Pesteal Analysis: The Pest Analysis Of IMAX

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The main political factor that affects IMAX is the government concern and actions to regulate the entertainment industry regarding their views towards violence and sex in movies. Influential political family has taken action to promote the censorship of the popular media, relating to violence, sex and vulgar language in the industry.
IMAX suffered a significant hit from the recent global downfall, since the entertainment industry is directly correlated to the fluctuation of the economy. In fact, in late 2006-2007 the economy started to decline and the financial crisis arise, this affected IMAX as they experienced a net loss for the two years. In addition, the downfall is derailing the consumers spending power which is convincing consumers to shift to cheaper alternatives. As the ongoing global economic downfall continues, it is the primary economic factor that is denting the profitability of IMAX.
The major social factor that hurts IMAX has been the consumers demographic and trends. Since IMAX heavily relies on their consumers and the profit of IMAX is directly related to the
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For large format film segment, Iwerks is their only rival. However, Iwerks only focus on the ride simulation package, so at the moment the company does not impact IMAX competitive advantage on that segment. In addition to Iwerks, IMAX other competitors are studios such as Pixar/Disney. They impact IMAX films as they are considered well-known brand that are promoting and targeting the same audience as IMAX, families and children.
Threat from substitutes: High Since the development of HD big screen TVs, cheaper home theater projection and sound system, it allows the consumer to enjoy the film in the comfort of their own home. This gives consumer a cheaper or more convenient alternative for their entertainment.
Threat of powerful suppliers:

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