Final answer:
Pixar's strategy can be influenced by several elements in the external environment, such as demographic, sociocultural, economic, technological, and competitive factors. The company has key internal resources in the form of primary and secondary activities, tangible and intangible resources, and organizational resources. By using strategic management, Pixar sets goals, formulates strategies, and makes decisions to support their long-term vision.
Step-by-step explanation:
Pixar, as a company, operates in an external environment that can be influenced by various factors. Some elements in the external environment that might affect Pixar's strategy include:
- Demographic: Changing demographics can impact Pixar's target audience and market demand for their animated films. For example, shifts in population age distribution can affect the types of movies that resonate with audiences.
- Sociocultural: Cultural trends, values, and preferences can shape Pixar's storytelling choices and the themes explored in their films. They need to adapt to societal changes and avoid controversial topics or content that may not align with prevailing norms.
- Economic: Economic conditions, such as recessions or economic growth, can impact the overall consumer spending power and willingness to watch movies in theaters. Pixar needs to consider consumers' disposable income and adjust their pricing or marketing strategies accordingly.
- Technological: Advancements in technology influence the way animated movies are created and consumed. Pixar leverages technological innovations to enhance their animation quality and storytelling techniques, ensuring their films remain visually impressive and engaging for audiences.
- Segments of competitive environment: Competition from other animation studios and entertainment companies can impact Pixar's strategy. They need to constantly analyze and respond to the strengths and weaknesses of their competitors to maintain their competitive advantage.
Pixar has several key internal resources that support its competitive strategy:
- Primary activities in its value chain: Pixar's primary activities include activities such as animation production, storytelling, and film distribution. These activities form the core of Pixar's competitive advantage in creating high-quality animated films.
- Secondary activities in its value chain: Secondary activities, such as marketing, human resources, and technology infrastructure, support the primary activities and enable Pixar to effectively execute its competitive strategy.
- Tangible resources: Pixar possesses tangible resources like animation software, physical studio space, and state-of-the-art equipment, which enable them to create visually stunning and technically advanced animated films.
- Intangible resources: Intangible resources like the company's brand reputation, patents, copyrights, and the creative talent of its employees (such as animators, writers, and directors) contribute to Pixar's competitive advantage.
- Organizational resources: Pixar's organizational resources include its management team, organizational culture, and relationships with partners and distributors. These resources help Pixar effectively manage its operations and navigate the competitive landscape.
Pixar uses strategic management by employing a systematic and proactive approach to set goals, formulate strategies, and make decisions that align with its long-term vision. They use strategic management to analyze internal and external factors, develop and refine their competitive strategy, and continually innovate to stay ahead in the animation industry.