Pixar's Understanding of Industry Critical Success Factors

The assignment discusses the corporate strategy of Pixar, a leader in animated film making industry. It highlights how Pixar understands the critical success factors (CSF) of the industry, including quality of content, team of talented individuals, firm compliance with latest technology, and availability of finance. The company's focus on innovation, talent development through Pixar University, and use of software such as Marionette, Ring master, and Renderman to provide high-quality services are key aspects of its strategy. The assignment also touches upon the impact of changing business environment, competition from firms like Dreamworks and Fox, and the importance of Porter's five forces and resource-based view in understanding Pixar's corporate strategy.

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CORPORATE STRATEGY- PIXAR
INTRODUCTION
 For the firm, it is essential that it must draw an appropriate corporate tactic in order to work in the
competitive business environment.
 This thing has been effectively understood by Pixar and thus, it is constantly giving hits in the
animated feature film making industry.
The above figure shows the growth of animated movies
Pixar is the leader in animated film making industry and its success is evident
from the year of its establishment. In this context, it has been identified that
from the year 1995, firm is giving constant hits in each and every year.
CRITICAL SUCCESS FACTORS
Quality of content
Team of talented individual
Firm compliance with the latest technology
Availability of finance
All these are being regarded as the main critical success factors
(CSF) which enable the firm with regard to attain success in the respective
industry.
 Majority of Pixar’s creative energy goes into story development. For
this task, firm heavily relies on John Lasseter who develops the team of
different individuals before making an animated movie (Sethi, 2012).
 Pixar improves the skills of its artists through training program. Pixar
has its own university where it develops the team of future employees.
HOW DO WELL PIXAR UNDERSTAND THE CSF OF THE INDUSTRY
References
Sethi, S.P., 2012. Multinational corporations and the impact of public advocacy on corporate strategy: Nestle and the infant formula controversy. Springer Science & Business Media.
Hofmann, E., 2010. Linking corporate strategy and supply chain management. International Journal of Physical Distribution & Logistics Management, 40(4). pp.256-276.
Hillier, D., Grinblatt, M. and Titman, S., 2011. Financial markets and corporate strategy (No. 2nd Eu). McGraw-Hill.
HOW DO WELL PIXAR UNDERSTANDS THE CSF OF
INDUSTRY?
 Pixar uses different software such as Marionette, Ring master and Renderman with an aim to give
immense experience of animated movie to its respective buyers.
 The firm obtains its finance through retained earnings. Pixar’s brand image helps a lot in the
circumstances when corporation has to obtain funds through other means such as loan from bank
(Hofmann, 2010).
Porter’s five forces
Resource based view Pixar
RBV contribution in firm current strategic position
development
 Pixar University is playing a critical role as it is helping in terms of creating and
developing the team of such employees which the firm will require in future ( Hillier,
Grinblat and Titman, 2011).
 Innovation is the key of success for Pixar. The firm is applying it in the whole process of
animated movie and creative ideas firm is defeating its competitors.
 The firm has the team of talented and dedicated employees who constantly make efforts
with regard to provide high quality of services to the firm.
This figure showcases the revenue which Pixar has earned through the
films:
2003
2005
2007
2009
2010
$0
$500
$1,000
$1,500
Series1
Year
Revenue
Impact of changing business environment on Pixar
 Pixar has changed itself as per the changing business environment. In this context,
it is assessed that with an aim to get the cost effective advantage many firm are
making the efforts with regard to outsource their project to the country like India
and China where talented individual can be availed by company at affordable
prices. In this regard, it is assessed that Pixar is planning for outsourcing its new
project in India (Sethi, 2012).
 Pixar is facing intense competition from firms such as Dreamworks and Fox. These
firms are forcing Pixar with regard to make use of different latest animation
technologies with an aim to provide high quality of services to the client.
Conclusion
It can be stated that the tactic which firm is using is effective as it is
helping Pixar with regard to attain the competitive advantage in an
effective way.
Value chain analysisRivalry among
competitor is
medium in outside
industry but high in
within the industry
Threat of new
entrant is low for the
company as it
upgrade itself with
new technique
Due to the
availavlity of
immense supplier
in the given
industry bargaining
power of Pixer
supplier is very low
Bargaining power
of buyers is very
high as they have
varied options for
fulfilling thier
movie related need
Threat of subsitute is
high as they have
competetion from
conventional film
mking style
Tangible
Pixar University
and Copy right
Intangible
Innovation and
employees
Firm
infrastructure
Good financial
position
No debt
HRM
Highly skilled
employees
Technological
development
Uses advance
software
General
administration
Do consider
the feedback
of worker
Inboud
and
outbound
logistic
Operation
Uses high
tech
software
Marketing
and sales
Uses own
brand
name
Services General
administra
tionDo
consider
the
feedback
of worker