Kellyebmassign3 200908221856
Kellyebmassign3 200908221856
Kellyebmassign3 200908221856
Pixar
I chose Pixar for the same reason anybody else would choose their products, I’m
in love with their content! As a child, I recall fond memories of seeing Toy Story for
the first time and being completely fascinated by how clear and concise the imagery
was displayed. Now as a parent, my son enjoys all of the Pixar films and these films
Background Information
Prior to becoming Pixar, the company was first created in 1979 by George Lucas,
known simply as Lucasfilm’s Computer Division. From the years 1982 through
1985, the computer division would continue to hone its craft and techniques by
In 1986, Steve Jobs purchases the Lucasfilms Computer Division and establishes the
group “Pixar” {pixar.com}. The very first client the Pixar company had was Disney as
they began collaboration on changing the way animated films were produced and
created. In 1991, Disney and Pixar unveil an agreement “to make and distribute at
would go on to be the full-length feature film “Toy Story” which was released in the
fall of 1995. Recognizing the films groundbreaking success, Pixar and Disney agreed
on an extension of the previous agreement with a 10-year contract with the promise
of creating five more movies. In 1999, Toy Story 2 is released and is the first film in
1999 to 2006, Pixar would continue to create Disney blockbusters such as Monsters
INC, Finding Nemo and Car’s. After the merger deal previously mentioned,
their popular films: newer films were added to the company’s assets as well with
titles such as Ratatouille, The Incredibles and The Good Dinosaur to name a few. All
in all, Disney/Pixar enjoy vast merchandising profits based off the films they have
created with the “Cars” franchise earning the company annually $2 billion alone in
Customer Segments
Children all ages: Due to the content of the companies feature films, it should
children and their general likes and requirement’s. The movies produced
have mild toon violence and are void of death: making them acceptable to
the movies generated by Disney/Pixar are also heavy favored by adult males
and females aged 18-44. College and grad school populations make up the
{pixarpost.com}.
Value Proposition
Suitable for all ages: Creating content that has a broad target market assists
Pixar with their continued successes. Films and their respective spin-offs and
sequels are generally accepted by all age groups which enhances the
Full of color: Often, Disney/Pixar creates imagery and characters that are rich
in vibrant colors that creates standout for its featured characters which
Good Story: All of the movies and respective sequels that have been created
and process these storylines from their own perspectives, but the story is
Happy Ending: All content created ends its story on a happy ending. A happy
ending leaves the audience feeling happier about the story which creates
interest for future sequels and spin-offs. Happy endings also resonate “good-
times” for someone which will make the probabilities higher for them to
Good Dinosaur. This realistic imagery creates more believable content which
assists in creating an overall great story that’s appreciated by all age groups.
storylines and characters. This out of the box thinking paves the way for
developing original content that is exclusively controlled and marketed by
Channels of Distribution
cable and satellite subscribing customers through these three main media
Feature Films: Perhaps the “meat and potatoes” of the Pixar’s blueprint of
first film the company produced was “Toy Story” in 1995 {pixar.com}.
Since Toy Story, the company has produced a long array of films that
Online Streaming: Netflix and other streaming giants have also noticed
creation and my son and I enjoy this film occasionally via Netflix.
to Mike Sorrentino’s article, he states “Disney has called Disney Plus the
are assessable through this streaming service which can only boost the
all serve as a means for Disney/Pixar to stay in touch with their marketed
Walt Disney Theme Parks: On May 23rd 2019, USA Today listed Disney
World in Orlando, FL as the worlds most visited theme park in 2018. The
articles author Adrienne Jordan wrote “ It drew 18.6 million visitors, with
attractions and rides are a common sight within the park, this greatly
that Pixar must do in order to sustain its successes. At this time, Pixar is
rumored to have multiple sequels planned for existing film franchises as well
Pixar markets its products on a grand scale to represent another key activity
cornerstone for the animated film giant’s ability to keep box office profits
flowing. All avenues of mainstream social medias ability to market the Pixar
brand have been utilized, as those successes are also explained in an article
2019).
