YagmurSimsek Casereport WaltDisney Pixa
MKTG 413.A
Case Report 1
Walt Disney & Pixar
1. Which is greater: the value of Pixar and Disney in an exclusive relationship, or the sum of the value that each could create if they operated independently of one another or were allowed to form relationships with other companies? Why? There are some reasonable facts that refer to say the value of Pixar and Disney in an exclusive relationship has the greatest value. First of all, they can bring their supplementary skills and also their wealth together. Moreover, as long as it can be understand from the case, they both have a good synergy in terms of the creativeness and approaches to the movie sector. While they can improve new capabilities, they can also increase their market power. This relationship would lower risks might be faced in the sector. Shortly, Disney’s strengths is meeting the deficits such as having talented story writers of Pixar and Pixar is doing the same for Disney’s weaknesses in terms of the advantages in software development industry. When Pixar’s innovative culture and Disney’s huge history in animated children’s movies come together, this would be an important value for the sector thinking the movies that can be produced in the future.
2. Assuming that Pixar and Disney are more valuable in an exclusive relationship, can that be realized through a new contract? Or is common ownership required (i.e. must Disney acquire Pixar)? It is clear from the past experiences of Disney and Pixar that they both need to work under a better-decided agreement. Since there have been some problems occurred in the latest agreements in terms of dividend and also movie rights; both sides would reconsider the possible solutions and profit sharing to avoid inequality. In other words, Disney must acquire Pixar without forgetting its weak sides. At the end, Disney would gain high-level technology and skill usage with successful knowledge from Steve Jobs and his works. As it is pointed in the case,
Case Report 1
Walt Disney & Pixar
1. Which is greater: the value of Pixar and Disney in an exclusive relationship, or the sum of the value that each could create if they operated independently of one another or were allowed to form relationships with other companies? Why? There are some reasonable facts that refer to say the value of Pixar and Disney in an exclusive relationship has the greatest value. First of all, they can bring their supplementary skills and also their wealth together. Moreover, as long as it can be understand from the case, they both have a good synergy in terms of the creativeness and approaches to the movie sector. While they can improve new capabilities, they can also increase their market power. This relationship would lower risks might be faced in the sector. Shortly, Disney’s strengths is meeting the deficits such as having talented story writers of Pixar and Pixar is doing the same for Disney’s weaknesses in terms of the advantages in software development industry. When Pixar’s innovative culture and Disney’s huge history in animated children’s movies come together, this would be an important value for the sector thinking the movies that can be produced in the future.
2. Assuming that Pixar and Disney are more valuable in an exclusive relationship, can that be realized through a new contract? Or is common ownership required (i.e. must Disney acquire Pixar)? It is clear from the past experiences of Disney and Pixar that they both need to work under a better-decided agreement. Since there have been some problems occurred in the latest agreements in terms of dividend and also movie rights; both sides would reconsider the possible solutions and profit sharing to avoid inequality. In other words, Disney must acquire Pixar without forgetting its weak sides. At the end, Disney would gain high-level technology and skill usage with successful knowledge from Steve Jobs and his works. As it is pointed in the case,