Disney Pixar
Disney! Pixar
Practicum Case Final Write-up
Group 2:
CEN, Cate
FORNACIARI, Jacopo
GUPTA, Nikhita
KEATING, Alex
LEE, Joon
1
EXECUTIVE SUMMARY
Disney currently faces difficult decision regarding its relationship with Pixar. Although previous collaborations with Pixar have brought immense success for Disney in terms of revenue and recognition, Pixar’s CEO Steve Jobs has been trying to negotiate a fairer deal with no success. Disney wishes to stay with previous negotiation terms, as it is more favorable for
Disney. Tension has increased between the two firms, and in response, Jobs began a searching for partnerships with other companies due to negotiation issues. This poses a threat for Disney, and Disney must make a decision on how to manage this current situation as soon as possible.
Through our analysis, we offer five potential decisions that Disney can make regarding this issue. These options include the full-on acquisition of Pixar, continuing the current relationship through renegotiation of a fairer deal, creating strategic alliances with other companies, outsourcing technology of future films, and internal development of computer generated animation technology capabilities in-house.
To assist with the decision making process, we utilized numerous tools and frameworks in order to thoroughly analyze situation regarding the two firms and their external and internal factors. One of the tools we utilized was the Porter’s Five Forces analysis for both of the companies. This allowed us to better understand the industry that Disney and Pixar individually falls under, and the current situations and pressures that the firms face within their specific industry. Aside from external analysis, we also conducted internal analysis for both of the firms.
We were able to recognize and pinpoint the similarities and differences between the organizational structure and core capabilities that Disney and Pixar individually operates under, and the synergies that exist between the
Practicum Case Final Write-up
Group 2:
CEN, Cate
FORNACIARI, Jacopo
GUPTA, Nikhita
KEATING, Alex
LEE, Joon
1
EXECUTIVE SUMMARY
Disney currently faces difficult decision regarding its relationship with Pixar. Although previous collaborations with Pixar have brought immense success for Disney in terms of revenue and recognition, Pixar’s CEO Steve Jobs has been trying to negotiate a fairer deal with no success. Disney wishes to stay with previous negotiation terms, as it is more favorable for
Disney. Tension has increased between the two firms, and in response, Jobs began a searching for partnerships with other companies due to negotiation issues. This poses a threat for Disney, and Disney must make a decision on how to manage this current situation as soon as possible.
Through our analysis, we offer five potential decisions that Disney can make regarding this issue. These options include the full-on acquisition of Pixar, continuing the current relationship through renegotiation of a fairer deal, creating strategic alliances with other companies, outsourcing technology of future films, and internal development of computer generated animation technology capabilities in-house.
To assist with the decision making process, we utilized numerous tools and frameworks in order to thoroughly analyze situation regarding the two firms and their external and internal factors. One of the tools we utilized was the Porter’s Five Forces analysis for both of the companies. This allowed us to better understand the industry that Disney and Pixar individually falls under, and the current situations and pressures that the firms face within their specific industry. Aside from external analysis, we also conducted internal analysis for both of the firms.
We were able to recognize and pinpoint the similarities and differences between the organizational structure and core capabilities that Disney and Pixar individually operates under, and the synergies that exist between the