Fantasy Film Business Portfolio and Dynamic Capability Development Report

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

Introduction
Fantasy Film Business Portfolio
•The study seeks to address dynamic strategies and disruptive innovation that
have been applied by the Fantasy Film Company for its survival in the
competitive film industry.
•Fantasy Film is a digital animation studio with its headquarters in Sydney.
Besides Sydney, the company has other production facilities in Los Angeles,
San Francisco and Brisbane.
•Fantasy Film operates four business units each serving a differentiated market
segment. The business units are Fantaspace, Advantage, Anisoft, and DigiTX.
•Each business unit has its managerial structure which makes business and
investment decisions.
•The study is divided into two parts namely: Portfolio analysis and Dynamic
Capabilities.
Portfolio analysis addresses the performance aspect of the business units
and the Company in general.
Dynamic capabilities address how well the company can apply its resources
to gain a competitive advantage in the market.

Portfolio Analysis: Introduction
• Portfolio analysis refer to analysing an organisation’s product or unit
mix to establish an optimum method of allocating resources.
• Two measures of portfolio analysis are market share and market
growth rate.
• Portfolio analysis will help in determining which business unit
Fantasy Film should;
 Maintain at its current state,
 Invest more resources into,
 Dispose of by selling out.
• The portfolio analysis will be completed using three analysis
techniques;
 BCG Matrix
 GE-McKinsey Matrix
 Synergy Matrix

BCG Matrix
?
Relative Market Share
Market Growth Rate

GE-McKinsey Matrix
Growth
Competitive strength of
business unit
High Med Low
Industry attractiveness High
Med
Low
Growth
Harvest
Selective Harvest
HarvestSelective
SelectiveGrowth

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