The following article appeared in a February (2/10/04) Wall Street Journal. It is rare that we find business writing that makes all the points that we make in Marketing Without Advertising
Price’s point number 2 is one we don’t make in our book. I make this recommendation in dealing with all my clients. There are many sources of capital that don’t require you to go public.
By DAVID A. PRICE
"What a difference a decade makes. Ten years ago, a small company called Pixar was selling animation software and turning out animated commercials for Listerine and Lifesavers. The Walt Disney Co., which was financing a Pixar film for theatrical release, had all but dictated the terms of the deal. And in late 1993, Disney had ordered Pixar to shut down production of the film on account of story problems.
"Today, Pixar Animation Studios is king of the hill, critically and commercially. When CEO Steve Jobs ended contract talks with Disney last month, the press focused on how Disney would cope: Pixar's films make up around 45% of the operating income from Disney's film operations.
"Pixar's own story holds nuggets for other companies. Most firms depend on adding value through intellect and creativity. Firms hoping to become the Pixars of their own industries could learn a thing or two from them:
"1. Small things, done well, can lead to big things. Pixar's early short films in the 1980s, painstakingly crafted, had no immediate commercial value except to promote the company's production tools. But they would serve as the calling cards that led to the first Disney deal and "Toy Story."
"2. Location, location, location. Pixar's leadership values the serendipity that results from having employees accessible to one another and interacting under one roof. While other technology companies -- and animation studios -- outsource work to distant locales, Pixar has done the opposite. It brings together top people from far and wide and houses them in a single building, a faux-19th-century structure laid out to promote casual interchange.
"3. Stay closely held until you hit your stride. Easier said than done, certainly, but look at Pixar's case. The company struggled financially for nine years through various business models before releasing "Toy Story." Fortunately, it had a sole owner in the person of Steve Jobs, who'd bought it in 1986 from George Lucas. It's doubtful that public shareholders or a VC-dominated board would have had the patience of Jobs.
"4. Make technology the servant, not the master. Disney and other studios are turning away from traditional animation, on the theory that Pixar's success is due to its 3D look. This is cargo-cult thinking. The storytelling skill embedded in Pixar's films has driven its success, not the technology. Those who doubt the power of 2D animation, when combined with great writing, need only look at the audience numbers for a crudely drawn series called "The Simpsons." And Harry Potter reminds us that even the lowest-tech medium, ink on paper, will find a mass audience if the story is there. Technology is a powerful means to the right end, but it's the end that counts."
Mr. Price is the author of "Love and Hate in Jamestown" (Knopf, 2003), a history of the Virginia Company.
Joe Ward (disability advocate), agrees with Michael Phillips and Salli Rasberry, on Marketing Without Advertising. Also, as David Price states, from his recent Wall Steet Journal article,- 'A Perfect Example', - "make technology the servant, not the master". Articles, comments, opinions, and posts, like this one, are a way, for example, to create fast marketing and/or 'Information Links', for his own start-up Natural Health and Naturopathy site - www.autoimmune-disorders.com , and can help capitalize on adword and keyword connection links. Especially for the 'no-financial-backing', online marketing beginner, who uses smarts to garner starts. -- Mr.Price, - Good article. Thank You, Joe-Ward (Gorillas-Don't-Cook).
Posted by: Joe Ward | June 13, 2004 at 05:09 PM