IMAX (A): The Introduction of Digital Media Re-Mastering Technology SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of IMAX (A): The Introduction of Digital Media Re-Mastering Technology
Case A reviews the history of IMAX Corporation from its founding until the introduction of Digital Media Remastering (DMR) technology in 2002. Since its founding, IMAX had struggled to achieve sustainable, profitable growth. The case explores IMAX's difficulties in attracting movie studios and theatres to its platform. Case B describes the changes in the ecosystem implemented after DMR, and the resulting performance.
Authors :: Metin Sengul, Alexander T. Venino, Javier Gimeno
Swot Analysis of "IMAX (A): The Introduction of Digital Media Re-Mastering Technology" written by Metin Sengul, Alexander T. Venino, Javier Gimeno includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Imax Dmr facing as an external strategic factors. Some of the topics covered in IMAX (A): The Introduction of Digital Media Re-Mastering Technology case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the IMAX (A): The Introduction of Digital Media Re-Mastering Technology casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, digital marketing is dominated by two big players Facebook and Google, wage bills are increasing, increasing government debt because of Covid-19 spendings, technology disruption, competitive advantages are harder to sustain because of technology dispersion,
increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of IMAX (A): The Introduction of Digital Media Re-Mastering Technology
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in IMAX (A): The Introduction of Digital Media Re-Mastering Technology case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Imax Dmr, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Imax Dmr operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of IMAX (A): The Introduction of Digital Media Re-Mastering Technology can be done for the following purposes –
1. Strategic planning using facts provided in IMAX (A): The Introduction of Digital Media Re-Mastering Technology case study
2. Improving business portfolio management of Imax Dmr
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Imax Dmr
Strengths IMAX (A): The Introduction of Digital Media Re-Mastering Technology | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Imax Dmr in IMAX (A): The Introduction of Digital Media Re-Mastering Technology Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Imax Dmr in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Imax Dmr is one of the leading recruiters in the industry. Managers in the IMAX (A): The Introduction of Digital Media Re-Mastering Technology are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Imax Dmr is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Imax Dmr is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in IMAX (A): The Introduction of Digital Media Re-Mastering Technology Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Imax Dmr is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Strategy & Execution industry
– IMAX (A): The Introduction of Digital Media Re-Mastering Technology firm has clearly differentiated products in the market place. This has enabled Imax Dmr to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Imax Dmr to invest into research and development (R&D) and innovation.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Imax Dmr digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Imax Dmr has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Cross disciplinary teams
– Horizontal connected teams at the Imax Dmr are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Diverse revenue streams
– Imax Dmr is present in almost all the verticals within the industry. This has provided firm in IMAX (A): The Introduction of Digital Media Re-Mastering Technology case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Organizational Resilience of Imax Dmr
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Imax Dmr does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Imax Dmr has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in IMAX (A): The Introduction of Digital Media Re-Mastering Technology HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Imax Dmr has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in IMAX (A): The Introduction of Digital Media Re-Mastering Technology Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Successful track record of launching new products
– Imax Dmr has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Imax Dmr has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Weaknesses IMAX (A): The Introduction of Digital Media Re-Mastering Technology | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of IMAX (A): The Introduction of Digital Media Re-Mastering Technology are -
Slow decision making process
– As mentioned earlier in the report, Imax Dmr has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Imax Dmr even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Slow to strategic competitive environment developments
– As IMAX (A): The Introduction of Digital Media Re-Mastering Technology HBR case study mentions - Imax Dmr takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High cash cycle compare to competitors
Imax Dmr has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
No frontier risks strategy
– After analyzing the HBR case study IMAX (A): The Introduction of Digital Media Re-Mastering Technology, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study IMAX (A): The Introduction of Digital Media Re-Mastering Technology, it seems that the employees of Imax Dmr don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Imax Dmr is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study IMAX (A): The Introduction of Digital Media Re-Mastering Technology can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Imax Dmr needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Need for greater diversity
– Imax Dmr has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Capital Spending Reduction
– Even during the low interest decade, Imax Dmr has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the IMAX (A): The Introduction of Digital Media Re-Mastering Technology HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Imax Dmr has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study IMAX (A): The Introduction of Digital Media Re-Mastering Technology, in the dynamic environment Imax Dmr has struggled to respond to the nimble upstart competition. Imax Dmr has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities IMAX (A): The Introduction of Digital Media Re-Mastering Technology | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study IMAX (A): The Introduction of Digital Media Re-Mastering Technology are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Imax Dmr is facing challenges because of the dominance of functional experts in the organization. IMAX (A): The Introduction of Digital Media Re-Mastering Technology case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Imax Dmr to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Imax Dmr to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Imax Dmr can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, IMAX (A): The Introduction of Digital Media Re-Mastering Technology, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Imax Dmr can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Developing new processes and practices
– Imax Dmr can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Leveraging digital technologies
– Imax Dmr can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Creating value in data economy
– The success of analytics program of Imax Dmr has opened avenues for new revenue streams for the organization in the industry. This can help Imax Dmr to build a more holistic ecosystem as suggested in the IMAX (A): The Introduction of Digital Media Re-Mastering Technology case study. Imax Dmr can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Imax Dmr can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Imax Dmr can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Imax Dmr can use these opportunities to build new business models that can help the communities that Imax Dmr operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Imax Dmr to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Imax Dmr in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Imax Dmr can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Imax Dmr can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Threats IMAX (A): The Introduction of Digital Media Re-Mastering Technology External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study IMAX (A): The Introduction of Digital Media Re-Mastering Technology are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Imax Dmr with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Stagnating economy with rate increase
– Imax Dmr can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Imax Dmr business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Imax Dmr needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study IMAX (A): The Introduction of Digital Media Re-Mastering Technology, Imax Dmr may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Technology acceleration in Forth Industrial Revolution
– Imax Dmr has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Imax Dmr needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Environmental challenges
– Imax Dmr needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Imax Dmr can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Imax Dmr in the Strategy & Execution sector and impact the bottomline of the organization.
Increasing wage structure of Imax Dmr
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Imax Dmr.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Imax Dmr can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study IMAX (A): The Introduction of Digital Media Re-Mastering Technology .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Imax Dmr in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Weighted SWOT Analysis of IMAX (A): The Introduction of Digital Media Re-Mastering Technology Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study IMAX (A): The Introduction of Digital Media Re-Mastering Technology needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study IMAX (A): The Introduction of Digital Media Re-Mastering Technology is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study IMAX (A): The Introduction of Digital Media Re-Mastering Technology is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of IMAX (A): The Introduction of Digital Media Re-Mastering Technology is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Imax Dmr needs to make to build a sustainable competitive advantage.
