2.Disruptive Innovator?
3.Transaction costs and solutions
4.Pros and Cons of acquiring Pixar for Disney
In case of Pixar and Computer generated animation, we think It’s safe to say they were positioned at 2 at first place.
At first, CG didn’t quite look nice as much as hand drawn animations.
Yet CG’s cost efficiency was unmatched to that of hand drawn animations.
On the other hand, quality of hand drawn animations were already high enough when their big hit, “Lion king” was released, yet costs were high, and there were no major technological break-throughs.
In 2D, traditional animation, frames comprised hand-drawn cells, which required the skills of hundreds of people working over 2-3 years. (High Cost, Standard Technology)
CG used mathematical models to redraw each cell and mimic camera angles in ways that traditional animation could not. (Low Cost, Disruptive Technology)

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