Group 7
Company Overview
Motives and Fits of Partner
Alliance Structure
Problems and Future Direction
Key Success Factors
Recommendation
• One of the leading media companies in the
world
– Walt Disney Studio
– Theme Parks and Resorts
– Disney Consumer Products
– Media Networks: ABC and ESPN
Background
Motive & Fits
Alliance Structure
Of Partners
Problem &
Latest Situation
Key Success
Factors
Recommendation
• Established in 1986 by Steve Jobs
• Computer graphics unit of Lucasfilm to be Pixar
• An Academy Award-winning computer animation
studio with technical, creative, and production
capabilities
Background
Motive & Fits
Alliance Structure
Of Partners
Problem &
Latest Situation
Key Success
Factors
Recommendation
Motive of Partners
Disney
 Acquire core strengths of Pixar
Pixar
 Gain the benefit of being able to
produce the other lines of
products
 Increase its revenue
 Decrease in competition
 Increase productivity and more
sales
 Access to technology
Background
Motive & Fits
Alliance Structure
Of Partners
Problem &
Latest Situation
Key Success
Factors
Recommendation
What’s for Stakeholders?
Revenue:
Get higher share price for stockholders
 Human Resource:
Be able to exchange valuable human
resource between Disney and Pixar
Background
Motive & Fits
Alliance Structure
Of Partners
Problem &
Latest Situation
Key Success
Factors
Recommendation
1991
Pixar entered in to Feature Film Agreement with Walt Disney for Development and
Production of three computer animated films while Disney do marketing and
distribution
1995
Toy Story launched and in the market and was successful.
1997
Pixar entered into Co-production Agreement with Disney and agreed to produce five animations.
Disagreement when Toy Story2 would be launched.
2004
Attempted to have a new agreement.
Pixar negotiated Disney only do distribution, and Pixar would control entire products and get
ownership over the films .
2006
Background
Disney bought Pixar
Merged two companies becoming Disney-Pixar
Motive & Fits
Alliance Structure
Of Partners
Problem &
Latest Situation
Key Success
Factors
Recommendation
 Sales alliance:
the agreement of the two companies
would be categorized as to increase sales.
 Investment alliance:
The motion will be invested
by both Disney and Pixar, which split the cost equally and
share 50/50 profit.
Background
Motive & Fits
Alliance Structure
Of Partners
Problem &
Latest Situation
Key Success
Factors
Recommendation
Main Issues
-
Disney aborted the contracts in launching the Toy Story 2
-
Partnership between Pixar and Disney ended with an acquisition by
following possible issues:
Background
1.
Pixar thought it was not getting mutual benefits. Profit would be
split after recovered costs on marketing and distribution. Jobs tend
to charge the high share price.
2.
Pixar can be successful without Disney because they have
technological skills and innovation in the company to produce
profit-generating films as they did in the past.
Motive & Fits
Alliance Structure
Of Partners
Problem &
Latest Situation
Key Success
Factors
Recommendation
Latest Situation
•
The combined Disney-Pixar company is operated by Ed Catmull as the
President of the company, and John Lesseter as the Chief Creative
Officer.
•
15-year partnership has created a good collaboration between Pixar and
Disney teams.
•
The acquisition led the collaboration without barriers from different
companies with different sets of shareholders.
•
The combined can focus on the same goal that is to delight the millions
of people worldwide especially family audience with creative stories,
characters, and films.
•
Disney-Pixar can develop its strategic priorities.
Background
Motive & Fits
Alliance Structure
Of Partners
Problem &
Latest Situation
Key Success
Factors
Recommendation
Share core strengths
Tolerance
to the alliance
Trust
Background
Motive & Fits
Alliance Structure
Of Partners
Problem &
Latest Situation
Key Success
Factors
Recommendation
Lessons learnt from Alliance
vs.
Pixar Culture
Background
Motive & Fits
Alliance Structure
Of Partners
Disney Culture
Problem &
Latest Situation
Key Success
Factors
Recommendation
Pixar
Work office is not a cubicle, but rather a habitat
Main culture is egalitarianism,which emphasizes on
teamwork.
Background
Motive & Fits
Alliance Structure
Of Partners
Problem &
Latest Situation
Key Success
Factors
Recommendation
Disney
Hierarchy Management Style
Aim more on making the profit instead of providing the
quality animation
Background
Motive & Fits
Alliance Structure
Of Partners
Problem &
Latest Situation
Key Success
Factors
Recommendation
Thank You for
Your Attention