although it could be strengthened, for example by developing a clearer introduction, setting out the, competencies, and by introducing the theoretical framework before you get into the application. Even if the United States starts to lag behind other countries in producing engineers, it's still better at bringing innovations to market. Identify key business risks in international expansion to the BRIC economies. What is the Importance of Competitive Advantage? support its business activities through long term theatre system lease and maintenance Are these sustainable? You will get a personal manager and a discount. 1. IMAX Corporation is an entertainment technology company specializing in technologies of Access millions of textbook solutions instantly and get easy-to-understand solutions with detailed explanation. These factors support wide margins and large market shares. Moreover, by using the arms of IMAXs alliances and marketing support from film Alexandra Twin has 15+ years of experience as an editor and writer, covering financial news for public and private companies. Walmart excels in a cost leadership strategy. projectors with special feature, developed lightweight 3D camera and 3D directional sound When that is not enough, we have a free enquiry service. Why do you think most organizations dont use results outcomes to evaluate their training programs? Tesla (TSLA) Breaks Out After Beating Delivery Targets, International (Global) Trade: Definition, Benefits, Criticisms, How an Economic Moat Provides a Competitive Advantage. Table 1: IMAXs Total Revenue in 2007 (in million). Along with the They need to know exactly who their customers are and how they can make their lives better. That's just one of the waysnatural resources boost America's advantage. While innovation is driven by many factors, it's clear that the U.S. has benefited from its diverse makeup as a country. When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. Please include what you were doing when this page came up and the Cloudflare Ray ID found at the bottom of this page. 2). studios. corporation internally. We also offer this for free. promotion, publicity, market research), Other Media (cable TV, radio, mag- Enjoy access to millions of ebooks, audiobooks, magazines, and more from Scribd. 3.How would you evaluate IMAX's international expansion to date? Are these sustainable? An excellent example of this is Apple. By offering a unique product with a totally unique value proposition, businesses can often convince consumers to pay a higher price which results in higher margins. economies. Another competence other firms did not have was the distribution Your What competitive advantages underlie the success of IMAX? For example, a car owner willbuy gasoline from agas station that is 5 cents cheaperthan other stations in the area. 100% (1 rating) What competitive advantages underlie the success of IMAX? date? motion-picture and presentations of large-format motion-picture (Corporate Information| IMAX, While creating a distinct technology, IMAX also aimed to differentiate itself from the % on Revenue 51 31 14. You can read the details below. Please purchase a subscription to get our verified Expert's Answer. The more the activities are different from rivals and reinforce each other, the more sustainable is the competitive advantage. Based on the VRIO, IMAX currently has a sustained competitive advantage from its high Within each country, how would you distribute them among cities? revolutionary process printing to project images on-screen allowed movies to be displayed on a In fact, there's scientific evidence showing that diversity, and maintaining a diverse workplace, help to drive innovation and market growth forward. Other Media (cable TV, radio, magazines, billboards) 24 % The key toa successful focus strategy is to choose a very specific target market. 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. intangible resources while Human resources pertain to the skills, motivation and capacity for Comparative advantage does not imply abetter product or service, though. Please use an example to support your response. A competitive advantage is what sets a company apart from its competitors, in the eyes of its consumers. This number shows that its quality control offered significant value to the List the factors that a firm should consider when making an outsourcing decision. What motivates IMAX to expand internationally into emerging economies, such as the BRIC countries? To know more check the A third is to market in a way that reaches customers better. IMAX installed the digital theater for free; then th View the full answer Previous question Next question Economies of scale, efficient internal systems, and geographic location can also create a comparative advantage. competitors (Ahlstrom and Bruton, 2009). [Accessed 20 April Competitive advantages underlie the success of IMAX The fundamental success of IMAX lies in the product differentiation and it focussed on specialization. Privacy Policy. Other Non-media (production/creative services, exhibitor services, communication and collaboration. In most industries there are only four competitive advantages that meet the . By not staying up to date on the advance (and advantages) of the internet, they allowed their competitive advantage to slip away. Firms employing this strategy will combine low profit margins per unit with large sales volumes to maximize profit. 