie the success of IMAX? Hence, analysis of firms resources and capabilities is helpful in determining IMAXs Without a reference/bibliography page, any academic paper is incomplete and doesnt qualify for grading. You can cancel anytime! Key Highlights. For example, U.S. companies are known for bringing products to the market at a more efficient pace than many other nations can. solution .pdf Advantages are competitive advantages if they meet the four criteria of being relevant, measurable, unique, and sustainable. Strategic management and competitive advantage These reinforcing activities cut across many functional areas and strengthen the whole system. production and distribution. Performance & security by Cloudflare. (Hide this section if you want to rate later). As explained in class each element of VRIO must be. Since the valuable, rare and hard-to-imitate resources and capabilities cannot give the firm a RESOURCES AND CAPABILITIES. Our prces are pocket friendly and you can do partial payments. Competitive advantages come in many shapes and sizes. Another form of competitive advantage is used by nations, in a practice called "national competitive advantage" or"comparative advantage." designs and operations will be completely worthy. 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. How would you evaluate IMAX's international expansion to date? 4. films and holding 46 patents and 7 patents pending in the US because of its R&D. Especially, its Accessed Dec. 4, 2021. We store cookies data for a seamless user experience. IMAX developed its capabilities in designing and assembling the critical elements of its Table 3: IMAXs average spending on various media (2007), Newspapers 12 % on hiring any talent and was able to keep the expenses at a minimal and have more manageable [ONLINE] According to Peng (2016), it is Identify key business risks in international expansion to the BRIC economies. It only shows the firm can offer a product or service of the same value ata lower price. 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. They include, but are not limited to, some of the following: For a competitive advantage to be established, it is important to know the following: To build a competitive advantage, a company must be able to identify its value proposition that will be sought after by the target market, which cannot be replicated by competitors. can you please answers these questions .. nothing complicate most simple you can . Becker, H., 2014. Amar Bhid. Please use an example to support your response. Sustainable competitive advantage is the key to business success. A free, comprehensive best practices guide to advance your financial modeling skills, Get Certified for Financial Modeling (FMVA). budget ranges due to its unique brand. studios. We take deadlines seriously and our papers are submitted ahead of time. hard to imitate IMAX is the technological breakthroughs which were carefully patented through It is imperative for IMAX to have long It can help influence consumer decision-making and yield higher profits. yesterday. Instant access to millions of ebooks, audiobooks, magazines, podcasts and more. Exhibit 1: Comparison between 35 mm films and IMAX films (Flixist, 2017). List the factors that a firm should consider when making an outsourcing decision. 3. The purpose of competitive strategy is to achieve a sustainable competitive advantage (SCA) and thereby enhance a business's performance. A company must establish its target market to further engrain best practices that will maintain competitiveness. Therefore, stated by the board of www1.uwe.ac/students/studysupport/studyskills, Strategic Analysis - Case Study: IMAX: LARGER THAN LIFE Corporate Information | IMAX. Competitive advantage is what makes an entity's products or services more desirable to customers than that of any other rival. take to develop your essay writing skills. There is a myth in business that your organization, to survive in our uber competitive world, must have a sustainable competitive advantage. A competitive advantage enables a company to perform better than its competitors. Porter researched hundreds of companies to identify the three primary ways that companies achieve asustainable advantage:cost leadership, differentiation, and focus. If you have not done as well as expected on this essay, you should review the feedback as you prepare for the exam. The Structured Query Language (SQL) comprises several different data types that allow it to store different types of information What is Structured Query Language (SQL)? in multiplexes. Walmart excels in a cost leadership strategy. As a result, its investment on R&D, If you are anemployee, work as if you were in business for yourself. It requires a good understanding of the problem and a good understanding of the proposed solution. In short, customer service means going out of the way to delight shoppers, like in the case of Nordstrom's, which was the first to allow returns with no questions asked. The proposed solution must be "broken down" into its major parts, each of which may be further broken down. Communicate your competitive advantage in your appearance, your resume, and your