MBA501 Report: Fantasy Film Business Portfolio and Capability

This report provides a comprehensive analysis of Fantasy Film, a digital animation studio, examining its business portfolio and dynamic capabilities. The report begins with an introduction to Fantasy Film's four business units: Fantaspace, Advantage, Anisoft, and DigiFX, detailing their revenue generation. It then applies BCG, GE-McKinsey, and Synergy matrices to categorize and assess the strategic position of each unit. The analysis evaluates the competitive strengths, market attractiveness, and market share of each business unit, leading to specific recommendations for investment, innovation, and strategic planning. The report also delves into the concept of dynamic capability, exploring how Fantasy Film can leverage its resources and core competencies to achieve strategic objectives. A SWOT analysis is conducted to identify opportunities and threats, followed by recommendations for mobilizing and transforming resources. The conclusion emphasizes the importance of knowledge sharing, technological advancements, and adaptation for sustained success in the digital film industry. The report references several academic sources to support its findings.

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

Introduction
• Fantasy Film Business Portfolio
– It is a digital animation studio specialized in animated
features films and digital animated advertising and
software.
– It has four business units –
1. Fantaspace – Generates $4.8 billion in revenue.
2. Advantage – Generates $1.9 billion and their important
clients are Amazon, Apple and Tesla Motors.
3. Anisoft - $ 200 million in revenue by building digital
animation software.
4. DigiFX – Generates $150 million in revenue

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
Anisoft
Fantaspace
Digi FX
Advantage

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

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 playing with high competitive strength and
revenue advantages.
• The market of animation film is also very attracting and have
low entry barriers (Rüling and Pedersen, 2010).
• The market share of the company is 67.14% (4.8 billion from 7
billion markets) in the industry.
• According to the business cycle, the company is in its growth
phase.
Recommendations
• Investment should be the first priority of the company.
• Gain competitive advantage through investment in R&D and
innovative technology.
• Make strategic planning using the Academy Award winner and
find new clients and reputation.
• For making creating products, the company should work on a
cross function team (Shin, et al, 2012).

Advantage
Analysis
• The company is playing with medium competitive strength
however, they are lacking in terms of revenue.
• The market of digital animated advertisement has medium
attractiveness and low growth rate.
• The market share of the company is 76% (1.9 billion from 2.5
billion markets) in the industry.
• According to the business cycle, the company is in its mature
phase and due to the low growth, it can be soon to turn into the
Dog category.
Recommendations
• For sustaining competitive advantage, the company need to
invest into the innovation and technology (Chesbrough and
Appleyard, 2007).
• Advantage also need to make a joint venture with other
companies so that the value can be generated.
• The management needs to find the new strategies to make the
business running for a longer period of time.

Anisoft
Analysis
• The company is playing with low competitive strength however, they
are getting an advantage in terms of income benefits.
• The market of digital software is continuously rising and this shows
that there is high attractiveness in the market.
• The market share of the company is 11.11% (200 million from 1.8
billion markets) in the industry.
• According to the business cycle, the company is in its growth phase.
Recommendations
• Heavy and necessary investment needs to be made so that to
become the star in the industry.
• After the agreement with DreamWorks, the company has a potential
to growth.
• It needs superior management attention to come in to the star
category.
• The process of decision making should be decentralised so that to
take a fast decision and ensures creativity (Wong, Ormiston and
Tetlock, 2011).

DigiFX
Analysis
• The company is playing with low competitive strength and low
advantage of revenues.
• The industry of special effect has low growth and market
attractiveness due to advancement in technology.
• The market share of the company is 11.53% (150 million from
1.3 billion markets) in the industry.
• According to the business cycle, the company is in its mature
phase.
Recommendations
• No further investment should be made in the company.
• The parent company should sell this business unit or it will
affect the whole company.
• The necessary knowledge and skilled employees should be
merged to the other business unit.

Conclusion
Fantasy Film is a leading company in the digital film industry through
its various competitiveness strategy like advancement in technology,
special effects and commercial advertisement. In respect to their
business cycle, the company are in its mature stage due to the high
performance of their business units i.e. Fantaspace and Advantage.
The company should take a stand on competitive advantage for
increasing their abilities and they should also combine all their core
competencies including software, animation and special effect.

Introduction
• Dynamic capability is an ability of the business firm to fully utilize
their resources efficiently (O'Connor, 2008). Fantasy Film is in
the maturity stage and to keep their business dynamic capability,
the company need to acknowledge their core competencies and
find out related opportunity within or outside the company.
• Below it will be explained that how Fantasy Film will transform
and seize their dynamic capabilities so that to gain their strategic
objectives with the help of SWOT analysis.