What is happening in the macro environment at the time of the case?
Technology development is a key driver for changing animated films. This may simultaneously change economic factors and socio-cultural factors. PESTEL is the tool to analyze the broad macro-environment. (Johnson, Whittington and Scholes. 2003) Environmental influences on the animated films industry can be summarized within the following categories.
Economic
Box office revenue is not the only form of financial success. Other revenues created by movies include home video sales, cable channels and television programs. Consumer expenditure has increased by diversification of merchandise sales including toys, apparel, books and video games. (Alcacer, Collis and Furey. 2010) These factors show that the range of economic alternatives is huge. Furthermore, the concept of the sequel is an important source of revenue by reducing marketing costs because of built-in audiences.
Socio-cultural
There is a shift in value and culture as 3D movies is commonplace now. Most people would prefer to watch CG films rather than 2D. Lifestyles have changed as statistics show that home video sales have become the most important source of revenue as