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Strategy Pixar

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by

Christian Schroeder

on 5 December 2013

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Transcript of Strategy Pixar

Typical office at Pixar Headquarters in Emeryville, CA
Group Case Project- Pixar
Current State
We are now owned by Walt Disney but remain creatively independent
Former Apple CEO Steve Jobs led Pixar and developed a production and distribution Pact with Disney
Steve Jobs passing has left a large void in the company but we will continue our innovative culture
Pixar Consulting
Christian Schroeder
Dom Hamilton
Emily Stevenson
Martin Smith
Nic Nord

Problems Identified
Competitive Position
Differentiation: Casual Ambiguity
Animation technology
Creativity in story telling i.e. John Lasseter
"Pixar's track record has made it one of the world's most successful animation companies."
Alternative Solutions
Skunk Works R&D Program
Scouting Programs/Boosting Diversity
Diversification of Target Market
Alternative #1: Skunk Works
Analysis
An R&D program modeled after Lockheed Martin's Skunk Works
Designated windows of time each weak for self-selected teams to work on any creative project desired.
At the end of the month teams will present their skits using props or drawings
The best groups will win an award and their project will be considered for a future movie
Various costs in resources and wages but is proved to actually increase productivity
Increase job satisfaction
Will not replace Pixar University
Pixar & the Value Chain
Recommendation
Continue to exploit Pixar University and everything it brings the organization as a whole
Take advantage of the 2006 acquisition from Disney and their multinational brand while not letting it detract from individuality and Pixar's unique mission
Capitalize on RBV (Resource-Based View) by focusing on all the valuable resources we have; Human talent, casual work environment, and recognizable brand image
Scouting Programs/Boosting Diversity
Full time Talent Scouts will be deployed to capture the best of the best in technology and creativity
Annual Story Board Competitions
An "A" Team will emerge
A broad variation of people will lead to diversity which is shown to be the most productive of all groups
Diversification of Target Market
Films advance in older market segments
Best Alternative Strategy
Implementing all three solutions is our best strategy
Cost of Implementing
Skunk Works- cost for a full time R&D lab including salaries of creative teams
Scouting- talent scout travel, and cost of acquiring talent
Diversify Target- research into new genre groups
Effect on Stakeholders
Skunk Works- employees part of elite group, better innovation, increased job satisfaction and moral but difficult to justify in down economy
Talent Scout- Increase in diversity, globalization, competition leading to best talent and a buzz about being a part of Pixar
Diversify Target- wider age group of viewers, more market share
Fit with Current Objectives
Skunk Works- allow for creative separation from Disney, will allow mission to be expanded past current technology
Talent Scout- help obtain world class talent
Diversify Target- help to reach mission of appeal to all ages
Threats
All strategies can propose societal consequences if films are not conscience of child friendly content
May cause discomfort of employees fearing loss of job
Will cost the company and will be difficult to justify spending in recession
Technologies may emerge and either become successful or fail
Implementation
We will give resources for employees to begin R&D
Find people to scout talent worldwide
Open story development to all ages and genres
Will allow for continuing creativity
With the passing of Jobs,
we have the potential for problems
within our leadership. Romantic view
vs. External Control Perspective.
Competitive advantage must be
closely monitored to maintain market
share and booming revenues
Long production times for films
means higher risk of competitors
entering the market


The major value-chain activities we need to improve are operations and technology development
The focus is efficiency without sacrificing quality. "One home run is better than two doubles"
Implementation
Hire skilled engineers
Hire scientists
Integrate technological suppliers
Build a facility and combine all of these parts to create a research & development program
Research & Development
Talent Scouting
Hire well established talent scouts
Develop a travel budget and recruiting plan
Bring in and foster new artists and writers
Diversify Target
Research best selling genres
implement research to create new stories and plots
Make movies of different genres
Porter's Five Forces
New Entrants- proprietary technology, brand capital and asset stockpiles
Bargaining Power of Buyers- fairly low but still need to be considered
Bargaining Power of Suppliers- low to none
Threat of Substitutes- Very low
Intensity of Rivalry among Competitors
Lack of dynamic and prestigious leaders - Steve Jobs
Profit Share - Pixar & Disney
Top tier complacency
"Divorce of technology and creativity
Replenishment/replacement of quality employees
Too Automated, loss of personal touch (LUXO)
Pace of production discrepancy
Director delegation
Longevity

New technology makes for more advanced techniques to make full length animated films of all genres including videos for the education of the next generation of children
Full transcript