Business Portfolio and Dynamic Capability Development Report for Fantasy Film

This report analyzes the business strategies of Fantasy Film, an animation studio, through BCG, GE-McKinsey, and Synergy Matrix. It also provides recommendations for Business Portfolio and Dynamic Capability Development. The report further discusses opportunities and threats, mobilization of resources, and transformation and reconfiguration of the company.

Business Portfolio and Dynamic
Capability Development Report
Fantasy Film
[Student Name] – [Student Number]

Introduction
• Fantasy Film Business Portfolio
Fantasy Film is a digital animation studio which has created various animated films,
advertising, animation software and animated effects to be used in films. It is an Australia
based company with headquarters in Sydney and operating in Los Angeles, San Francisco
and Brisbane.
Fantasy Films comprises of four business units:
– Fantaspace: It specialises in the digital animation in feature films. With a revenue of
$4.8 billion, they won the Academy Award for the film ‘Slippery Bob’ in the best
animated picture category.
– Advantage: It specialises in the creation of animated advertisements and has an yearly
revenue of $1.9 billion.
– Anisoft: It has the specialization in working in the development of animation software
and has a revenue of $200 million annually.
– DigiFX: It specializes in the creation of special effects for feature films and generates
about $150 million in revenues, annually.
– The report will highlight the business strategies by analysing their different aspects in
BCG, GE-McKinsey, Synergy Matrix. This analysis will help in the development of
recommendation for the Business Portfolio and Dynamic Capability Development.

BCG Matrix
?
Relative Market Share
Market Growth Rate
Anisoft Fantaspace
Digi FX Advantage

GE-McKinsey Matrix
Growth
Competitive strength of
business unit
High Med Low
Industry attractiveness High
Med
Low
Growth
Harvest
Selective Harvest
HarvestSelective
SelectiveGrowth
Fantaspace Anisoft
Advantage
Digi FX

Synergy Matrix
Threshold of acceptance
Misfits
Incoming:
Benefits from belonging
to portfolio
+-
Fits
+
-
Outgoing:
Benefit to portfolio
Altruists
Givers
Parasites
Takers
Adventage
Fantaspace
Digi FX
Anisoft

Business categorisation
BCG
Matrix
GE-McKinsey
Matrix
Synergy
Matrix
Fantaspace Star High Growth Fits
Advantage Cash Cow Medium Selective Givers
Anisoft Question Mark High Selective Takers
DigiFX Dog Low Harvest Misfits

Fantaspace
• Analysis
• Fantaspace is a highly competitive company which has the largest revenue collection
among the four business units.
• The Animation Film market is the rising market prospect with high possibilities in the future.
• It has the maximum market shares as it generates almost $4.8 billion from the total market
of $7 billion, which is roughly 67.14% of the market revenue.
• It is Star in the BCG Matrix
• It is the market leader leaving behind all other competitors.
• It reflects a higher growth in the GE-McKinsey Matrix
• It can be categorized as Fits in Synergy Matrix.
• It is developing in the growth phase in the business cycle.
• Recommendations
• The company should invest more in expansion
• The company should procure more funds for the research and development of new
technology
• It should monitor its growth and development over time periods

Advantage
•Analysis
• Advantage has a medium competitive strength, a low incoming benefit and a very high outgoing benefit in the
previous analysis
• The growth rate is low and the attractiveness is medium in the advertisement of digital animation.
• The company generates a revenue of $1.9 billion of the $2.5 billion market which demonstrates a high
revenue from the market with low growth.
• The company in the BCG Matrix represents the cash cow.
• In the GE McKinsey Matrix the company represents Medium selective
• In the Synergy Matrix it is reflected as the Givers.
• The market is a saturated one with low growth, hence if not developed it can turn into a Dog
• Recommendation
• The priority of the company should be heavy investment and maintain the status of a market leader
• The company should prioritize investments for the R&D which can make innovations and keep the company
ahead in the market dominance.
• The management should develop teams to look into the innovation part of the development
• The company should work in collaboration with other companies.
• It is essential for the managements to prioritize customer needs and develop accordingly.
• The company should a strong management structure.

Anisoft
• Analysis
• Anisoft reflects a high income market, where competition is low and the outgoing benefit is low
• The Digital software has a promising and attractive market.
• It is reflected in the BCG matrix as a question mark.
• It is reflected in the GE McKinsey Matrix as High Selective.
• In the Synergy Matrix it is reflected as Takers.
• It has a good market share with a revenue collection of $200 million.
• The market growth is high but comparatively the market share is low
• The company has the potential to grow in the future
• Recommendations
• The company requires investment in the growing industry to be reflected as a star.
• The company requires to prioritize investment
• The collaboration with Dreamworks can show a brighter future.
• The company needs professional supervision to become a star in the future
• The key aspects include development of new strategies and advanced technologies to
strengthen itself in the business scenario.
• The company can procure money by selling its assets and increase the investment.
• Attracting new customers is also the key to its success in the future.

DigiFX
• Analysis
• DigiFX has a lower income benefit from a lower competition market.
• The market of special effects is no more promising with low growth in the sector.
• In the BCG matrix, it is a dog
• In the GE McKinsey Matrix, it is a low harvest
• In the Synergy Matrix, it is placed in the Misfits
• The company has a market share of 11.53%
• In the market with low growth, it a has also a lower market share
• It has a saturated market.
• Recommendations
• More investments also cannot increase the market
• The company can slowly close down the business as it can eventually incur losses upon the
company
• The market is saturated and it is difficult to compete.
• The company should shift its focus on the other businesses
• The company should dissolve a merge with the other businesses.
• It is high time to sell the business.
• Developing some newer projects can be of some benefit to the company.