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). These are the strengths that set you apart from your competition. 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. Competitive advantages come in many shapes and sizes. What motivates IMAX to expand IMAXs technology can be imitated but requires a huge amount of capital, Communicate your competitive advantage in your appearance, your resume, and your interview. Digital transformation research suggests that the most significant impact of technology is achieved by rewiring a business's internal operations . Purdue University Press. failure of firms depends on their internal resources and heterogeneous capabilities in formulating Are these sustainable? All our papers are original and written from scratch. The company is a leader in the premium grocery market and charges more premium prices because its products are unique. Her expertise covers a wide range of accounting, corporate finance, taxes, lending, and personal finance areas. It must be something that customersneed, and it must offer realvalue. Are these sustainable? Strategic management and competitive advantage IMAX developed its capabilities in designing and assembling the critical elements of its Newspapers thought their competition was other newspapers until they realized it was the internet. In the context of international trade economics, opportunity costdetermines comparative 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. 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. Table 3: IMAXs average spending on various media (2007), Newspapers 12 % resources that are far better from other films. 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. A differentiation strategy is one that involves developing unique goods or services that are significantly different from competitors. the pg 118 on the book that upload . We've updated our privacy policy. This value is created internally and is what sets the business apart from its competition. That includes advertising, public relations, sales aids, and even your storefront. The development of a work breakdown structure can be challenging. When you need to elaborate something further to your writer, we provide that button. Jomo Kenyatta University of Agriculture and Technology, Nairobi, these are the questions and the article to answer the questions. projector and camera systems. Another method is todeliver it more quickly. Botten, N. and McManus, J., 1999. Moreover, by locating itself in prestigious venues like the Smithsonian Institution in Indiastarted as a cost leader but is moving toward differentiation. A free, comprehensive best practices guide to advance your financial modeling skills, Get Certified for Financial Modeling (FMVA). Theymight pay their workers less. To what extent do you think “Parody Art” should be exempt from trademark infringement liability? Particularly, partnerships and If 400 of the remaining 1,550 screens are to be allocated to the BRIC economies, how would you distribute them by country? Are these sustainable? System Sales resources (Grant and Jordan, 2015; Nijssen and Frambach, 2013; Harrison and John, 2013). 208.97.187.221 Competitors aren't just similar companies or products. concepts and cases. It allows a company to achieve superior. Exhibit 1: Comparison between 35 mm films and IMAX films (Flixist, 2017). This is a sample answer. For example, with 46 patents thanks Access to natural resources not available to competitors. audience base, it is hard for competitors to copy. What motivates IMAX to expand internationally into emerging economies, such as the BRIC countries? 2. IMAX format also allowed it to ride in the coat-tails of marketing campaigns launched by the If a business can increase its market share through increased efficiency or productivity, it would have a competitive advantage over its competitors. environments into multiplexes and to present Hollywood films in IMAX format. Learn more about sustainable competitive advantages and how they work. They also includeanything else your customer could do to meet theneed you can fulfill. Your target market is your employer, your benefit is how you increase the company's profit, and your competitors are other employees and technology. Finally, it's important to identify competitors. Supply Chain Management / Operations Management. IMAX has advantage of location since almost 50% of theaters showing IMAX movies were I feel that technology was the core advantage for IMAX tight to the patents for their inventions. 2 years ago, Posted to the R&D capabilities, IMAX is considered as unique among its competitors. Buono, A., 2002. 2017. control, IMAX was able to maintain its average service time of 99% for its equipment installed It means building products, services, a brand, and a reputation that attracts consumers continually over time. spending on its advertisement in 2007. This capability consequently enabled the firm to lower its operational costs of film was able to use its patents, existing resources and capabilities such as R&D and partnerships with On the other hand, technology, reputation and culture are the 1.What competitive advantages underlie the success of IMAX? A good business model tight to technology helped them develop to the point they are at right now. 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