SONY
Strategic Alliance
Disney Background
• Established 1923
• Founders: Walter Disney and Roy Disney
• Disney bought audio oscillators from HP
and created “Fantasia”
• Disney Business segments:
 Media Networks
 Parks and Resorts
 Studio Entertainment
 Consumer Products
4
HP Background
• Established 1939
• Founders: Bill Hewlett and Dave Packard
• First Product: audio oscillator
• HP’s 3 main core areas:
 The Personal System Group
 The Imaging and Printing Group
 The Technology Solutions Group
5
Mission: Space
• 10 years alliance agreement
• Located in Walt Disney World Resort at
Epcot theme park, Florida
• Provide the environment of space trip
• The sites also include the following activities:
 Mission: Space Pavilion
 Mission: Space Attraction
 Mission: Space Advanced Training Lab
 Mission: Space Cargo Bay
6
Strategic Fit
Mission: Space
• “The mission of The Walt Disney Company is to be one of the world's
leading producers and providers of entertainment and information.
Disney seeks to develop the most creative, innovative and profitable
entertainment experiences and related products in the world.”
•To check strategic fit
1) Comparing mission statement of Disney to HP.
2) Can two companies strengthen up each other’s weakness in order
to achieve the goal?
What’s in it for all Stakeholders?
•
•
•
•
Stakeholders include employees, customers, owners, and executive managers.
First benefit  increasing in market shares through co-branding.
Second benefit  earned cost saving from the alliance by sharing resources.
Third benefit  increase in productivity by:
– enhance the productivity as in both the companies can increase their
production capacity and have wider market share.
– improving the product/service quality , improve communications, and
improve working relationship
8
Alliance Structure
Disney
HP
NASA
• Enhanced entertainment
experiences
• Team of “Imagineers”
• Development of new
technologies
• $ 100 m. computer
system
• Support what makes the
Disney experience
magical
• Provide Scientific Info.
9
Types of Alliance
• Solution-specific alliance
• “technology”
10
Impact and Performance
• 'digital decade’ in next 10 years
• Both Disney and HP are highly
successful brands that constantly try to
deliver more compelling products and
experiences to customers by applying
technology.
“We believe this is
one of the coolest
attractions that Disney has
dreamed up.” said HP’s
CEO, Carly Fiorina .
11
12
Welcome to Mission: Space
13
Future Direction
• The Innovation Dream Home
• Technology from HP to Disney:
 HP TouchSmart PC
 HP Blackbird 002 Desktop
 HP Pavilion HDX Entertainment Notebook
 HP SL4778N 47-inch MediaSmart TV
 HP MediaSmart Server EX475
 HP MediaSmart Connect
 HP iPAQ510 Voice Messager
14
Key Success Factors
• By alliance with each other, they both have win-win situation.
• Factors to success are:
– HP gives opportunity to the Walt Disney to make their dream come true
concept success.
– Disney developed an easier access to their customers
– Both enjoy revenue
– Co-branding; created market power to the both of them
– Add Value to both brands
– Better image for their firms and stakeholders
– Strengthen HP as the leader of the technological industry, and reinforce of
how the Walt Disney is the giant enterprise in the entertainment and media
world.
– Win-Win situation for both firms
15
The connections link from customers to Disney,
Disney to HP, and customers to HP and this triangle
have brought all of them different satisfactions
depending on their needs.
16
Summary
The alliance of Disney and HP should be successful because they shared many
benefits together
I
- Productivity Increases: increase their quality as well as the number of units
being produced.
- Partnering with the Experienced: share information on what they do best
and then focus on their constraints and develop ideas.
- Alliance can also increase productivity by:
Market intelligence
Make market forecast
Improve product quality
Improve working relationships
Improve communication
Improvement of products/services
17
18