Conclusion
Fantasy Film is expertise in digital animated film commercial advertisement and
special effect. The company is an old entity in the market and has huge
experience in the digital animation sector. Investments and expansion can help
the business to grow and develop in the future.
.
• Fantaspace holds the reputation of being the star and is responsible for the
lion’s share of the company’s revenue..
• The Advantage has a great market share in a low growth market and is the
cash cow of the company.
• Anisoft is Question mark, and in the market with a high growth has a lower
market share.
• Digi FX has no future in the market and is a burden to the company.
• The company requires to invest and develop itself for growth and
development. It has to develop new products and services for drawing new
customers and generating more review.

Introduction
• Fantasy Film Dynamic Capability
• The dynamic capability requires to invest and expand to the new
market trends and adapt accordingly to enrich itself.
• Fantasy film is an old player in the animation market and has a
saturated customer base. The company should invest in newer
products and enhance its competencies according to the newer
requirements. The perfect utilization of the resources can help the
company to develop itself and sustain in the future.
• The report explains the primary objectives of the company and its
future strategies which can help the company to grow in the future.
The identification of the processes can be done by the SWOT
analysis (Kajanus, Leskinen, Kurttila and Kangas 2012).

Identify and assess opportunities
• Analysis:
• Strengths: The core competency of Fantasy Film is animation in
film and advertisement. The digital market is an ever growing
one with potential for future developments and has the
competitive advantage over its competitors.
• Weakness: This company shows lack of business dynamics and
capability. The current management structure is an outdated one
which does not have ambition for future endeavors. The
saturated market needs to change and management plays a key
role in the development of the new attitude in the company.

Identify and assess opportunities
• Recommendations
Opportunity :
The dynamic capacity of the company should include its ability to adapt to the current
market trends and develop itself accordingly. Procurement of new knowledge and new
products for attracting newer customers should be the primary objective of the company.
• It can collaborate with Apple.
• It can collaborate with Tesla Motors.
• It can collaborate with Dreamworks and work on the development of new films like the
Slippery Bob which can deliver it good revenues in the future.
• It can collaborate with Amazon to provide its customers an unique buying experience.
Threat :
• The highly competitive market poses a potential threat for the company. The
saturated market structure and the inability of the company to address the
needs of the new customers is a positive threat for the development of the
company.

Mobilise resources
Analysis
• The company needs to restructure its managerial system, in order to properly
utilize the resources.
• The company needs to invest more on the animation film market as it has a
promising future.
• The company can diversify using its animation specialization and catch new
market prospects.
• The company should monitor its activities at every level to understand its own
shortcomings and rectify them.
• The company should collaborate with other companies and create new products
and expand into new markets (Lee, Olson and Trimi 2012).

Mobilise resources
Recommendations
• The company should identify more talented managers who can analyse the true
requirements and design the policies accordingly.
• The company should have more interest in research and development as the
technology is changing everyday and the company needs to remain prepared for
the changes.
• Considering animation to be the primary strength of the company, it should
develop different products based on animation and diversify its market.
• The company should identify the factors that is lagging its business operations
and work to eliminate them in the future.

Transform and reconfigure
Analysis
• The company can create alliances to strategically tackle the innovations and can
allow the employees to gather unique products to pacify the clients’ requirements.
• The company should be ready to adapt to the changes and build the business
strategies accordingly.
• The company should be able to identify the problems by monitoring the
circumstances.
• It should understand the markets and accordingly reconfigure and change itself
accordingly
• It should create unique products in order to enhance the competitive advantage and
bring profits to both the organization and the customers (Kapferer 2012).
• The company can use its potential to develop new products with unique
technological advances.
• The modern world has a potential for the growth of the market for the digital
software. The company should utilize this specialization and use them accordingly.

Transform and reconfigure
Recommendations
• The complete transformation of a business requires a very strong
foundation. It is the responsibility of the management team to
develop a strong foundation in the business (Cummings 2014).
• The management should be open to taking decisions and should
have the authority to develop according to the needs of the
company.
• The company should be able to adapt quickly and develop
contemporary strategies to involve the new strategies and develop
the company.
• The company should focus on continuous improvement
• The organization should deploy resources for desired result.

Conclusion
Fantasy Film Dynamic Capability:
• The company has a huge potential to develop itself for the future
challenges.
• It has a large market share and it should develop itself to grab
more in the future.
• The SWOT analysis shows that the company’s strength, that is
animation, can provide it with immense opportunities to diversify
and gain more market shares.
• The company has to diversify because in the modern age it is
not possible to survive on a particular product

Reference:
Kajanus, M., Leskinen, P., Kurttila, M. and Kangas, J., 2012. Making
use of MCDS methods in SWOT analysis—Lessons learnt in
strategic natural resources management. Forest Policy and
Economics, 20, pp.1-9.
Lee, S.M., Olson, D.L. and Trimi, S., 2012. Co-innovation:
convergenomics, collaboration, and co-creation for organizational
values. Management Decision, 50(5), pp.817-831.
Cummings, T., 2014. Organization Development and Change:
Foundations and Applications. Dynamics of Organizational Change
and Learning, pp.25-42.
Kapferer, J.N., 2012. The new strategic brand management:
Advanced insights and strategic thinking. Kogan page publishers.

Thank you