Business Portfolio and Dynamic Capability of Fantasy Film - MBA501

This report provides a comprehensive analysis of Fantasy Film's business portfolio, encompassing its various business units like Fantaspace, Advantage, Anisoft, DigiFX, and Yoda Knows. It utilizes BCG, GE-McKinsey, and Synergy matrices to evaluate each unit's competitive strength, market attractiveness, and potential synergies. The report then offers strategic recommendations for each business unit, focusing on investment, innovation, and market expansion. Furthermore, it assesses Fantasy Film's dynamic capabilities, including its ability to identify opportunities, mobilize resources, and transform strategic assets, offering recommendations to enhance these capabilities. The analysis emphasizes the need for the company to leverage its core competencies, adapt to market trends, and foster a flexible organizational structure to sustain its competitive advantage in the digital film industry.

Dynamic Strategy and Disruptive
Innovation

Overview
Business Portfolio of Fantasy Film
Fantasy Film is a digital animatronics workspace offering many services and products
such as gaming, animated films and digital animated software and digital advertising.
Fantasy Film business units are elaborated below –
1. Fantaspace – This business units builds digital animated feature films and
creates $4.8 billion in profit.
2. Advantage – Creates $1.9 billion and their significants users are Apple,
Amazon, Apple and Tesla.
3. Anisoft - $ 150 million in profitwith the help of developing digital animatronics
applications.
4. Yoda Knows – Creates $ 200 million with the help of attracting variety of
gamers.
5. DigiFX – Creates $300 million in profit.

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

GE-McKinsey Matrix
Growth
Business unit competitive
strength
High Med Low
Attractiveness of
Industry
High
Med
Low
Growth
Harvest
Selective Harvest
HarvestSelective
SelectiveGrowth
Digi FXFantaspace
Anisoft
Advantage
Yoda
Knows

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

Categorization of various business
GE-McKinsey
Matrix
BCG
Matrix
Synergy
Matrix
Advantage Medium
Selective Cash Cow Givers
Fantaspace High Growth Star Fits
DigiFX High Selective Question Mark Takers
Anisoft Low Harvest Dog Misfits
Yodo Knows High Medium Question Mark Takers

Fantaspace
Analysis
• In Fantaspace, the company is gaining revenue advantage and
high competitive strength.
• In animation film market, there are low entry barrier that attracts
various business firms to the industry.
• The organisation standouts in its growth stage considering the
business life cycle.
• The organisation is focusing on becoming aggressive market
leader.
Suggestions
• The company need to more invest in their different business
portfolio.
• With adopting innovative technology, the organisation can attain
competitive edge in the industry.
• Explore new clients with strategic planning with the help opf
Academy Award winner.
• Emphasis cross function team for building out creative products
(Barczak, Lassk & Mulki, 2010).

Advantage
Analysis
• The company is not earning such good revenue, however, they
are having well medium competitive strength.
• There is low growth rate in digital animated advertisement
market. In addition, there is also medium attractiveness in the
market.
• It is found that this division is its maturity phase considering
business cycle and soon can be turned out to dog quadrant as
of low growth.
Suggestions
• It is important for the organisation to capitalize more in
technological advancement and innovation for gaining
competitive advantage (Dahlander & Gann, 2010).
• More value can be created with joint venture.
• To sustain business for longer run, management is required to
proactively create various necessary strategies.

Anisoft
Analysis
• To this business unit, there is low competitive strength for this
business unit and also there is low outgoing and incoming
benefits.
• There is low growth and attractiveness in digital animation
software.
• Considering business life cycle, this unit is in maturity stage.
Suggestions
• Disinvestment is necessary so that to capitalize into other
business units.
• By making contract with DreamWorks, the growth potential of
the organisation has been increased.
• The administration may plan strategy as with the agreement
with DreamWorks, there may be some potential to growth.
• To emphasize on creative and make out better decisions, there
is need for decentralisation of authority (Vaara & Tienar, 2008).

DigiFX
Analysis
• There is medium competitive strength for this business unit and
low outgoing benefits, however, income benefits are very high.
• There is high growth and medium attractiveness in special
effects sector.
• This unit is in growth stage as per the business life cycle.
Suggestions
• Needed more investment in this business unit.
• Fantasy Film need to focus on this business unit so as to
diversity it to raise income benefits.
• The expertise and competencies of employees needs to be
merged in more effective way.

