Pixar is probably Disney Animation Studio’s greatest rival, though they are both owned by Walt Disney Studios, which is in turn a part of the Walt Disney Company (“Walt Disney Company”). The market power is unequally divided between these firms. Though all six animation studios are in an oligopoly together, most of the market power is held by Disney, Pixar, and DreamWorks. Since Disney’s beginning, the market structure has changed. In the 1930’s, Disney Animation Studios was in a duopoly with Warner Brothers.
After doing the research I found that Walt Disney three competitors are listed below: • Time Warner Inc. • CBS Corporation • News Corporation Competitive Analysis Disney is involved in many different industries each of which possess many different competitors. Disney’s largest area of interest rests in media entertainment however, and thus is the area where competitors should be focused on the most. When compared to other players in the industry, Disney is the #2 biggest media conglomerate in the world, only behind Time Warner. Disney owns ABC television network, has roughly around 70 radio stations, and holds stake in networks such as ESPN, and A&E. When it comes to movies, their interests include Touchstone, Hollywood Pictures, and Miramax.
Walt Disney Corporation and the Internet INF 220: IS Principles Kimberly Smith March 24, 2012 Walt Disney is a successful entertainment company recognized worldwide. Conceived in 1923, Disney was an innovator in the entertainment industry as the brand grew it gained power from the brand created. Disney began to use its brand power to expand into publishing, television, and cable programming. In 1955, Disney formed an amusement park. As an innovator in the entertainment field Disney created an online environment.
The company is a leading provider of production, postproduction, and distribution services to content creators, network service providers and broadcasters. Technicolor is the world’s largest film processor; the largest independent manufacturer and distributor of DVDs (including Blu-ray); and, a leading global supplier of set-top boxes and gateways. The company also operates an Intellectual Property and Licensing business unit managing more than 42,000 patents. retrieved from http://www.technicolor.com On February 10, 2010 Technicolor and Warner Brothers have entered into a long term contract covering replication and distribution services for DVD and Blu-ray discs, which is expected to start generating material revenue in third quarter 2010. Warner Brothers Entertainment is the worldwide market leader in terms of physical media volumes (DVD) and Blu-ray combined).
What is your assessment of the competitive strength of Walt Disney Company’s different business units? Disney’s business units are at the top of the game as they continually acquire new companies that help them increase their renown and profits, these companies include Pixar and Marvel as well as many others. These are strong business moves by Disney as they not only acquire business that further their current strengths, but also acquire companies that give the access the products they may not have had before. Overall, I believe Disney has placed themselves in the spot of a top competitor. 4.
Jose Munguia Professor Hartmann English 152-03 1 December 2013 Success of the Wizard of Oz through Television The Wizard of Oz was a spectacular movie. The decade around Oz paved the way for many other amazing movies, which created new genres and set new standards for what a movie should be like. Some of the amazing movies that also came out during 1939 were: Gone with the Wind, Stagecoach, Mr. Smith Goes to Washington, Of Mice and Men, Love Affair, The Hunchback to Notre Dame, and many other great award winning movies (Films101). Each of these movies have been awarded for their amazing directors, story, actors and visual effects. However, out of all of these movies there has only been one that has been called the most popular movie
However, for those interested in taking a critical look at the Disney Corporation and, to a lesser extent, our consumerist culture at large, this book more than delivers. The Mouse That Roared delves beyond Disney’s family-friendly façade to look at the conglomerate as it really is. The author points out the fact that although most consider the Disney Corporation as consisting of whimsical-fairy tale movies and family-friendly theme parks, 2 the corporation also owns six motion picture studios, ABC television network, and multiple cable networks, music companies, radio stations, cruise lines, publishing houses, magazine titles, video game development studios, and publishing houses. In essence, Disney has its foot in the water in almost every single media outlet. Giroux goes on to say that Disney uses its media power to target children and mold them into lifelong consumers.
Although I feel it is great to stick to your core values, as a company, sometimes you have to go against those in order to remain profitable, especially if your profit goals are very high. According to the case, Eisner needs someone like Wells, who will handle more of the business aspect of the company to free Eisner and allow him “to do what he does best-think creatively about everything from movies to international theme parks.” One of the reasons Disney has been successful for so long is due to its creativity. Disney’s ability to continue to release blockbuster hits is unheard of within the industry. According to the case, beginning with the movie Down and Out in Beverly Hills, the next 27 of Disney’s 33 movies were profitable. Comparing this to the industry where nearly 60% of all movies lost money, this is amazing.
Also, the animation industry in continuously growing, and Disney is currently the market leader in this industry. In this technologically advanced world, every animation and cartoon is amazing and magical, and it amuses kids, teens and even adults. Furthermore, the older generation is also looking for other entertainment channels to fill up their leisure time. Disney, having its own media channel, can easily reach the target customers. Being a worldwide product, Disney can also reach the unattained markets in the regional languages with its existing products.
ANS: As the animation and movie industries are large industries, there are many factors that might affect Pixar’s strategy. Refer to the case study, there are many other firms that are also involved in the animation movie making business, making competition a key factor in the kind of strategies that Pixar chooses to use in order to differentiate themselves from the rest. Mergers and acquisitions of other animation firms with existing entertainment industries, are also elements that could affect Pixar’s strategy. The fact that Disney acquired Pixar gave them a market share advantage in a way that no other firm had at the time. However, if an animation firm chose to do something similar, Pixar could potentially have a rival substitute, making them lose their competitive edge of having been part of a larger entity.