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Copy of Case Analysis #26: Pixar

U. of Central Oklahoma, Strategic Management
by

Koe Lio

on 12 March 2013

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Transcript of Copy of Case Analysis #26: Pixar

Pixar 1. vision & overview 2. timeline 3. lanretx 4. internal V. strategy six. recommendation(s) team: ANDREW #insertsarcasticslogan kaydee gladden
mark mclaughlin
benjamin p. baragrey "Pixar's objective is to combine proprietary technological and world-class creative talent to develop computer-animated feature films with memorable character and heartwarming stories that appeal to audiences of all ages" (Pixar, 2011). media synergy
tactical integration
globalization 1979 2012 1991 1986 1995 1997 2006 nerd pixar disney - pixar graphics group DISNEY contract
1 movie DISNEY contract
5 movie agreement DISNEY purchases PIXAR
as wholly owned subsidiary
$7.4 B S.Jobs purchases computer division from LUCAS FILMS, $5 million TOY STORY
1st 100% computer
animated film GENERAL & COMPETITIVE six factors & examples:
1. demographic

2. sociocultural

3. political/legal

4. tech

5./6. economic/global M.P. 5 factors O/T OPPORTUNITIES:

THREATS: global expansión, sequels. quality vs. quantity VALUE CHAIN ANALYSIS + MGMT

+ H.R.

+ TECH rivalry entrants barg. suppliers substitutes barg. buyers M.P. forces PIXAR steve jobs, john lasseter, others - PIXAR UNIVERSITY, slogan "Alienus Non Diutius" or "Alone No Longer."
- top recruits (computer programmers, artists, writers, etc.) proprietary software development, (3):
MARIONETTE: an animation software system used to modeling, animating, and lighting.
RINGMASTER: a production-mgmt software system for scheduling, coordinating, and tracking a computer-animation project.
RENDERMAN: a rendering software system for high-quality, photo-realistic image synthesis. Q: what separates PIXAR? A: tech & ppl S/W STRENGTHS:

WEAKNESSES: - DISNEY --> distribution & sales
- tech & culture - $50 million, personal contribution from S.JOBS
"If i knew in 1986 how much it was going to cost to keep Pixar going, I doubt if I would have bought the company." -- Fortune, Sept. 18, 1995
- production, 5 year process. “We’re gambling on our vision, and we would rather do that than make ‘me, too’ products. Let some other companies do that. For us, it’s always the next dream,” - Steve Jobs, 1984. type: DIFFERENTIATION BRAND IMAGE:


INNOVATION & TECH:


TECH/ART:


DISNEY:


COCA-COLA?


LEADERSHIP MENTALITY:


COMPETITION:


CONCLUSION: DISNEY & PIXAR, negotiations. "household name" *** DON'T OVERLOOK computer programming (algorhythm) an image. Ed Catmull, the President of Pixar and Disney Animation Studios, published a piece entitled “How Pixar fosters collective creativity,” portraying how management figured out the secrets of group genius. Catmull starts his article dispelling the loner myth in strong terms: “Creativity involves a large number of people from different disciplines working together to solve a great many problems…A movie contains literally tens of thousands of ideas.  Depending on one brilliant creator to come up with all of those ideas just wouldn’t make any sense; “every single member of the 200 to 250 person production group makes suggestions. Creativity must be present at every level of every artistic and technical part of the organization,” (Harvard Business Review).  dist & sales.
benefits: intl, economies of scale, protection from rivals, develop customer loyalty. take a deep breath and consider the fact that DISNEY approached PIXAR to produce a product that DISNEY itself was failing to achieve success in. What does that mean? 1987, S.JOBS persuaded JOHN SCULLEY (Pepsi CEO)...
“Do you want to spend the rest of your life selling sugared water, or do you want a chance to change the world?” Dreamworks Animation, Fox, Warner Bros., Disney, Marvel, Sony Pictures Animation, 20th Century Fox, Universal Pictures, Columbia Pictures, Paramount Pictures, nWave Pictures, Nickelodeon Movies, Blue Sky Studios, The Jim Henson Company Inc, Lucasfilm Ltd ANY business leader or firm could learn valuable lessons studying strategic behaviors of APPLE, or PIXAR. (SIDE-BAR) FINANCES DISNEY PIXAR sit down w/ the CEO of DISNEY or PIXAR? ACQUISITION --> maintain culture & mgmt
intangible artistic element
"pitfall" of DIFFERENTIATION. over-compensation for process.
learning curve, 13 straight hits
adverse effect in mass production
SHORT FILMS? historical and culminates personality.
internal value-creation vs. revenue
ice age
CHILDREN
"Charles Barkley" effect. Responsibility as role models
psychological impact vs. adult humor
WALL-E I. II. III. IV. AWWARDS:

26 Academy Awards
7 Golden Globe Awards
3 Grammy's
many others (independant, "shorts," etc.
in 2001, the Academy Award for BEST ANIMATED FEATURE was created, in which PIXAR has won 6
PIXAR has 2 of the 3 animated films to be nominated for Academy Award for BEST PICTURE INFLATION: ticket sales, pricing, employment wages society & familiarity with animated films --> innovation ratings competitors ability to market & produce outsourcing production high low high high high VERTICAL INTEGRATION “Most acquisitions, particularly in media, are value-destroying as opposed to value-creating, and that is certainly has not turned out to be the case here… Disney is the only company with animation in their DNA”  (Dess, Lumpkin, Eisner & McNanara, 2012). quo pro quid
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