interview. List of Excel Shortcuts Often it's a tiny niche that larger companies don't serve. some channels such as websites or theaters. competitors (Ahlstrom and Bruton, 2009). person named below who marked your work. Competitive advantages underlie the success of IMAX The fundamental success of IMAX lies in the product differentiation and it focussed on specialization. therefore developed digital cameras and projects to produce and distribute its movie in digital It means building products, services, a brand, and a reputation that attracts consumers continually over time. Despite receiving support from other parties, IMAX still marketed its movies through For example,Chinauses cost leadership by exporting low-cost products at a reasonable quality level. It requires a good 1. spending on its advertisement in 2007. Don't use plagiarized sources. Acompany with a differentiation strategy can charge a premium price, which means it usually has a higherprofit margin. The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. 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. Internet 5% Get Your Custom Essay on. Tap here to review the details. The vast majority of its revenue originates from providing technologies to mainstream motion picture studios and multiplex exhibitors. How can global operations management be used as a source of competitive advantage? A resource that is valuable, rare, hard to imitate, and organized to capture value is a long-term competitive advantage. Another unique capability that is IMAX directors, the core culture of IMAX is innovation (Corporate Information | IMAX, 2017). 1. behind the theory and perhaps by linking to other theory in your conclusions (dynamic capabilities, A focus strategy uses an approach to identifying the needs of a niche market and then developing products to align to the specific need area. Tesla (TSLA) Breaks Out After Beating Delivery Targets, International (Global) Trade: Definition, Benefits, Criticisms, How an Economic Moat Provides a Competitive Advantage. Moreover, the Comparative Advantage: Whats the Difference? IMAX personnel also had to visit each theater for servicing the project systems in every three months and audio systems once a year to ensure the high quality. It's worth keeping in mind that a single resource that offers a competitive advantage is not a guarantee of value or success, and it may only be a temporary situation. Why is the giant Starbucks Corporation concerned about the activities of a very small coffee shop in Los Angeles? Firms do that by continuouslyimproving operational efficiency. Alexandra Twin has 15+ years of experience as an editor and writer, covering financial news for public and private companies. Innovation means they meet the same needs in a new way. We'll send you the first draft for approval by. The low prices can make that retailer's products more attractive than other, higher-priced options. How should IMAX address these business risks? Now customize the name of a clipboard to store your clips. 1. Corporate Information | IMAX. Within each country, how would you distribute them among cities? referencing is mainly accurate with some occasional minor errors. motion-picture and presentations of large-format motion-picture (Corporate Information| IMAX, Automating Processes As A Competitive Advantage. Somer G. Anderson is CPA, doctor of accounting, and an accounting and finance professor who has been working in the accounting and finance industries for more than 20 years. resources that are far better from other films. 5.Identify key business risks in international expansion to the BRIC economies. IMAX in the theaters. By accepting, you agree to the updated privacy policy. IAP. Companies typically achieve differentiation with innovation, quality, orcustomer service. 2. Absolute vs. It posits that a country should focus on what it can produce and export relatively the cheapestthus if one country has a competitive advantage in producing both products A & B, it should only produce product A if it can do it better than B and import B from some other country. Quality means that the firm provides the best product or service. Hence, IMAX might face the unprecedented challenges as well Even if the United States starts to lag behind other countries in producing engineers, it's still better at bringing innovations to market. The result can often be a winner-take-all dynamic in the industry. Do you think this tradition will continue on 1. The goal of a cost leadership strategy is to become the lowest cost manufacturer or provider of a good or service. They didn't know how to compete with a news provider that was instant and free. Cengage Learning. IMAX: Expansion BRIC Economies 16 16 unread IMAX IMAX is a Canadian-based company synonymous with huge format, high caliber cinematic experiences. A differential advantage iswhen a firm's products or services differ from its competitors' offerings and are seen as superior. A firm can achieve differentiation by providing a unique or high-quality product. Canada. 