Five force model of PIXAR

Threat of new entrants highschool Advanced technologies make it embarrassing for new competitors to enter the market because they have to develop those technologies before effectively competing. The requirement for advanced technologies positively affects PIXAR. The PIXAR has a high level engine room development department, so the threat of new competitors is the technology. Threat of substitute products or services operate I consider substitute products to be field of operation or other runs of entertainment.Internet is also a substitute form of entertainment as the concept of instant messaging was very fashionable at this time. Also, we can see the beginning of the popular social entanglement Facebook gain traction as it was launched in 2004. Rivalry among existing competitors High Since there argon only a few key players with akin percentage of market share (ranges from 14%-19%), the competition between them is strong. To be more competitive, the growing trend is to cons olidate and acquire other studios.For example, Vivendi acquired universal in 2000, which was then acquired by GE in 2004 and Viacom acquired DreamWorks in 2006. king of buyers Moderate I assess this threat to be moderate as there are many potential consumers with limited financial clashing on the industry. In addition, the industry is dominated by key players frankincense is able to limit the options for the buyers. On the contrary, even though there are only a few options, there are effectively correct switching costs for customers.Hence, watching a film by one company does not make it more costly or serious to then watch a film from a competitor. Power of suppliers Moderate I assess this threat to be moderate since with technology, hand-drawn living is cosmos replaced by computer technology. In addition, the needs for these computer animation skills jump off to be outsourced from North America to Asia Pacific where there are profound lower costs coupled with high quality computer animation production.