Pixar and Disney

1853 Words8 Pages
Over the past few decades Walt Disney has dominated family entertainment. However, development of technology has changed the situation and the industry has become competitive. Pixar is a pioneer with its proprietary computer animation technology leading the animated film industry. This means computer-generated effects (CG) have replaced hand-drawn animation, which is Disney’s strength. On the other hand, the collaboration between Disney and Pixar has rejuvenated Disney. This report will firstly explain how the macro environment and industry has changed. It will then analyze the core resources and competencies for Disney and Pixar and, finally, will evaluate the best strategy for Disney to pursue next as the agreement between Disney and…show more content…
Other small studios are reluctant to challenge them directly. This industry requires high investments in capital equipment with high fixed costs. However, competition in the industry is still fierce because of the high return. What are the core resources and competences for Disney? Disney utilized its unique resources and core competencies in response to the competitive market situation. Disney was placed in a focused position by concentrating attention on specific family segments in the entertainment business. Furthermore, Disney used technical skills and experienced employees to continue to innovate animations with family-fun images. This has enabled Disney to sustain its strong culture and identity over years. The reputation and heritage is Disney’s unique resource. Disney evidently implemented Porter’s Value Chain analysis in developing a competitive advantage by delivering value to customers. (Popescu, and Ascalu, 2011)As the environment changes, Disney has adopted GC film to create high quality and innovative animations. Disney has advanced in marketing and sales as it has its own media network to distribute its products and capabilities on the company’s brand name through channels. Media network is a unique resource for Disney. Furthermore, the core competency of cost-cutting strategies in animations makes Disney’s profit remain steady.

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