Introduction
A multimillion animation studio experience various ups and downs during the history of its existence. Pixar studio is a unique phenomenon that represents not only the creative and comprehensive approach to animation but also a perfect example of organizational management. The studio annually produces hundredth of films that are nominated or awarded by prestigious institutions. Currently, Pixar, one of the largest animation studios in the world, follows the following main six components in its strategic planning: continuous improvement, competitive strategy, external environment-social trends, dynamic capabilities, organizational learning, and the resource-based view of strategy (RBV). These components are selected due to their relation to the company’s strategic, systematic, and organizational arrangement. This paper will analyze the importance of each component in operation, identify the company’s vision and goals, represent the advantages of the selected course, and introduce strategies to maintain top positions.
Vision and Purpose of the Company
Pixar is a world top company that produces several million-dollar pictures each year. Despite the scale and the budget of the production, Pixar accomplishes its goals in every picture. According to Catmull (2008), the company creates and designs a new generation of animated feature films using contemporary animation technologies’ technical, creative, and production advances. The company’s purpose is to incorporate world-class talents and the best technological advances in creating unique and innovative animated content for all ages (Catmull, 2008). Pixar’s vision is a focus on creativity, new ideas, and continuous technological improvement. A well-organized promotion company and identification of social trends allow the company to be one of the titans of industry.
Continuous Improvement
Over the company’s history, various transformations related to the animation style, technologies, and conception could be observed. As mentioned by Catmull (2008), the main power of the company is its ability to integrate technologies and art in different ways. These views are the heritage of Disney that selected continual change or reinvention as the main course of action. Now, Pixar uses technologies at every stage of the production, constantly updating and improving existing practices.
Competitive Strategy
Its advantages emphasize the competitive strategy of Pixar company in the market over other animation studios. First, Pixar uses advanced animation technologies to produce 3 D images by manipulating thousands of motion control sensors in one character (Chinta, 2018). Technology that allowed them to reuse animated images helped to save a significant amount of time. Second, the quality and the time are the critical factors that give Pixar a competitive advantage in the market (Chinta, 2018). Moreover, human resources play an essential role in production and competitive strategy. According to Chinta (2018), on a regular, basis more than 500 employees are involved in film creation. The focus of an extensive number of specialists on one picture is a part of a good competitive strategy.
External Environment -Social Trends
The global trend significantly affects the company’s further development, and Pixar is no exception. Catmull (2008), in his interview with Harvard Business Review, mentioned that to “stay on the rails,” the company’s managers carefully observe and revise global trends, adapting them based on the needs of their auditory. Additionally, he mentioned that following global events, cultures, and trends could bring breakthroughs in animation technologies. This observation allows the company to enter the international market providing cultural enrichment. In most cases, Pixar follows social movements, but it creates its own, introducing something remarkable.
Dynamic Capabilities
Pixar company has excellent potential for further development and dynamic capabilities. Catmull (2008) claimed that this phenomenon is explained by the fact that Pixar hires only talented, loyal, and excited to create employees. With the extensive expansion of the company, its production and growth capabilities also increase. This positive dynamic is also supported by the existing competitive relationship between Pixar and Disney (Chinta, 2018). Both organizations possess enormous resources for further success implementing a similar strategy. However, constant technological updates and transformations and adequately selected human resources could help Pixar surpass its main competitor.
Organizational Learning
Organizational learning and knowledge renovation are an ultimate part of Pixar’s collaborative culture. Catmull (2008) said that the company follows three main principles of operation. Everyone could communicate and ask questions; everyone could offer ideas; the company should stay tuned to new updates in academic communities. Technological innovations require new learning opportunities, communication, and assistance in using them. At this point, Catmull (2008) highlighted that “managers need to learn that it’s OK to walk into a meeting and be surprised.” Adapted for all modern standards of animation educations, Pixar University is specially designed to prepare new talented specialists for producing original ideas.
Resource-Based View of Strategy (RBV)
The resource-based view of Pixar’s strategy could cover two main aspects: technology and human resources. In terms of technology, the company obtains a tremendous financial opportunity that allows implementing best technologies in practice. Talking about human resources management, the company successfully regulates and controls its employee by encouraging creativity and new ideas. In addition, the company hires thousands of talented people around the world that facilitate productive operations.
Benefits for Today’s Incorporate Economics
The company’s excellent infrastructure resulted in a significant number of world-known projects of the past 20 years, such as The Good Dinosaur, Inside Out, Toy Story, and Brave. Today’s economic structure of the company is directed to the whole conception exploited by the company. The incorporate system is created based on the principles of talent and personal involvement of employees. The main benefit of the company’s present position is its opportunity to expand its influence and enhance its skills. Moreover, an engaging environment and constant curiosity of employees help to complete the work fast and efficiently.
Strategies to Keep Top Positions
To keep its superior position, Pixar should continue the previously selected strategy. The animation industry facilitates healthy competition between Pixar and its competitors such as Warner Brothers, Dreamworks Animation, and Disney. The aim of Pixar in this race is to stick to the quality and provide well-designed, sophisticated material. Furthermore, Pixar should increase communication level to the highest degree allowing sharing and presenting new thoughts in different levels. Additionally, Pixar should find new methods of using technologies more efficiently.
Conclusion
To conclude, it could be said that Pixar is a good example of a company that concentrates on quality, employee satisfaction, and efficiency, maintaining creativity and positive outcomes. Strategies implemented by the company are an excellent example of creative business management. Pixar projects maintain a timeless representation of human values and messages directed to people of different ages, considering the changing trends and cultural values. The organizational business model reflects the idea and the conception of the company. Covering the great range of technological and artistic tools, Pixar shows good results in the international arena. The comfortable and creative environment introduced by the appropriate management created the Pixar phenomenon, the world’s top animation company.
References
Catmull, E. (2008). How Pixar Fosters Collective Creativity. Harvard Business Review. Web.
Chinta, R. N. N. (2018). Disney & Pixar – M&A – Strategic and Competitive Analysis, Harvard. Research Gate. Web.