Thursday, October 21, 2010

Pixar: Vertical Integration and Outsourcing

Soon after Robert Iger took over as CEO of the Walt Disney Company in late 2005, he turned his attention toward Pixar, the animation studio with which Disney had worked since 1991 and was responsible for producing hits such as Toy Story and Finding Nemo. Disney's own animated film business had been in decline since Jeffrey Katzenberg left to establish rival studio Dreamworks and the business relied on revenue from its partnership with Pixar to maintain performance. With the Co- Production Agreement between the two studios coming to a close in 2006, Pixar was looking to negotiate better terms with another distribution partner. This is why Pixar follows a strategy of Vertical Integration.

Outsourcing: I think the outsourcing had an interesting effect on world animation.  Everyone thinks about Disney when it comes to animation, but I don’t think they’ve created anything that really captured people’s imaginations since 1994’s.I think that this is a result of the decline in American animation.  People say that the reason that America drawn animation has declined is because of Pixar and Dreamworks.  That’s probably true, but I think we also have to take into account that after most animation began to be outsourced to Korea in the 1980’s and 1990’s, fewer artists in the U.S. could find jobs as animators, leading to a general decline in talent.Apparently, Pixar can't outsource because their directors and creative staff are involved in every step of a project from the beginning to the end. But I think Pixar does outsourcing since it works closely with Walt Disney.

Pixar: Generic Strategies

There is a tough-minded business strategy behind Pixar's we're-all-in-this-together workplace. A single animated feature takes four or five years to complete, the last 18 months of which feel like a breathless sprint. In such a high-stakes environment, even the most outrageously talented individuals are bound to suffer creative setbacks. One reason Pixar has produced such a string of hits is that the organization has learned how to hang together under the pressure.

Pixar also targets the mass market with its movies, but adopts a differentiation strategy, using its unique capabilities in story-telling and animation to produce signature animated movies that are hard to copy, and for which customers are willing to pay to see and own. Apple also targets the mass market with its iPhone and iPod products, but combines this broad scope with a differentiation strategy based on design, branding and user experience that enables it to charge a price premium due to the perceived unavailability of close substitutes.

Tuesday, October 12, 2010

Disney to push Toy Story 3 as Best Picture

The Walt Disney Company has decided that Pixar's Toy Story 3 deserves to be promoted as a contender for this year's Best Picture Oscar, reports The New York Times.

Disney will push the film to Academy voters "with all its might" come awards season, which suggests a strong "For Your Consideration" campaign is being prepared to get 'TS3' nominated for the top Oscar prize.

If the successful campaign for Up is any indicator, we should begin to see the first ads in trade publications early next month. Nominations will be announced on January 25, 2011. The 83rd Annual Academy Awards presentation takes place on Sunday, February 27.