Imax Case Analysis

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 In fact, during the year ended December 31, 2013, 54.0% of IMAX’s gross box-office from IMAX DMR films was generated in international markets, which was the first time in IMAX’s history that international gross box-office exceeded gross box-office from the United States and Canada (Refer to figure ____ for geographic distribution).  In terms of CCC, AMC Entertainments (IMAX’s largest competitor) has the best CCC. In fact, when comparing with all the other competitors, IMAX has the highest CCC (which is not a good indication for operating cash flow). IMAX should aim to achieve negative CCC if they want to be successful in their BRIC expansion. If IMAX continues with the current CCC they will have to deal with potential operating cash flow issues. Cash flow problems can seriously hinder IMAX’s expansion process and lead to managing problems in the domestic markets. For IMAX the most optimum way to improve their CCC is to pay A/P slower; they can assert their strategic dominance with the suppliers and use this to their advantage to improve their CCC. Furthermore, they are also slower in collecting their A/R and this is dangerous. If IMAX’s accounting department is overloaded they should consider outsourcing collection of A/R account to a different…show more content…
Whereas in Russia and China, consumers were willing to pay as high as $80 for a movie ticket. Additionally, IMAX will have to account for political, economic and social instability; BRIC nations being developing countries, IMAX will have to be very cautious about these factors while doing business there. Few of other risks are adverse changes in monetary and/or tax policies, difficulties in staffing and managing foreign operations, inflation, and poor recognition of intellectual property

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