Running head: PIXAR COMPANY ANALYSIS

Pixar Company Analysis

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PIXAR COMPANY ANALYSIS

Table of Contents
Introduction......................................................................................................................................2
Mission of the Company..................................................................................................................3
Vision of the Company....................................................................................................................3
Pixars strategic management process.............................................................................................4
Objectives and Goals.......................................................................................................................4
How International Market Affects Pixar Goals Implementation.....................................................5
References........................................................................................................................................7

PIXAR COMPANY ANALYSIS

3
Introduction

The Pixar Company is a leading ad diversified Multinational mass media conglomerate

and entertainment, whose headquarter is in Burbank California. The company was founded in
1979 by Walt Disney and his sibling Roy as a cartoon animation company, the company through
years of problems in the creation development developed to a multinational company. Robert
Iger (CEO), also known as Disney, now heads the company; Pixar is one of the largest movie
corporations in the world with about 200,000 employees and annual revenue of about $50
billion. Disney later bought Pixar in 2006 at a valuation of $7.2 billion, a transaction that made
Disney, the largest shareholder (Catmull, 2008). Pixar has produced more than fourteen feature
films, starting with Toy Story (1995, to the most recent being Monsters University (2013). All
the films produced by Pixar have gained financial and critical success.
Mission of the Company
Pixars objective is to be one of the worlds leading providers and producers of
information and entertainment, using its portfolios of outstanding brands to distinguish its
consumer products, services and content. The companys key financial goals are to maximize its
profits and cash flow and to assign capital profitability towards development and growth
initiatives that will drive long-term shareholders worth. Abells business model proposes that an
organization or company can be defined by using three dimensions (Taylor & LaBarre, 2006).
Pixar has been using this model to ensure that its mission is implemented properly. The first
dimension is customer groups (the audience that the company is going to serve; in this case the
company considers that the audience gets what they expect. In doing so, the company produces
films or movies based on the audience demographics. For example, the company produces
movies and animations based on age; kids and adults movies. The second dimension is customer

PIXAR COMPANY ANALYSIS

needs; the company conducts extensive market analysis to ensure that they meet the needs or
expectations of the client. The last dimension is distinctive competencies or technology; Pixar
incorporates the best technology while producing its animations and movies. In addition, it has
very skillful and knowledge employee who ensures higher levels of professionalism hence
quality products (Capodagli & Jackson, 2009). In order to address the mission of the company,
Abells model is implemented in all the undertaking of the company.
Vision of the Company
The vision of the company is to make the Globes movies completely original and
entertaining. Pixars secondary vision is to mix proprietary excellent creativity talent and
technology to develop computer-animated movies with heartwarming and memorable stories that
appeal to the general audience of all ages.
Pixars strategic management process
Invention and innovation entail high risks, and companies that do not take part in innovation
soon find their client base shaking or dwindling. Successful companies do various new product
development strategies, which means the firm at risk of collapse. To act in this line, Pixar
officials or executives have to resist on their natural strategy in order to minimize the risk, which,
of course is much easier in safeguarding the interests of the Company (Robertson, 1986).
Therefore, one of the key strategic processes that Pixar is currently employing is constant
promotion of new products. This strategy leads the executives of the company to choose to
emulate a success rather than to develop approaches that exist in the market.
The other strategic management process that the company undertakes is scenario
planning. The company relies on SWOT analysis to determine the threats and opportunities and
later develops strategic plans based on the most likely occurrences. For example, if the company

PIXAR COMPANY ANALYSIS

has a strategic vision to create new movies to market internationally, the management will
develop a stated objective to identify other competitors with the similar films that have entered
the market recently.
Pixar Stakeholders
The stakeholders of the company have both direct and indirect interest of the growth of
the company. The interest of the stakeholders depends on the agreement between Pixar and
Disney (the main stakeholder). The other stakeholders such as customers, employees, and others
that have influence with diverse circumstances of the Pixar-Disney agreement.
Objectives and Goals
Pixars primary objective is to integrate contemporary technology and talent to create
outstanding films with notable characters and encouraging stories that appeal to the immediate
audience. From bugs, fish, monsters and superheroes as well as robots, the company continually
delivers on its promise to truly and ultimately entertain the audience all over the world. The
secondary objective of the Pixar is to ensure that quality if offered in all aspects of its service
(Taylor & LaBarre, 2006).
Pixar has two main goals that have strived towards the last two decades. The first goal is
to create or develop quality stories that the entire family can enjoy. The second goal is to
increase production to one movie per day. Their first goal is always a top priority. Despite the
fact that the company merged, this goal remained one of the fundamental components of the
agreement between them and Disney. For instance, if the story lacks quality then, Pixar will
automatically ignore the second goal and modify the story or film until they have something
worthy for its audience.
How International Market Affects Pixar Goals Implementation

PIXAR COMPANY ANALYSIS

In the contemporary world businesses, there are ever increasing forces affecting
implementation of company goals and objectives. One of the forces that affect multinational
companies is an international business environment. The environment is challenged with
globalization process. Because of globalization Pixar is not reaching its audience with easy since
competitors are using the same distribution channels. Despite the fact that globalization has led
to internet technology the movie industry is facing various challenges resulting from internet use.
For instance, the internet has offered a platform whereby piracy takes place hence comprising
with the quality of stories and movies (Taylor & LaBarre, 2006).
In addition, the global environment is comprised of opportunists who convert other
companys resources to their own. In this case, there are individuals who market against other
companies and, therefore, corrupting the sense of belonging of the business such as Pixar.
Although the company is faced with global environment challenges, it has come with strategies
that maximize its profits. For example, the company has opened showing casing studies in
various countries around the world (Catmull, 2008). The company has also outsourced
employees and contractors from different parts of the world in order to merge a spirit of
multiculturalism in its undertakings. The company also enjoys various strengths as compared to
its competitors like strong diversification, large size of operation, responsiveness to market and
brand recognition.

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7
References

Catmull, E. (2008). How Pixar fosters collective creativity. Harvard Business School Publishing.
Taylor, W. C., & LaBarre, P. (2006). How Pixar adds a new school of thought to Disney. The
New York Times, 29.
Capodagli, B., & Jackson, L. (2009). Innovate the Pixar way: Business lessons from the worlds
most creative corporate playground. McGraw Hill Professional.
Robertson, B. (1986). PIXAR goes commercial in a new market. Comput. Graph. World, 9(6),
61-70.