the officers or key players described in the case study? If the case study company is
currently in business, list the company’s current CEO, total sales, and profit or loss for the
last year where data is available. Identify key events or phases in the company’s history.
Describe the performance of this company in the industry. Visit the company’s website and
use http://finance.yahoo.com and/or some other financial search engine to find this data.
cited if it is the source of information. If you are not familiar with APA citation, check
out the tutorial APA Guidelines for Citing Sources at the end of the course
ANALYSIS VIA PORTER’S FIVE FORCES MODEL
Analyze the competitive environment by listing the threat of new entrants, the bargaining
power of buyers, the bargaining power of suppliers, the threat of substitute products and
services, and the intensity of rivalry among competitors in the industry
Summarize your key points in a figure.
How does this company create and sustain a competitive advantage? What strategy from
the readings was undertaken by this company? Were they successful? Can all companies
use this strategy? How is the strategy affected by the life cycle in the industry? Remember
to reference Porter’s generic strategies identified in the textbook
Case Study Analysis - Pixar
Background & History
Financial statements of Pixar are not directly available, and regretfully could not be shown in this paper. However, its parent company Walt Disney Company earned hefty $ 8980,000 thousands as its net income in 2017 (Finance Yahoo, 2018).
• Bargaining Power of Suppliers – Though Pixar depends strongly on technology, it has its unique resource of engineering and creative staff that are responsible for creating everything from scratch. Pixar does not even allow scripts originating from outside. This total dependence on its in house resources makes the bargaining power of suppliers considerably low for Pixar (Keller, Parameswaran, & Jacob, 2011).
• Bargaining Power of Customers – This force is also low to moderate, as Pixar has a huge fan following and this loyal customer base helps to generate its high revenues. Such loyal fan base is quite unheard of and this lowers the power of this force as well.
• Threat of New Entrants – This threat is moderate, as the entry barrier to animation industry is quite high due to the heavy investments in technology and talent. What Pixar has achieved over the years, and together with Disney, it is quite difficult for any new entrant to enter this field. But the chances cannot be completely neglected, hence, the power of this force is moderate to low.
• Threat of Substitutes – Pixar is hugely successful due to its uniqueness in terms of technology and quality. Its concepts, quality of animation, technological tools etc cannot be replicated by any other means (Chan-Olmsted & Kang, 2003). Hence, threat of new substitutes is also low in case of Pixar.
• Industry Rivalry – This is high as Pixar faces direct competition from Dream Works and Warner Brothers. However, with Disney acquiring most of the important animation brands, the position of Pixar is only strengthened (Fiascone & Christensen, 2014).
Overall, it can safely be assumed that Pixar’s position in the industry is quite strong and dominant.
Strategy Used by Pixar
Pixar’s success can be attributed to its excellent use of technology and its groundbreaking imagination and innovation. Pixar’s competitive advantage critically lies in its successful merge of imagination with technology guided by Lasseter. Passionate leadership is something Pixar had since the very inception of its idea (Aaker, 2010). First Catmull, who was a visionary, then Jobs who was almost a magician and then Lasseter whose passion for creating unique and unheard of products drives Pixar to its profitability. Differentiation is the key strategy used by Pixar and its management to stand out from the crowd. In a typical differentiation generic strategy, a firm aims to be unique amongst its peers along certain aspects which are valued by its target customers. For Pixar these are – flawless story telling; content to suit all ages; unique concepts; development of in house premium technology all are instrumental in bringing the competitive advantage of Pixar.
Transformational leadership, great passion amongst the management has led Pixar in being successful. It is the dedication and the passion of the Pixar leaders which has helped the company achieve an unique place in the industry. This differentiation strategy utilized by Pixar is very difficult to imitate and hence, cannot be recreated by potential competitors or existing ones. Pixar places immense importance on its human resources and the latter has helped Pixar create and sustain its competitive advantage (Gerdeman, 2012). As with every movie Pixar breaks its own boundaries and achieves beyond the box, it can safely be said that, even with the lifecycle of the industry tending towards maturity, Pixar will continue its streak of success in the future as well. Coco, can be seen as the most recent example, which broke all records and grossed $ 680.6 million in the box office in 2017 (Box Office Mojo, 2018).
Place Order For A Top Grade Assignment Now
We have some amazing discount offers running for the studentsPlace Your Order
Strategies to be Used
Achieving Competitive Advantage
Creation of Ambidextrous Organization Designs
Barker, N., Valos, M., & Shimp, A. (2012). Integrated Marketing Communications. US: Cengage Learning.
Box Office Mojo. (2018). Coco. Retrieved January 29, 2018, from http://www.boxofficemojo.com/movies/?id=pixar1117.htm: http://www.boxofficemojo.com/movies/?id=pixar1117.htm
Chan-Olmsted, S., & Kang, J. (2003). Theorizing the strategic architecture of a broadband television industry. The Journal of Media Exonomics , 16 (1), 3-21.
Fiascone, R., & Christensen, M. (2014). Disney & Pixar - Building a Magic Kingdom of Animation. US: John Wiley & Sons.
Finance Yahoo. (2018). The Walt Disney Company. Retrieved January 29, 2018, from Finance Yahoo: https://finance.yahoo.com/quote/DIS/financials?p=DIS
Gerdeman, D. (2012). Location, Location, Location - The Strategy of Place. US: Harvard Business School Working Knowledge.
Haley, J., & Sidky, M. (2009). Making Disney Pixar Into A Learning Organization. US: Annual American Business Research Conference .
Keller, K., Parameswaran, M., & Jacob, I. (2011). Strategic brand management : Building, measuring and managing brand equity. Delhi: PEarson Education India.
Keller, L. (2009). Building strong brands in a modern marketing communications environment. Taylor Francis Online , 139-155.
Kotler, P., & Keller, K. (2011). Marketing Management. US: Prentice-Hall.
O'Reilly III, A., & Tushman, L. (2004). The Ambidextrous Organization. US: Harvard Business Review.
Paik, K. (2007). To Infinity and Beyond - The Story of Pixar Animation Studios. US: Chronicle Books.
Pixar. (2018). Our Story. Retrieved January 29, 2018, from Pixar: https://www.pixar.com/our-story-1#our-story