MBA501 - Business Portfolio and Dynamic Capability: Fantasy Film

This presentation analyzes Fantasy Film, a digital animation studio, and its four business units: Fantaspace, Advantage, AniSoft, and DigiFX. The analysis utilizes BCG, GE-McKinsey, and Synergy matrices to evaluate each unit's performance and market position, considering revenue, market share, and growth potential. Recommendations are provided for strategic management, focusing on investments, diversification, and innovation. The presentation also assesses the company's dynamic capability, focusing on its ability to identify opportunities, mobilize resources, and transform assets, with corresponding recommendations for improvement. The goal is to enhance the company's ability to adapt to market changes and sustain its competitive advantage.

Dynamic Capability and
Business Portfolio
Development
BUSINESS ANALYSIS AND RECOMMENDATIONS

Introduction
 Fantasy Film –Overview
 The company is a specizlied digital animation studio
 Specialized in
 Animated Feature Films
 Animated Advertisement
 Digital Animation Software
 Digital Special Effects
 Headquarter -> Sydney
 Production facilities -> Brisbane, San Francisco and Los Angeles.

Introduction (cont.)
 Fantasy Films have following four business units
 Fantaspace :
 Specializes in digital animation feature films.
 Revenue: $4.8 billion
 Academy Award for best animated feature film “Slippery Bob”.•
 Advantage :
 Specializes in digitally animated advertisement
 Revenue: $1.9 billion.
 Clientele: Amazon, Tesla Motors, and Apple.

Introduction (cont…)
 Anisoft :
 Specializes in digital animation software
 Revenue: $200 million.
 Clientele: DreamWorks is a client subscriber.
 DigiFX :
 Specializes in special effects for live action feature films.
 Revenue: $150 million.
 Contracted for digital special effects work for ‘AquaMan’.

BCG Matrix Analysis

GE-McKinsey Matrix

Synergy Matrix Evaluation

Business Profile Overview

Analysis and
Recommendatio
ns

Fantaspace
 Analysis
 Possess high competitive strength
 Potential for incoming and outgoing benefit in business development.
 Animation film market is highly attractive with tremendous growth
 Revenue: approximately 4.8 billion out of the 7 billion Market (67.14%) of the respective
industry
 BCG Matrix: Star
 A potential market leader
 GE McKinsey Matrix: High growth
 Synergy Matrix: Fits
 Promising growth in recent cycle.

FantaSpace - Recommendations
 Prioritize in investments in following domains:
 R&D
 Innovation Technology
 Training Skilled employees
 Innovation and Creativity
 Benchmark and compare market share and growth periodically with competitors:
 Use Academy Award as a competitive edge and for promotional purposes for
attracting new clients and develop reputation.
 Promote the development of cross functional teams for diversified product and
service developments.

Advantage - Analysis
 Possess medium competitive strength
 low incoming and very high outgoing benefit for business development
 Digitally animated advertisements for TV and internet has comparatively lower growth
rate and mediocre attractiveness for consumers
 Revenue $1.9 billion from 2.5 billion Market (76%)
 This shows that it yielded high margin in low growth market.
 BCG Matrix: Cash Cow.
 GE McKinsey Matrix: Medium Selective
 Synergy Matrix: Givers
 The analysis reveals that the company has matured and may turn into a Dog because
of the lower growth rate in overall industry.

Advantage - Recommendations
 It must be kept at the second number for investment priority.
 The company should invest in:
 Innovation and technology
 Diversification of products and services
 The company should aim for
 Sustaining in the market by developing competitive edge
 Introduce new services
 Maintaining the production level
 Create value by collaborating with other companies
 Focus on newer business strategy
 Increase clientele

AniSoft - Analysis
 low competitiveness
 very high incoming and low outgoing benefit.
 Digital software development domain has high growth and high attractiveness in the
global market.
 Revenue and Market Share: 11.11% market share ($200 million out of $1.8 billion).
 BCG matrix: Question Mark
 GE McKinsey Matrix: High Selective
 Synergy Matrix: Takers
 This reveals:
 Low market share in a potentially high growth market.
 The company is at the ‘growing’ stage in business cycle.

