Professional Documents
Culture Documents
Disney Pixar
Disney Pixar
Case Questions
1. Which is greater: the value of Pixar and Disney in an exclusive
relationship or the sum of the value that would create if operated
independently of one another or were allowed to form relationships with
other companies? why?
2. Assuming Pixar and Disney are more valuable in a relationship, Can
that value be realized through a new contract. or is common ownership
required (must Disney acquire Pixar)
3. If Disney does acquire Pixar, How should Bob Iger and his team
organize and manage the combined entity. What challenges you foresee
and how would you meet them.
Ally or Acquire!?
Factor
Remark
Strategy
Equity alliances
Types of Synergies
Sequential
Nature of resources
(soft/hard resources)
High
Extent of redundant
resources
Low/Mediu
m
Degree of Market
Uncertainty
Medium
Pixar has a good track record (shortonly 5 films) but there is no guarantee
that the same formula will work in the
future
Acquisitions
Level of competition
High
Acquisitions
Disney
Open and collaborative environmentGong show thrice a year to find the
best ideas
Katzenberg monitored all aspects of
film making
Large employee strength- led to a
bureaucratic set up
Rewarded based on the quality of
ideas/work difficult for employees to
be lured away by competitors
Suggestions to Disney
Challenges
Way Ahead
Grammar
Strategic Coordination
A1
Organization Coordination
B1
Operational Coordination
C2
Coordination Clauses
Co-production Agreement
Grammar
Strategic Coordination
A1
Organization Coordination
Routine: Clearly defined roles of the 2 parties with no decision left expost
B1
Operational Coordination
C2
Coordination Clauses
Re-negotiated Agreement
Grammar
Strategic Coordination
A1
Organization Coordination
Routine: Clearly defined roles of the 2 parties with no decision left expost (Except increasing revenue percentage with success of the movie)
B1
Operational Coordination
C1
Grammar
Credible Commitments
D2
Supervision
Non-specialized Supervisor
E2
Enforcement Clauses
Co-production Agreement
Grammar
Credible Commitments
D3
Supervision
Non-specialized Supervisor
E2
Enforcement Clauses
Re-negotiated Agreement
Grammar
Credible Commitments
D3
Supervision
Non-specialized Supervisor
E2
Grammar
Remuneration
F2
Duration
Short term
G2
Co-production Agreement
Grammar
Remuneration
F2
Duration
Short term
G2
Re-negotiated Agreement
Grammar
Remuneration
F3
Duration
Short term
G2