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Pixar Animation Studios began as a graphic division in 1979. They were known as Lucas Films before they were acquired by Steve Jobs, in 1986. The Walt Disney Company bought Pixar in 2006 for $7.4 billion dollars. Pixar’s CEO is Robert Iger. Rober Iger, also known as Bob Iger he is also the CEO for The Walt Disney Company. Pixar had a successful year in 2017 with their latest movie Coco. The movie made over eight hundred million dollars worldwide. Pixar currently has their Pixar Fest going on at Disneyland from April 13th to September 3rd.
ANALYSIS VIA PORTER’S FIVE FORCES MODEL
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| Supplier Power | ● Self-supplier ● Has talented people within the company ● Rely on the engineers and staff ● Bargaining Power of Suppliers is low |
| Buyer Power | ● Retailers and Theatres buying power is moderate ● Customers are willing to purchase Pixar made films ● Customers enjoy the quality of Pixar films ● Bargaining Power of Customers is low ● Customer of all ages |
| Competitive Rivalry | ● There are a few large firms in the same industry that share the same market as Pixar. ● The competitive challenge in the industry is high. ● Film Production Companies are always looking for a good movie to make and Pixar poses a threat because it is one of the largest firms in the industry. |
| Threat of Substitution | ● Threat of substitution is low. ● Customers look forward to movies released by Disney Pixar ● Possible substitutes are television series, Netflix and movies on tv but doesn’t pose a threat on Pixar |
| Thread of New Entry | ● Threat of New Entry is low ● There too many well-known large firms in the movie industry that it would be difficult for new companies to succeed. ● Pixar would have the competitive advantage when it comes to new entry companies. |
Pixar is one of the film production companies that makes some of the most extraordinary
films in the world. The work that they do is pure genius to say the least. What make this
company tick? How have they been able to sustain many years of success? Part of the reason is
the company culture that makes a big difference with the success of Pixar studios. Its shared
attitudes, language, and behavior that consistently produce in every film they make. In
conjunction with that, is they believe you should care about people first, focus on the purpose
that makes people feel good and Encourage self-expression and diversity of thought.
The strategy that differentiate Pixar is their “Brain Trust”, a collaborative management style
that is based on the of removing the power structure. The four principles that are centered
around Brain Trust are:
- Nobody can override the director
- Peer to peer and filmmaker talking to filmmaker
- Everybody shares in each other’s success
- They all give and take honest notes.
In regard to the Porter 5 forces Analysis, some things that Pixar should always be cognizant
of is Competitive rivalry within the industry such as DreamWorks who does exceptional work,
Bargaining power of suppliers and customers.
Many companies copy the success of others and that’s why so many movies are so similar and not very good. According to Pixar “If you want to be original, you have to accept the uncertainty, even when it’s uncomfortable, and have the capability to recover when your organization takes a big risk and fails” They believe in getting talented people to work effectively with one another, all Pixar can do is construct an environment that nurtures trusting and respectful relationships and unleashes everyone’s creativity. Pixar also believes “Creative power in a film has to reside with the film’s creative leadership.” Their philosophy is creating an environment full of creative people who are supported give them leeway, bet big on them and they all get honest feedback from everyone
Pixar is one of the film production companies that makes some of the most extraordinary
films in the world. The work that they do is pure genius to say the least. What make this
company tick? How have they been able to sustain many years of success? Part of the reason is
the company culture that makes a big difference with the success of Pixar studios. Its shared
attitudes, language, and behavior that consistently produce in every film they make. In
conjunction with that, is they believe you should care about people first, focus on the purpose
that makes people feel good and Encourage self-expression and diversity of thought.
The strategy that differentiate Pixar is their “Brain Trust”, a collaborative management style
that is based on the of removing the power structure. The four principles that are centered
around Brain Trust are:
- Nobody can override the director
- Peer to peer and filmmaker talking to filmmaker
- Everybody shares in each other’s success
- They all give and take honest notes.
In regard to the Porter 5 forces Analysis, some things that Pixar should always be cognizant
of is Competitive rivalry within the industry such as DreamWorks who does exceptional work,
Bargaining power of suppliers and customers. Pixar Animation Studios began
