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MBA501: Dynamic Strategy and Disruptive Innovation Assessment 2 Organisation Case Study – Fantasy Film

MBA501: Dynamic Strategy and Disruptive Innovation Assessment 2 Organisation Case Study – Fantasy Film

Structure
Fantasy Film is a digital animation studio that specialises in animated feature films,
digitally animated advertising, digital animation software, video gaming, and digital
special effects for live action films.
Although the organisation has production facilities in Brisbane, San Francisco, and
Los Angeles it remains centrally controlled by a senior executive team from
company headquarters located in Sydney. The managerial structure is ‘top down’
meaning that all decisions such as project appraisal and selection are made by the
senior executive team and then filter down to the lower levels in the organisational
hierarchy.
Several trends in the broader visual effects industry made the senior executives
and the key shareholders nervous. Several larger companies acquiring smaller
counterparts and the emergence of highly specialized smaller and nimble
operations are such developments seen in the industry. The smaller operators
outsource work unlike Fantasy Films which maintain a permanent staff of
software developers and digital animation specialists.
Fantasy Films acquired “Yoda Knows,” a small gaming developer last year. Yoda
is famous for Galactic Battles, a successful first-person shooter game that has a
small but a cult following. Fantasy Film executives were impressed with the
questlines (story) behind the games that Yoda is planning introduce.
Four Businesses
Fantasy Film operates the following four strategic business units:
1. Fantaspace
This business produces digital animation feature films generating $3.5 billion in
revenue. The Fantaspace production “Slippery Bob” won the Academy Award
last year for best animated feature film.
2. Advantage
This business creates digitally animated advertising for television and the

P a g e 2 | 3
Internet and generates $1.9 billion in revenue for Fantasy Films. Important
clients include Amazon, Tesla Motors, and Apple.
3. Anisoft
This business builds digital animation software generating $150 million in
revenue. DreamWorks has just signed on as a client subscriber.
4. Yoda Knows
This business generates $200 million revenue. A beta version of the new
game “Space Odyssey,” a shooter game has got raving reviews from several
gaming reviewers and early adopters. Yoda has incorporated strategy
elements to the game and therefore can attract to a variety of gamers. The
gaming community is buzzing about the release of the game; delays can
impact the enthusiasm.
5. DigiFX
This business produces special effects for live action feature films and
generates $300 million in revenue. The business has just been contracted to
perform the digital special effects work on the upcoming film ‘Ghost Rider
Returns.’

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