1. How does Pixar use strategic management?

 Creating an environment that fosters creativity to employees.

 Developing storylines that emphasizes on quality over quantity.
 Partnering with a studio that praises creativity and quality.
 Use technological advancements to further refine innovative productions.

2. What elements in the external environment might affect Pixar’s strategy?

 An increase in watching TV reduces the need to go out and watch a movie

 Competitors enter the market with the best forms of animation technology
 Improvements in technology allow more individualistic creativity
 Disney pressure to produce more films
 The continuous advancement of technology (technological)
 Aging population - people are getting older everyday (demographics)
 Unemployment - people who are unemployed may not be able to afford ticket
prices (economics)

3. What key internal resources does Pixar have that might help it support its
competitive strategy?

 Pixar is well-known for its creative history, which tells about a wide spectrum of
spectators.
 Employees are highly motivated and accept challenges that are set very high.
 Pixar has a high commitment to its employees, which makes them more creative.
 The mix of Silicon Valley technicians, Hollywood producers, and animation
experts
 Campus like environment: 110 in-house training programs such as creative
writing, painting, and drawing

4. What is Pixar´s competitive strategy, and what is the basis of Pixar´s

competitive advantage?

 Pixar continues to encourage creativity within employees.

 Strong collaboration between Pixar and its employees to increase the
amount of ideas.
 Innovative animation challenging the original storyline idea
 Emphasis on every small detail pushes to Disney to develop at a high
standard.

5. How the strategic leadership and the management of innovation helped Pixar
sustain its competitive edge? What challenges remain for Catmull and
Lesseter?
  Marriage of technology and creativity allowed for films to capture
audiences.
 One challenge is continually developing hits as competition grows.
 Loss of Jobs might hamper that quality of films that get developed.
 Continually providing an environment that encourages creativity

Use Porter's Five forces to evaluate this industry.

1. Threat of New Entrants
Pixar is a company completely based on technologies and talents. Therefore, every new
participant will need to invest considerable resources in technology and human
resources. This is all, as well as marketing efforts, will require a lot of investment. The
recruitment of qualified and experienced professionals and their payment is also an area
that requires a lot of investment and effort. Thus, the barriers to entry of new players are
high. As a result, the threat of new participants remains low.

2. Bargaining Power of Buyers

The bargaining power of customers is low to moderate. Pixar has a huge customer base
and its customers love the quality of its movies, that is why Pixar has such huge revenues.
Very few competitors can provide similar quality and experience. Due to these factors,
the bargaining power of buyers is low.

3. Bargaining Power of Suppliers

Pixar is a technology-rich enterprise that has a huge number of its human and
engineering resources and many talented workers. This makes Pixar completely self-
reliant, which reduces the strength of the negotiations of its suppliers.

4. Threat of Substitution
Pixar is unique in terms of its quality and technology. Other brands cannot substitute the
unique quality of animation by Pixar. So, the threat of substitutes is also very low.
Customers always eagerly await new releases by Pixar.

5. Intensity of Rivalry
The competition for Pixar has been reduced by the fact that Disney has already acquired
most of the important brands in the animated movies industry. Very few competitors like
Dream Works and The Jim Henson remain which can pose a competitive challenge.
Therefore, the industry rivalry for Pixar is pretty low.

References
1. https://myclasses.artinstitutes.edu/d2l/le/content/155217/Home
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