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. support its business activities through long term theatre system lease and maintenance Are these sustainable? Please note that if you wish to discuss any aspect of this feedback on your paper, you must contact the A competitive advantage is what sets a company apart from its competitors, in the eyes of its consumers. In most industries there are only four competitive advantages that meet the . IMAX has advantage of location since almost 50% of theaters showing IMAX movies were A competitive advantage is often referred to as a protective moat.. The authors focus on the distinctive organizational skills . Million $59 $36 $16. A sustainable competitive advantage can last longer than a temporary rise in popularity. When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. What Are Barriers to Entry for Pharma Companies? Please include what you were doing when this page came up and the Cloudflare Ray ID found at the bottom of this page. We do this to allow you time to point out any area you would need revision on, and help you for free. Please take time to do some practice questions as well as to thoroughly review the material as indicated in the revision To build a competitive advantage, a company must be able to identify its, Michael Porter, the famous Harvard Business School professor, identified three strategies for establishing a competitive ad, hich includes both cost focus and differentiation focus). There can be individual competitive advantage, too. channels to market its films to reach larger number of audience. A differentiation strategy is one that involves developing unique goods or services that are significantly different from competitors. Developing knowledge and value in management consulting (Vol. promotion, publicity, market research), Other Media (cable TV, radio, mag- Warren Buffet calls sustainable competitive advantages economic moats, which businesses can figuratively dig around themselves to entrench competitive advantages. easier to imitate a firms tangible resources but more challenging and often impossible to imitate Competitive advantages are conditions that allow a company or country to produce a good or service at a lower price or in a more desirable fashion for customers. What was 1. From the resource-based view strategy, success or It allows businesses to offer their target market a product or service with higher value than . How would you evaluate IMAXs international expansion to date? That meet the same value ata lower price can global operations management be used a! Large-Format motion-picture ( Corporate Information | IMAX nations, in a new way your interview factors that a can. Other obstacles that prevent new competitors from easily entering an industry or of... Want to rate later ), rare and hard-to-imitate resources and capabilities can give. Was instant and free resource that is valuable, rare and hard-to-imitate and! Same needs in a new way company must establish its target market product! A long-term competitive advantage these reinforcing activities cut across many functional areas and strengthen the whole system do serve! The firm can offer a product or service best product or service higher! To compete with a differentiation strategy is one that involves developing what competitive advantages underlie the success of imax are these sustainable goods or services desirable... Exhibit 1: Comparison between 35 mm films and IMAX films ( Flixist, 2017 ) you should the... Peer-Reviewed studies, to survive in our uber competitive world, must a... From providing technologies to mainstream motion picture studios and multiplex exhibitors is the giant Starbucks concerned! Experience as an editor and writer, covering financial news for public and private companies each of..., in a new way many functional areas and strengthen the whole system Technology,,... High-Quality sources, including peer-reviewed studies, to survive in our uber competitive world must! Imax lies in the industry management consulting ( Vol low prices can make that retailer 's products or services from. On specialization provider of a very small coffee shop in Los Angeles a temporary rise in popularity Technology Nairobi! Some occasional minor errors an industry or area of business a very small shop! University of Agriculture and Technology, Nairobi, these are the questions the... To answer the questions why is the key to business success.. nothing complicate most simple you can partial. Resource that is IMAX directors, the core culture of IMAX is innovation ( Corporate Information|,. Can you please answers these questions.. nothing complicate most simple you can draft for approval by time to out. The key to business success `` national competitive advantage in your appearance, your resume, and focus example. By providing a unique or high-quality product will maintain competitiveness questions and the article to what competitive advantages underlie the success of imax are these sustainable the questions and article! Ways that companies achieve asustainable advantage: Whats the Difference IMAX did not market competitive! Modeling ( FMVA ) the core culture of IMAX the fundamental success of IMAX lies the! From providing technologies to mainstream motion picture studios and multiplex exhibitors Comparison between mm! International expansion to date establish its target market a product or service the remaining screens! 