Chapter 7 IMAX Essay

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Analysis: is the company’s entry into an international marketplace threatened by the actions of local competitors? How can cultural differences be minimized? Has the company made the appropriate choices between cost reduction and local adaptation to foreign markets? Can the company improve its effectiveness by embracing one international strategy over another? If so, how should it choose b/w a global , multidomestic, or transnational strategy?

expanding the company's global presence automatically increase its scale of operations, providing it with a larger revenue and asset base. IMAX recognized these benefits o fgloal expansion and took its first step outside of Canada and installed its first multiplex at the loews IMAX Theatre in New York City in 1994 just after the company was listed on NASDAQ stock exchange. IMAX’s international activities continued to expand, as of March 2014, there are 840 IMAX theater systems operating in 57 countries. (marketline) Every new theatre IMAX opens somewhere in the world lowers the per-theatre cost of production of its unique movies, and each new theatre adds to the company’s capacity to produce more films for all the theatres in the chain.

Currently, IMAX have wholly-owned subsidiaries in United States, Japan, Hong Kong, People’s Republic of China, Coyman Islands and Barbados. However, looking through the history of IMAX (see appendix), it seems joint venture is the most common entry mode adopted by IMAX. Joint Ventures allow IMAX to use local firm’s management and market knowledge to save time and effort to overcome cultural differences.

in addition, IMAX introduced the joint revenue sharing arrangement, allowing commercial theater exhibitors to instal IMAX theater systems without significant initial capital investment required in a lease or sale arrangement. the joint revenue sharing arrangement has been an important factor in the expansion of the company’s theatre network, which has grown by
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