Walt Disney Pixar Case Analysis - 1439 Words

Lauren Patterson October 7, 2013 Strategic Management 5301 Walt Disney-Pixar Analysis The Walt Disney-Pixar merger carries a number of convincing advantages for Disney, but Pixar shareholders should be less enthusiastic about such a deal. Pixar’s resources and capabilities have set a standard that is extremely difficult to imitate. Through its highly talented employee pool, culture of creativity and collaboration, and proprietary 3D computer animation software, Pixar has created a competitive advantage in the animation film industry that yielded average total box office sales of $538 million with just six movies. Pixar shareholders should be wary of the potential breakdown of these resources and capabilities, which in essence are its core†¦show more content†¦As with the strong cross-functional relationships, this brand loyalty is extremely difficult to imitate and both are social complexities that offer a competitive advantage to the firm. Another unique advantage Pixar has over other studios is its three proprietary (patented) technologies: RenderMan, Marionette, and Ringmaster. RenderMan enhanced texture and color to 3D computer generated models, which in itself were revolutionary compared to the traditional 2D animation. These software programs gave Pixar the capability to easily change a scene or a character all through mathematical models. This capability proved to be a huge time saver and subsequently a cost advantage over other studios that used 2D animation, which was very time intensive and needed a large staff of drawers. As an example, Pixar produced Toy Story in 1995 with only 110 staff and $3 million in general and administrative operating expenses. And since time was saved on the animation, the team could spend more time on the storyline and building out the characters, which resulted in high quality films. Marionette and Ringmaster enhanced character animation and production management respectively. These internal technological capabilities are a major reason why Pixar was able to produce such successful films at the box office. The blue ocean innovation of the animation software proved to be very costly for other studios toShow MoreRelatedPixar Case Study1292 Words   |  6 Pages2012-2013 YORGBEV PIXAR MAGIC CASE STUDY Submitted to : I. Viewpoint II. Significant Case Facts * Robert Iger, Walt Disney Co. new CEO, first task was to acquire Pixar Animation Studios. * Walt Disney Animation Studios, the studio that brought us Mickey Mouse and The Lion King, had become moribund over the past decade because of Pixar’s award-winning productions. * John Lasseter, now the Chief Creative Officer of both Pixar and Disney Animation Studios, explainedRead MoreExecutive Summary : Walt Disney Company5985 Words   |  24 PagesExecutive Summary The case is related with a decision regarding The walt Disney Company’s relation with Pixar. Though, history defined their collaboration and success. Pixar’s CEO Mr. Steve Jobs has tried to negotiate the contract but with no success because The Walt Disney Company wants to stay with previous terms. This pushed Steve Jobs to find for partnership with others. This search is a big threat for The Walt Disney Company and it has to decide whether to acquire Pixar or not. Through definingRead MoreCase Study : Walt Disney Company5336 Words   |  22 Pages1 – Chapter One 1.1 – Case Study Background: The Walt Disney Company was founded on October 16, 1923 when Mr. Walt Disney signed a contract with Mr. Winkler for producing a series of Alice Comedy. Then the company never stop. Its first cartoon Trolley Troubles was released in 1927 whereas, very first â€Å"Mickey Mouse† cartoon was released in 1928 and it was also the first appearance of â€Å"Minnie Mouse† on screen. Moreover, the first full-colour cartoon Flowers and Trees was released in 1932 whichRead MoreDisney and Pixar Alliance2230 Words   |  9 PagesDisney and Pixar have created many recognizing animation together over a decade that most people might not know that. The alliance has proven a success from many animations like Toy Story, Finding Nemo, Up and etc. Both company have allies to make many animation which led to Disney acquire Pixar. The alliance looks like a simple task at first for both companies as they only contribute certain resources to the partnership but the more time passes the more dif ficult it’s become. The relationship wasRead MoreWalt Disney-Pixar Merger2965 Words   |  12 PagesWalt Disney-Pixar Merger Brief Industry Analysis Because of the technology nowadays, one successful film can be distributed all over the world, which is in a form of motion pictures or DVD. Animation is one media that is spread all over the world; push it to be one of fastest growing industry. The demand for the animation is increasing from the emerging number of cables and satellite TV and the popularity of The Internet. In addition, in the past, the target market of the animation industryRead MoreWalt Disney s Objectives Of The World s Leading Producers And Providers Of Entertainment Essay1397 Words   |  6 PagesMission â€Å"The purpose of the company Walt Disney is to be one of the world s leading producers and providers of entertainment and information using its portfolio of brands to differentiate its content, services and consumer goods. The primary financial objectives of the company are to maximize profits and cash flow, and allocate capital to initiatives the development of long-term shareholder value.† Organizational Structure Disney operates using a strategic business organizational structure ofRead MorePixar Animation5916 Words   |  24 PagesPixar Animations MBA 615 Mickey Langford/Kimberly Horne Spring 2013 Mickey Langford Pixar Animations is our company of choice for this case study analysis. In 2006, Walt Disney acquired Pixar, but before we get to all of that, let us start at the beginning. Before Pixar, there was Lucas Films. George Lucas, of Lucas Films, decided in 1979 to upgrade their computer division (Animations, 2012). Lucas had a desire to see how far they could take computer graphics within the film industry. LucasRead MoreDisney : The Top 500 Companies With Highest Gross Revenue1316 Words   |  6 Pagesgross revenue. Disney is ranked 53rd on the list. The business at The Walt Disney well tells a story that the mouse has money, despite some near-term concerns. Disney is well diversified in entertainment has good fundamentals, and has benefited from the recent movie debut. Star Wars movie success, and with Finding Dory has proved profitable for Disney. The company is also expected to profit from its Parks and Resorts, The new Shanghai Disney, as well as the ongoing success of Pixar, Marvel , and otherRead MoreBusiness, Disney, Swami2992 Words   |  12 PagesWalt Disney-Pixar Merger Brief Industry Analysis Because of the technology nowadays, one successful film can be distributed all over the world, which is in a form of motion pictures or DVD. Animation is one media that is spread all over the world; push it to be one of fastest growing industry. The demand for the animation is increasing from the emerging number of cables and satellite TV and the popularity of The Internet. In addition, in the past, the target market of the animation industryRead MoreDisney s Current Published Mission Statement Essay1357 Words   |  6 PagesDisney s Current Published Mission Statement Walt Disney s does not have a distributed vision articulation. On the other hand, their current Statement of purpose can be found on their site (The Walt Disney Company, n.d.). The current statement of purpose peruses as takes after: The mission of The Walt Disney Company is to be one of the world s driving makers and suppliers of diversion and data. Utilizing our arrangement of brands to separate our substance, administrations and customer items,