Yoda Knows
Analysis
• There is High competitive strength for this business unit and
very low outgoing benefits, however, income benefits are high.
• There is high growth rate and also high attractiveness in gaming
segment.
• This unit is in growth stage as per the business life cycle.
Suggestions
• The company needs to strength this business unit with more
capitalisation.
• To attract variety of gamers, the company can out various
campaigns with pricing in the gaming community.
• Free samples of the games should be given to top community
gamers so as to fix the bugs prior to official launch.

Summary
In the digital film industry, Fantasy Film is one of the leading player with
its various diversified business units. The company is investing well in
latest technology that helps the company to gain competitive edge in
the market. Considering business life cycle, the company comes under
maturity phase because of its high performance of the business units
such as Advantage and Fantaspace.
To further ensure their sustainability, it is important for the company to
collaborate all their core competencies of the business units and make
a competitive stand in the market.

Overview
• Any business firm efficiently utilizing their resources represents
dynamic capability (Agarwal & Selen, 2009). It is necessary for
Fantasy Film to explore their core competencies to ensure their
dynamic capability and also search for external opportunities in
various related industry.
• With the help of SWOT analysis, it is elaborated below that how
the company attained their strategic goals by seizing dynamic
capabilities.

Recognize and appraise opportunities
• Strength – High growth and attractiveness in special
effects, digital advertising and gaming. However, it is not
sufficient to gain sustainability
• Weakness – The organisation structure in Script Doctor
Case in centralised as of lack of dynamic capability. It can
be raised if the company resolve the organisation structure
issue.

Recognize and appraise
opportunities
Suggestions
Opportunity – To the business firm, the dynamic capability is their
resource base. There are various opportunities for the various
business units of Fantasy Film if they collaborate with Tesla,
DreamWorks, Amazon and Apple.
Threat – The company current market knowledge will not be
sufficient to gain competitive edge in the industry. It is important for
the company to search for new business units like Yoda Knows.

Mobilization of resources
Analysis
• To gain competitive advantage and value, Fantasy film is
required to collaborate with other firms.
• The company should transfer their resources from one business
units to other to make best out it (Kraaijenbrink, Spender &
Groen, 2010).
• To ensure future sustainability, the market of gaming and digital
advertising should be seized.
• The company is required to takeout more real time decisions by
improving their managerial structure.

Mobilization of resources
Recommendations
• To ensure their sustainability of business life cycle, the
management of the firm need to adopt tools like six sigma so as
to save various costs and eliminate waste (Boone & Hendriks,
2009).
• At every stage of the organisation, the management need to
develop cross function team.
• Adopt future and current trend by focusing on disruptive
technology in the market.

Transform and reconfigure
Analysis
• Need to modify their firm structure and build up a solid
foundation.
• The business culture is required to be more flexible to fit with
dynamic environment variables.
• With the help of developing unique products, the organisation
can attain competitive edge in the industry.
• By emphasizing on their core competencies, the company can
increase their potential to develop new products backed up by
advanced technology.

Transform and reconfigure
Suggestions
• TQM approach can be followed by management for the purpose
of constant improvements.
• Fantasy Film need to fetch up innovative and creative ideas by
decentralisation of their organisation structure at all phases.
• With effective integration of capabilities and culture, the business
of Fantasy Film can be stand out on solid base.

Summary
• The company can achieve their goal of sustaining dynamic
capability through transformation of knowledge and competent
staff internally.
• The clients expectations can be effectively fulfilled if the
company proactively analyse latest trends in the industry and
exploit various opportunities.
• The organisation should possess that capability which help
them to shift their resources to the other business units so as to
do better than their rivals in the industry.

References
• Agarwal, R., & Selen, W. (2009). Dynamic capability building in service value
networks for achieving service innovation. Decision sciences, 40(3), 431-475.
• Barczak, G., Lassk, F., & Mulki, J. (2010). Antecedents of team creativity: An
examination of team emotional intelligence, team trust and collaborative
culture. Creativity and Innovation Management, 19(4), 332-345.
• Boone, C., & Hendriks, W. (2009). Top management team diversity and firm
performance: Moderators of functional-background and locus-of-control
diversity. Management science, 55(2), 165-180.
• Dahlander, L., & Gann, D. M. (2010). How open is innovation?. Research
policy, 39(6), 699-709.
• Kraaijenbrink, J., Spender, J. C., & Groen, A. J. (2010). The resource-based view: a
review and assessment of its critiques. Journal of management, 36(1), 349-372.
• Vaara, E., & Tienar, J. (2008). A discursive perspective on legitimation strategies in
multinational corporations. Academy of Management Review, 33(4), 985-993.