Key Resources
A major key resource in which Pixar benefits immensely from is their unique
construction was overseen by the late Steve Jobs himself to ensure it was built
Designed, they stated inside contained “A full replica of the classic Muppets Show
Stage”!
Pixar also uses another key resource created by their owned design. Pixar
Uses the animation software “Renderman” for all of their projects which has been
crucial for procucing such realistic scenery within their cartoons. One of the most
recent project RenderMan was used in the Disney remake of “The Lion King”
RenderMan.Pixar.com, 2019).
Key Partners
The Walt Disney company has long since been a key partner or associate to
Pixar and can be traced back to 1986 (Our Story, 2019). In 2006, The Walt
of the Disney business tree. To this very day, Disney and Pixar work in unison
computer animation.
Star War’s creator founded the baseline of what would become Pixar in 1979
as The Computer Division for LucasFilms (Our Story, 2019). George Lucas is
best known for creating the Star Wars franchise and universe and is a very
Lucas further cementing that partnership, Disney purchased the Star Wars
franchise and rights from Mr. Lucas in 2012 for $4 Billion (usatoda.com,
2019).
Cost Structure
With great successes in the film industry typically brings about a larger cost
in things, that said Pixar does have a high window when it comes to their cost
structure and the importance of doing well in the box offices. An example of
the high cost of producing a animated film of their caliber can be sourced
from getwrightonit.com when they state that major films such as Toy Story 3
or Monsters University costed over $30,000 for each’s respective cost per
“There is an old saying: How do you make a small fortune in the film
industry? The answer to that is “Start with a large one”, That is what a Pixar
employee stated when asked how much it would cost to build a studio as
surprise that the costs for a studio of this caliber would be extensive and a
Revenue Streams
Pixar has enjoyed vast success at the theater box offices over the years and
shows no sign of slowing down its main revenue stream. According to Daniel
Kline, his article titled “How Profitable Have Pixar’s Movies Been For Disney”
sheds light on some incredible profits that Pixar has produced. He states that
the movie “Toy Story 3” for instance had a budget of 200 million but turned
around and earned $1.06 billion in box offices around the world (Kline,
Pixar’s merchandise sales revolving around their film franchises have earned
article describing the amount of money Pixar’s “Car’s” had generated only 6
years after its release. Dawn Chimielewki and Rebecca Keegan state: “In the
five years since its 2006 release, “Cars” has generated global retail sales
day, the Car’s franchise continues to earn merchandise sales for Pixar/Disney
and their products can be found at almost any retail store and online as well.
Conclusion
model is a solid revenue powerhouse for the Disney Corporation. This conclusion
can be cited with the copious amounts of successes the Pixar films have enjoyed
dating back all the way to “Toy Story” in 1996 (Pixar.com, 2019). The Pixar films
typically bring in hundreds of millions of dollars per film, and each of the film
children around the world. As I stated earlier, the ‘Car’s” franchise alone has raked
in over $10 billion in merchandise sales and is still marketed heavily in large
corporate retail stores such as Walmart. All in all, Pixar shows little to no signs of
slowing down its advancements in the film industry and can be expected to be a
staple in Disney’s own business model for many years to come. In my opinion, the
only advise I could provide Pixar to continue their stellar performance is to always
stay creative and never lose focus on Steve Job’s vision and moral compass that
Creative
Channels Distribution)
Disney Channel
Disney Plus
Online Streaming
Feature Films
Disney XD
Disney Jr.
Key Activities Key Resources Key Partners
Creating new film content and Pixar studios located in Disney Corporation
extending on sequels of Emeryville, California
previously installed titles or LucasFilms
Pixar franchises RenderMan editing software
Employee salaries
References
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Szalai, G. (2011, February 14). Disney: 'Cars' Has Crossed $8 Billion in Global Retail
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