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Chandni Sud

on 21 April 2010

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Transcript of Pixar

Pixar Animation Studios Group 10:
Jason Schulman,
Richard Song,
Chandni Sud,
Stephen Thomas,
Gabrielle Viens, and

History Pixar Animation Studios started with John Lasseter & George Lucas
Made a small special-effects computer group called Lucasfilm Ltd.
In 1986, Steve Jobs purchased the computer graphics division of Lucasfilm Ltd. For $10 million Established it as an independent company named Pixar co-founded with Dr. Edwin E. Catmull
Pixar was initially intended to be a high-end
graphics hardware developer
Pixar utilized the computer graphic skills in order to create short commercials and short films for various clients.
Led to a contract with Disney to produce a number of computer-animated feature films, which Disney would co-finance and distribute. What is Pixar's Strategy? Differentiation: Renderman
Laid Back Work Environment- Stimulates Creative Thinking
Pixar prides themselves on their high emphasis on quality of the story rather than quantity
Highly talented, creative employees

Pixars Objective: "Combine proprietary technology and world-class creative talent to develop computer-animated feature films with memorable characters and heartwarming stories that appeal to audiences of all ages.” PORTERs FIVE FORCES Bargaining power of customers:
Since tickets are sold a standard price, customers have the ability to influence revenue by picking what movie they are going to watch
Threat of Substitute Products & Services:
Technology is rapidly evolving
Peformance of the movie can reduce ticket sales

Threat of New Entrants:
High Product Differentiation in the industry
High Capital requirement
Difficult obtaining distributer channels Rivalry:
Brand Identity
High Industry Growth

Bargaining Power of Suppliers:
Pixar is its own supplier
Few groups of suppliers
Very important to quality
S.W.O.T. ANALYSIS: STRENGTHS Highly talented Employees
Highly differentiated product
Pixar University (Creativity)
Software: Renderman
Quality of Corporate Leadership
Publically Traded Company
Strong Financials WEAKNESSES Long Development Process
No distribution channels of their own
No marketing of their own OPPORTUNITIES Creating distribution channels
Developing Marketing Team
Developing New Software THREATS Rising, successful competitors
Increasing technology/innovation in rival companies
Pixar's Resources Tangible:
API technology and other advanced software (Renderman)
Pixar University
Talented Employees
Liscensing for Renderman and copyrights

Brand Name/Prestige
Human Capital

Pixar University Over 110 courses offered
Concentrated on Fine Arts
Equivalent to a B.A. in Fine Arts
Continue to take classes throughout Pixar career
Not restricted to just animators, anyone who works at Pixar can take classes
Creative and relaxed environment

4 Stages to Making a Pixar Movies 1. Development, Creating Story Line
2. Pre-Production, Addressing Technical Challenges
3. Production, Making the Film
4. Post-Production, Polishing the Final Product Whats the Problem? In 2004, Pixar and Disney decided to part ways
Pixar lost all of its distribution channels and marketing that Disney offered
Were not able to be as successful as the collaboration with Disney Can Pixar increase output without sacrificing it's quality? Depends on whether the problem occurs during the brainstorming stage or production stage
If it is with the story then Pixar will not be able to increase output because you cannot force creation of great ideas- Pixar focuses a lot of attention on a quality story line
If it is with the production process, increasing employees may reduce the time involved with animating the movie
But...Pixar hires highly talented and creative employees thus increasing employees may not fit their strategy
Pixar only takes ideas from in-house for it's movies Pixar's Firm Structure Solution Top 10 Animated movies Short Clip: For the Birds Functional Structure
Brings together specialisits, decisions are central, and specialists are shared
Disadvantages like communication difficulty and short-term goals have little effect on Pixar DOES PIXAR STILL NEED TO DEPEND ON DISNEY FOR SUCCESS? Pixar has talent and unique well-thought out movies
Disney provides large distribution channels as well worldwide promotion and marketing
Amusement Parks, McDonalds, TV Commericials, etc.

Merger with Disney
Allows Pixar to continue to focus on developing quality movies and Disney to gain revenue and box office hits
Benefits Both Sides
Agree with Pixar: On January 24, 2006, both companies entered into an agreement to merge Pixar with The Walt Disney Company for approximately $7.4 billion in an all-stock deal

Became Effective on May 5, 2006
Future of Pixar Toy Story 3 (2010)
Cars 2 (2011)
The Bear and the Bow (2011)
Newt (2012)
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