1. Group 7

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

3. 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
Background
Motive & Fits
Of Partners
Alliance Structure
Recommendation
Problem &
Latest Situation
Key Success
Factors

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

5. Motive of Partners Disney Pixar 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
Recommendation
Problem &
Latest Situation
Key Success
Factors

6. 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
Recommendation
Problem &
Latest Situation
Key Success
Factors

7. Structure of Alliance
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
Recommendation
Problem &
Latest Situation
Key Success
Factors

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

9. 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.
Background
Motive & Fits
Of Partners
Alliance Structure
Recommendation
Problem &
Latest Situation
Key Success
Factors

10. 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
Recommendation
Problem &
Latest Situation
Key Success
Factors

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

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

13. Work office is not a cubicle, but rather a habitat
Pixar
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
Recommendation
Problem &
Latest Situation
Key Success
Factors

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

15. Thank You for Your Attention15