Factors of general environment affecting Pixar’s strategies and Performance
- Lack of enough qualified individuals in both creativity in storytelling and technological expertise, therefore, prompting in house training that incurs expenses. (Economic segment) (Dess, Lumpkin, & Eisner, 2006, Pixar case pdf, p.613, par.3).
- Over reliance on 43 year old Lasseter who is the chief story developer and vice president in the creative department. (Demographic segment) (Dess, Lumpkin, & Eisner, 2006, Pixar case pdf, p.613, par.6).
- External competition from Disney that is keen to acquire the company after noticing the success that the company has achieved. (Demographic segment) (Dess, Lumpkin, & Eisner, 2006, Pixar case pdf, p.612, par.1).
- Demand from the market to maintain its high rank because of the realization of their ability to outshine competitors. This factor affects its development because it is difficult to maintain a similar creativity level over time with impairments in technological advances. (Demographic segment) (Dess, Lumpkin, & Eisner, 2006, Pixar case pdf, p.611, par.1).
- Insufficient accesses to modern state technology to produce high visual graphics that rival companies like Disney are capable of handling. (Technological segment) (Dess, Lumpkin, & Eisner, 2006, Pixar case pdf, p.612, par.4).
- Disney’s policies after acquisition in 2006 that would dictate the freedom that the company had been used to handling. (Economic segment) (Dess, Lumpkin, & Eisner, 2006, Pixar case pdf, p.612, par.1).
- Consistency demanded by the market in delivering quality films may affect its desire to experiment on new technology. This prompts Pixar to apply the use of familiar characters that implemented the older technology that may not produce better results. (Technological segment) (Dess, Lumpkin, & Eisner, 2006, Pixar case pdf, p.613, par.5).
Impacts of these Factors on Pixar’s Strategies and Performance
The production of animation films requires a qualified team that is skilled to handle the various applied entities. The company applies several strategies with procedures to produce their trademark films and is specific on the overall applied procedures. Failure to gain these work entities, there will be a decline in Pixar’s noticeable quality.
Their reliance on qualified and skilled experienced individuals like Catmull and Lasseter is exemplary in maintaining the quality of the production industry, but may lead to its demise with resignation or death of these individuals. Pixar needs to invest in employing of training more staff that can match the quality that the two individuals present to the market. This would ensure its continuity in the quality delivery.
Disney has been working with the company in producing films since their merger in 2006 (Dess, Lumpkin, & Eisner, 2006). This may lead to a change in policy and administration that is the composition of Pixar. Pixar would seize to exist as a single entity and become a different company from the original.
The market desires consistency in quality deliverance. In their attempt to achieve this attribute, Pixar would stretch its capabilities and lead to employee burn out because maintaining the current form may prove an uphill task. The overall impact would lead to consistent change in policy and administration to satisfy the viewers whose opinions change with generation.
Companies with proper investments and expertise have applied the use of better technological software in animation production than the ones without investments. Pixar may not be capable of competing with these groups as it has applied technology that limits reflection of the developments achieved. The cost of new technology is heightened, and without proper operational knowledge, the company may run at a loss because the eventual result lies in poor film production.
With a change in administration, there may be difficulty in the normal operational duties leading to internal wrangles. Pixar is used to its independency in production, and through the acquisition by Disney; there may be a complication in communication during decision making.
Recommendations
There is a need to embrace new technology that would make production easier and maintain the high status accorded. To win more awards, Pixar needs to inject an investment on more creative individuals that are capable of producing new ideas that resemble the previous brilliant works that had defined its stature. Merger with established companies like Disney helps develop strategies and promote better creative input.
References
Dess, G. G., Lumpkin, G. T., & Eisner, A. B. (2006). Analyzing the External Environment of the Firm.in Strategic management: Texts and Cases.6th Ed. New York: McGraw-Hill.
Dess, G. G., Lumpkin, G. T., & Eisner, A. B. (2006). Pixar Case. in Strategic management: Texts and Cases. 6th Ed. New York: McGraw-Hill.