3SWOT ANALYSIS
To understand Pixar’s environment and its strategical move of merging with Disney, a SWOT analysis was performed on Pixar as an independent company.
Strengths
The core competencies the company were creativity, technological innovation and strong leadership. These competitive advantages allowed the company to differentiate itself and successfully get together with reput subject company like Disney to strengthen its own grunge name (Datamonitor, 2004, p.5-6).
Weaknesses
One weakness was its inability to undertake the pecuniary risks for huge projects such as the production of a uncut computer shake feature film. Pixar also lacked marketing follow up and distribution strategies to effectively r distributively its audience (Datamonitor, 2004, p.6-7).
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Opportunities
Pixar could collaborate or partner with a distribution company so that each company could focus on what they did best. Care must be taken that this does not limit Pixar’s potential growth. For example, the initial distribution agreement with Disney limited Pixar in its distribution methods and the apportionment of its marketing budget. Disney also retained all rights to produce gainful sequels and reissue films in DVD format. (Datamonitor, 2004, p.
7-8)
Threats
Pixar had to compete with other animated productions, live action feature films and other entertainment productions. To sack one film typically took 12 to18 months, and any failures or mistakes could spell disaster for Pixar. (DataMonitor, 2004, p,7). There were two occasions where its competitor, DreamWorks Animation, win Academy Awards for Shrek and Happy Feet over Pixar’s Monster, Inc and Cars (Price, 2008). Hence, intense contestation and financial risk were potential threats to the company.
The SWOT analysis showed that Pixar was able to use its competitive advantages very effectively, such as apply the success of its film, Toy Story, to renegotiate better contract impairment with Disney. It...If you want to get a full essay, order it on our website: Orderessay
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