Pixar Animation Studios Scott A. Treloar Dr. Gary Rodgers Florida SouthWestern State College November 23, 2014 Current Situation and Industry Information • About Pixar Leading animation studio in the world. 7 Oscars for Best Animated Film. Toy Story was the first computergenerated full-length feature film. Toy Story 3 first animated film to gross over $1 Billion! • About the Animated Film Industry Top Competitors include Pixar/Disney, Dreamworks, Fox, and Blue Sky Studios. Current Problems • Production • How does Pixar maintain its current success? • How will Pixar produce more films without losing quality? • Competition • How does Pixar maintain competitive advantage as the market sees new entrants? Strategic Analysis VRIS Framework for Sustained Competitive Advantage. • Is it Valuable? Yes. – Creativity + Technology = Box Office Success! – Quality > Quantity = Consistent Success! • Is it Rare? Yes. – Pixar’s greatest asset is its talent, which is in limited supply. – Constant education and innovation keep Pixar in front of competition. Strategic Analysis VRIS Framework for Sustained Competitive Advantage (continued) • Is it Imitable? Yes, but with difficulty. – Pixar’s storytelling is difficult to imitate. – Pixar’s computer animation is difficult to imitate. • Animation that creates more lifelife texture, backgrounds movement, and luminosity. • Is it Substitutable? Yes, but with difficulty. – Pixar’s joint-effort with Disney give it additional resources and talent, making substitution tough. – New software program creates more animation to be produced with fewer artists and in quicker time. Alternative Solutions Production • Expand Pixar University to Develop New Talent and More Talent. • Expand Relationship with Disney Animation Studio (and Disney/ABC/ESPN) and Share Knowledge and Resources (i.e. Tangled). • Continue to Develop Innovative Technology to Increase Production. Competition • Expand Animation Offerings to New Demographics. Recommendations Expand Pixar University to become an actual animation college that trains more than just Pixar employees. Learn from Disney – Go Global with the storytelling and reach new demographics. Learn from competition (i.e. Shrek) – tell stories that will appeal to an older demographic, too. Spend more $$$ on R&D and innovate more, sooner. References Dess, G. G., Lumpkin, G. T., Eisner, A. B., & McNamara, G. (2012). Strategic Management: Text and Cases (6th ed.). New York, NY, USA: McGraw Hill. Retrieved October 24, 2014 Hoovers. (2014). PIXAR. Retrieved November 23, 2014, from Hoovers.com: http://subscriber.hoovers.com.db07.linccweb.org/H/company360/overview.html?companyId=46451000000 000 Pixar. (2014). About. Retrieved November 23, 2014, from pixar.com: http://www.pixar.com/about