Strategic Management - Pixar - Success

4064 Words Apr 27th, 2013 17 Pages
------------------------------------------------- Newcastle Business School
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Assignment: Strategic Management and Leadership

Table of contents
Question 1 1.1 Introduction 3 1.2. External analysis of Pixar Animation Studios 3 1.2.1. Macro environment 3 1.2.2. PESTEL-Analysis 3 1.2.2.1. Political factors 3 1.2.2.2. Economic factors 4 1.2.2.3. Social factors 4 1.2.2.4. Technological factors 4 1.2.2.5. Environmental factors 4 1.2.2.6. Legal factors 4 1.2.2.7. Conclusion 4 1.3. Internal analysis of Pixar Animation Studios 5 1.3.1. Principle of Innovation 5 1.3.2. Business Culture 5 1.4. SWOT-Analysis of Pixar Animation Studios 6 1.4.1. Strengths 7
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1.2.2.3. Social factors
The demographics of the population that like animation encompasses baby boomers, adults and large numbers of children alike, leads to an improvement in the revenue and exposure for the animation industry (See Exhibit 1 for Percentage of total births). Therefore the social factors are also favorable.

Exhibit 1: Percentage of total births

1.2.2.4. Technological factors
The technological factors in the animation industry are not really favorable. Though there are several supportive technologies, there is constant rapid change, resulting in quickly obsolete technologies. Consequently, keeping up with the dynamism of animation technologies becomes difficult.

1.2.2.5. Environmental factors
Environmental factors are rarely involved in the case of the animation industry. However, electronic waste and its disposal, though not directly influential, can still be brought up as a potential issue in the next decade.

1.2.2.6. Legal factors
There are several legal factors that are involved in the animation industry. This includes licensing, copyrights, or patents. It is essential for an animation firm to ensure compliance with these factors to avoid facing any potential issues. But if it fails to do so then further problems are to be expected.

1.2.2.7. Conclusion
To conclude, Pixar has many opportunities that can be explored, in both the global and local markets. There is a lot of potential for
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