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Group 7

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.

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Group 7

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  1. Group 7

  2. Agenda • Company Overview • Motives and Fits of Partner • Alliance Structure • Problems and Future Direction • Key Success Factors • Recommendation

  3. Background Motive & Fits Of Partners Alliance Structure Problem & Latest Situation Key Success Factors Recommendation Who is Disney? • One of the leading media companies in the world • Walt Disney Studio • Theme Parks and Resorts • Disney Consumer Products • Media Networks: ABC and ESPN

  4. Background Motive & Fits Of Partners Alliance Structure Problem & Latest Situation Key Success Factors Recommendation Who is Pixar? 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

  5. 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 Background Motive & Fits Of Partners Alliance Structure Problem & Latest Situation Key Success Factors Recommendation Motive of Partners

  6. Background Motive & Fits Of Partners Alliance Structure 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

  7. Disney bought Pixar Merged two companies becoming Disney-Pixar 2006 Background Motive & Fits Of Partners Alliance Structure Problem & Latest Situation Key Success Factors Recommendation Structure of Alliance Pixar entered into Co-production Agreement with Disney and agreed to produce five animations. Disagreement when Toy Story2 would be launched. 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 1991 1997 Toy Story launched and in the market and was successful. Attempted to have a new agreement. Pixar negotiated Disney only do distribution, and Pixar would control entire products and get ownership over the films . 2004 1995

  8. Background Motive & Fits Of Partners Alliance Structure Problem & Latest Situation Key Success Factors Recommendation Type of Alliance • 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.

  9. Background Motive & Fits Of Partners Alliance Structure 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: • 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. • 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.

  10. Background Motive & Fits Of Partners Alliance Structure 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.

  11. Tolerance Share core strengths to the alliance Trust Background Motive & Fits Of Partners Alliance Structure Problem & Latest Situation Key Success Factors Recommendation

  12. Pixar Culture Disney Culture Background Motive & Fits Of Partners Alliance Structure Problem & Latest Situation Key Success Factors Recommendation Lessons learnt from Alliance vs.

  13. Work office is not a cubicle, but rather a habitat Main culture is egalitarianism,which emphasizes on teamwork. Background Motive & Fits Of Partners Alliance Structure Problem & Latest Situation Key Success Factors Recommendation Pixar

  14. Hierarchy Management Style Aim more on making the profit instead of providing the quality animation Background Motive & Fits Of Partners Alliance Structure Problem & Latest Situation Key Success Factors Recommendation Disney

  15. Thank You for Your Attention

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