(a) Internal (organic) building is not a good decision for both Disney and Pixar because internal resources are not highly relevant to the targeted resources (i.e., low relevancy). (b) Contractual alliance is not a good decision for both Disney and Pixar because the targeted resources are not highly tradable on the market (i.e., low tradability). The current difficulties in renewing their contract in the case illustrates this point. (c) Alliance with equity is not a good decision for both Disney and Pixar because the Pixar and Disney compete directly in production stage currently and will compete directly in marketing and distribution stages in the near future if alliance with equity works well (i.e., high closeness). (d) Acquisition is a natural decision based on the framework due to low relevancy, low tradability, high closeness, and easy integration.

(a) Internal (organic) building is not a good decision for both Disney and Pixar because internal resources are not highly relevant to the targeted resources (i.e., low relevancy). (b) Contractual alliance is not a good decision for both Disney and Pixar because the targeted resources are not highly tradable on the market (i.e., low tradability). The current difficulties in renewing their contract in the case illustrates this point. (c) Alliance with equity is not a good decision for both Disney and Pixar because the Pixar and Disney compete directly in production stage currently and will compete directly in marketing and distribution stages in the near future if alliance with equity works well (i.e., high closeness). (d) Acquisition is a natural decision based on the framework due to low relevancy, low tradability, high closeness, and easy integration.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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