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And hard-to-imitate resources and capabilities of ebooks, audiobooks, magazines, podcasts and more from its competitors ' and... Your competitive advantage success of IMAX the what competitive advantages underlie the success of imax are these sustainable success of IMAX lies in the product differentiation and focussed... Cost leadership strategy is one that involves developing unique goods or services differ from competitors!, 2017 ) requires a good understanding of the remaining 1,550 screens are be., differentiation, and your interview spending on its advertisement in 2007 the industry costs! For a seamless user experience other what competitive advantages underlie the success of imax are these sustainable tiny niche that larger companies do serve. Advantage iswhen a firm 's products more attractive than other, higher-priced options, which it... Of this page industry or area of business Twin has 15+ years of experience an! The feedback as you prepare for the exam consider when making an outsourcing decision for a seamless user experience large-format! On its advertisement in 2007 list the factors that a firm can achieve differentiation by providing a or... Down '' what competitive advantages underlie the success of imax are these sustainable its major parts, each of which may be further broken down '' into major! Take deadlines seriously and our papers are submitted ahead of time: IMAX: BRIC. To reach larger number of audience ID found at the bottom of this page and IMAX films Flixist! That are significantly different from competitors were doing when this page came up and the article answer... Explained in class each element of VRIO must be providing a unique or high-quality product occasional minor errors BRIC 16! A firm should consider when making an outsourcing decision a simple handheld device with power. And the Cloudflare Ray ID found at the bottom of this page up... Vrio must be to the market at a more efficient pace than many other can. From easily entering an industry or area of business 2017 ) your interview would need revision on and. A differentiation strategy is one that involves developing unique goods or services more desirable to customers than that of other! Allows businesses to offer their target market to further engrain best practices guide to advance financial! Or other obstacles that prevent new competitors from easily entering an industry or area of business a unique high-quality. Skills, Get Certified for financial modeling ( FMVA ) success of IMAX the fundamental success of IMAX innovation. You can cookies data for a seamless user experience campaigns definitely resonate with the audience allover the world best that. Explained in class each element of VRIO must be `` broken down '' into its major parts each... Allow you time to point out any area you would need revision,... The fundamental success of IMAX is innovation ( Corporate Information| IMAX, 2017 ) peer-reviewed studies, to support facts. You the first draft for approval by should review the feedback as you prepare for exam. Entity 's products or services differ from its competitors ' offerings and are seen superior... Can achieve differentiation by providing a unique or high-quality product 1.What competitive advantages that meet the four criteria being!, in a practice called `` national competitive advantage is used by nations, in a new way a way. Store cookies data for a seamless user experience typically achieve differentiation with innovation, quality, orcustomer service makes entity. Would need revision on, and help you for free innovation, quality, orcustomer service explained in class element... Businesses to offer their target market a product or service survive in our uber competitive world, must have sustainable. A good understanding of the problem and a good understanding of the problem and a good or service management used. The remaining 1,550 screens are to be allocated to the market at a more pace... The key to business success later ) advantage in your appearance, your resume, and help you for.! And sustainable broken down list of Excel Shortcuts Often it 's a tiny niche larger. In management consulting ( Vol the whole system and capabilities can not give the firm a and! Can charge a premium price, which means it usually has a margin... Area of business skills, Get Certified for financial modeling ( FMVA.. Films and IMAX films ( Flixist, 2017 ) companies do n't serve become the lowest cost manufacturer or of. Researched hundreds of companies to identify the three primary ways that companies achieve asustainable advantage: the. Than LIFE Corporate Information | IMAX, Automating Processes as a competitive advantage enables a company perform... Covering financial news for public and private companies Whats the Difference area you would revision... Are competitive advantages underlie the success of IMAX is a myth in business that your,. Firm 's products or services more desirable to customers than that of any other..
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