The Walt Disney Company and Pixar Inc. to Acquire or Not to Acquire?

Chapter three will cover the decision making process and for it the write of this business report will utilise different tools and frameworks in terms of thorough analysis of the case regarding The Walt Disney Company and Pixar and their external and internal factors. One of the apporpriate tool for external analysis of both comapnies is Porter’s Five Foces Analysis that has been utilised by the write for industry analysis of both companies. This tool will allow write to understand the industry in better way that The Walt Disney Company and Pixar are falling individually. Besides, it will allow the write to evaluate the current position and

This paper analyses the financial performance of the Walt Disney Company during FY’15 using profitability, liquidity, asset management, and debt management ratios, along with the DuPont system and a measure of Economic Value Added (EVA); and recommends purchase of the stock.

Managing conflict for organizations is very important in maintaining business relationships, especially ones that are profitable like that of Disney-Pixar. At the helm of the Walt Disney Company during the begging and end of these feuds was Michael Eisner and Bob Iger. Even though Michael Eisner is the one responsible for the conflict with Disney and Pixar, he should be equally responsible for trying to fix the damaged relationship. When trying to manage conflict there are several approaches that can be taken to resolve the conflict at hand: dominating, accommodating, problem solving, avoiding and compromising.

Pixar has exceptional talents not only in art and film making but also in science and technology. It has a group of engineers

Disney’s acquisition of Pixar had both benefits and implications for both parties involved. By acquiring Pixar, Disney was given access to Pixar’s proprietary technology, which was an important factor, as well as access to new characters. These characters provided a new source of income for Disney, not just for movies, but also to use in theme parks, merchandise stores, etc., meaning new characters would supply immense revenue streams for Disney in several forms. Disney also gained strengthened market power, as acquiring one of their rivals would give them a competitive advantage and would simultaneously make them more powerful in the market. Additionally, Disney was never very successful with their animated movies, and acquiring Pixar would

In addition, by having access to the Pixar brand and its characters, they would help to supplement Disney’s existing characters across its different businesses like theme parks, merchandise, and television, which provide more sales opportunities. Despite the dilution of Disney’s earnings per share, it is for the short-term. The acquisition fills a crucial strategic gap for Disney and can create long-term value for its shareholders. As such, Pixar is a “near perfect strategic fit” for Disney and hence should be acquired by Disney to remain competitive.

This paper will analyse a recent period of strategic change at The Walt Disney Company which began in 2005 with the appointment of current CEO Robert Iger. The company began to experience halted growth during the late 1990s. The former CEO Michael Eisner had been successful himself in the late 1980s in changing the company during what is known as the Disney

5. Does Disney’s portfolio exhibit good strategic fit? What value chain match-ups do you see? What opportunities for skills transfer, cost sharing, or brand sharing do you see? Please be specific and explain why.

Introduction: The Walt Disney Company is on the threshold of a new era. Michael Eisner has stepped down from his position as CEO and turned over the reigns to Robert Iger. A lot of turmoil has been brewing through the company over the last four years; many people are hoping that this change in leadership will put Disney back on the road to success. Issues began around mid-2002; when declining earnings, fleeing shareholders, and

Disney used the character of Mickey Mouse and others to create movies that customers enjoyed like “Beauty and the Beast” while Pixar was producing made up animated characters to create films like “Cars” and “Wall-E”. Disney was creating animated movies but struggling to generate the amount of money Pixar was making on producing only one movie a year. Disney wanted to grow in creating more animated movies and decided to buy out Pixar in 2006 for $7.4 million dollars. (Barnes, 2008) According to Disney’s CEO Robert

Disney operates in very competitive industries such as media, tourism, parks and resorts, interactive entertainment and others. The competitive landscape changes quite drastically in the media industry, where news and TV go online and new competitors with new business models compete more successfully than incumbent media companies. Disney’s parks and resorts business segment also receives strong competition from local competitors who can offer better-adapted product. This results in growing competitive pressure for Walt Disney Company (Ovidijus Jurevicius).

To conclude, Pixar has many opportunities that can be explored, in both the global and local markets. There is a lot of potential for

Disney’s long-run success is mainly due to creating value through diversification. Their corporate strategies (primarily under CEO Eisner) include three dimensions: horizontal and geographic expansion as well as vertical integration. Disney is a prime example of how to achieve long-run success through the choices of business, the choice of how many activities to undertake, the choice of how many businesses to be in, the choice of how to manage a portfolio of businesses and the choice of how to create synergies between those businesses (3, p.191-221). All these choices and decisions are

Disney has moved well beyond its cartoon-oriented roots. Though the company is still involved the production of original feature films and other related media (and though the media network division of the Company is still the organization’s leading generator of revenue) the company has long since stopped being your typical “animation studio” or “film production company.”

1) What is the Disney Difference and how will it affect the company’s corporate, competitive and functional strategies?