Case â€“ The Walt Disney and Pixar Inc. Case Solution
Â Assuming that Pixar and Disney are more valuable in an exclusive relationship, can that value be realized through a new contract? Or is common ownership required (i.e., must Disney acquire Pixar)?Â â€¨
- Disney has numerous benefits with the relationship of Pixar as the Pixar has highly technically competent staff.
- Although Walt Disney has many other alternatives, which add value to the company, however itwants to sustain relationship with Pixar. Someof the alternative strategies available to the company are as follows:
- The company should consider its operation and improve them by eliminating the problem in the functions, as a result the companyâ€™s departments will perform better and effectively.
- The company should also hire technically competent staff as well which would provide highly animated movies and ambitious designing, which is popular among the customers.
- These factors will lead towards significant growth of the company and the company will not be dependent.
- The company has options available to create strategic relationships with studios other than Pixar, which mainly include Blue sky and Dream Works.
- Although the company will face difficulty initially with making relationship with its competitors however,the long term benefits associated with the strategy are numerousas the company has less investment opportunities.(Å¾odÅ¾ia, 2009)
New Contract with Pixar:
- There are many loopholes in the new contract with Pixar.
- On the other hand, the acquisition of Pixar will provide more benefits as the company requires long term value as well as it would reduce the variations in the profitability.
- The benefits of acquisition and the drawbacks of the new contract are as follows:
Long Term View:
- The renewal of the contract will allow the company to co-produce movies with Pixar, however the tenure of contract is limited, whereas the company intends for a long term production with Pixar, which would generate sustainable profits……………………………… Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â This is just a sample partial work. Please place the order on the website to get your own originally done case solution