AniSoft - Recommendations
 They need to invest to increase their growth and chances of sustainability.
 DreamWorks contract may increase their reputation and growth rate
 Needs vigilant strategies, managers and supervisors to promote and
develop business.
 Look out for diversification of services
 Look out for more opportunities
 Increase clientele and subscribers
 Improve decision making process with decentralization.
 Invest in innovation and creativity

DigiFX - Analysis
 Possess low competitive
 low incoming and low outgoing benefit.
 The Special effect industry has lower growth along with lower attractiveness within the
market.
 Market Share and Revenue is 11.53% market share which is $150 million from 1.3
billion industry
 BCG matrix: Dog
 GE McKinsey Matrix: Low Harvest
 Synergy Matrix: Misfits
 The analysis reveals that it has lower market share in a low growth market.
 Business Cycle Stage: Matured and sustaining

DigiFX - Recommendations
 Not recommended for further investments
 Cash may be trapped if not lost.
 Company should either sell off, or may consider collaborations for
improved sustainability in future.
 Diversify the business domain.
 Transfer or cross-refer the skilled employees to other business to secure
their employments and improve their retention chances.

Conclusion
 Fantasy Film is a sustaining business with a potential to growth tremendously.
 Company has matured and is enjoying a good reputation with potentially high
revenue from all four sub-businesses.
 However, they need to invest more on innovation and creativity to sustain
future competition.
 For this purpose, they may:
 Sell off or integrate DigiFX with other businesses
 Diversify their services and products
 Invest in more skilled employees
 Conduct business analysis for future trends and opportunities.

Dynamic
Capabilities –
Fantasy Film

Introduction
 Dynamic Capability can be defined as:
 “The capacity of an organization to purposefully create, extend, or
modify its resource base” (Helfatet al.,2007).
 Fantasy Film – Matured Business
 For becoming a market leader – identify and understand core
competencies, and harness more opportunities
 Keep transforming and upgrading to sustain future pressure.
 Aim: the section with analyse and recommend how the business can
improve its dynamic Capabilities.

Identification and Assessment of
Opportunities
 Analysis
 Matured Business with four sub-businesses:
 Fantaspace-digital animation film
 Advantage – Digital animated advertisement
 DigiFX – special effect for live action
 Anisoft – digital software development
 Strengths
 Core competency – Animation and digital advertisement
 Must invest more in digital software development
 Must identify competitive edge!

Cont…
 Weaknesses
 Lack of business dynamics
 Less effective managerial structure
 Lack of competencies in senior management teams
 Time bound as well as Funds bound.

Recommendations
 Opportunities
 Collaborate with more companies to improve value and diversification of portfolio.
 Possible collaborations:
 Apple Inc. for development of applications and virtual reality.
 Tesla Motors for simulations and automations.
 DreamWorks for robot and automated developments
 Amazon for hologram technology
 Threats and Risks
 The market is highly competitive and rapidly transforming
 The threat of new entrants is very high

Mobilization of Resources
 Analysis
 Problematic managerial structure
 Inability to seize the potential market
 Must develop cross functional competent teams
 Must collaborate and develop more partnerships
 Should remain dynamic and avoid centralization of decision making,

Conclusion
 The company CAN sustain Dynamic Capability
 Through resource base by sharing, transferring knowledge, hiring
skilled employees and innovated technology
 strengths in digital animation
 It could develop its core competency in this domain,
 Company should has ability to sense the new trend in market
 Mobilize, Transform and upgrade the competencies to create and
maintain competitive edge.

References
 Sarma, H., Porzel, R., & Malaka, R. (2017). A step toward automated
simulation in industry. In Dynamics in Logistics (pp. 99-105). Springer,
Cham.
 Zhou, T. (2018). Strategies on Optimizing the Development of China’s
Animation Industry.