group 7
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Group 7. Agenda. Company Overview Motives and Fits of Partner Alliance Structure Problems and Future Direction Key Success Factors Recommendation. Background. Motive & Fits Of Partners. Alliance Structure . Problem & Latest Situation. Key Success Factors. Recommendation. - PowerPoint PPT PresentationTRANSCRIPT
Group 7
Company Overview
Motives and Fits of Partner
Alliance Structure
Problems and Future Direction
Key Success Factors
Recommendation
Background Motive & Fits
Of Partners Alliance Structure RecommendationProblem &
Latest SituationKey Success
Factors
• One of the leading media companies in the world
– Walt Disney Studio
– Theme Parks and Resorts
– Disney Consumer Products
– Media Networks: ABC and ESPN
• 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 & FitsOf Partners Alliance Structure Recommendation
Problem & Latest Situation
Key Success Factors
Background Motive & Fits
Of Partners Alliance Structure RecommendationProblem &
Latest SituationKey Success
Factors
Disney
Acquire core strengths of Pixar
Increase its revenue
Decrease in competition
Access to technology
Pixar
Gain the benefit of being able to produce the other lines of products
Increase productivity and more sales
Motive of Partners
Background Motive & Fits
Of Partners Alliance Structure RecommendationProblem &
Latest SituationKey Success
Factors
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
Of Partners Alliance Structure RecommendationProblem &
Latest SituationKey Success
Factors
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 Disney bought Pixar Merged two companies becoming Disney-Pixar
Background Motive & Fits
Of Partners Alliance Structure RecommendationProblem &
Latest SituationKey Success
Factors
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
Of Partners Alliance Structure RecommendationProblem &
Latest SituationKey Success
Factors
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:
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.
Background Motive & Fits
Of Partners Alliance Structure RecommendationProblem &
Latest SituationKey Success
Factors
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
Of Partners Alliance Structure RecommendationProblem &
Latest SituationKey Success
Factors
Share core strengths
to the alliance Tolerance
Trust
Background Motive & Fits
Of Partners Alliance Structure RecommendationProblem &
Latest SituationKey Success
Factors
Lessons learnt from Alliance
vs.
Pixar Culture Disney Culture
Background Motive & Fits
Of Partners Alliance Structure RecommendationProblem &
Latest SituationKey Success
Factors
PixarWork office is not a cubicle, but rather a habitat
Main culture is egalitarianism,which emphasizes on teamwork.
Background Motive & Fits
Of Partners Alliance Structure RecommendationProblem &
Latest SituationKey Success
Factors
DisneyHierarchy Management Style
Aim more on making the profit instead of providing the quality animation
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