9. Featurd Films: Toy Story (1995), A Bug's Life (1998), Toy Story 2 (1999),Monsters, Inc. (2001), Finding Nemo (2003), The Incredibles (2004) , Cars (2006)Edwin Catmull George Lucas Steve Jobs John Lasseter 3
23. Questions What are the strong capabilities Pixar has? Does Disney have those or not? For Disney, are there any other alternative like strategic alliance better than acquiring Pixar? What are the risky factors when Disney tries to acquire Pixar? Acquiring Pixar makes the most sense for Disney’s growth? 5
24. Q1. What are the strong capabilities Pixar has? 6
25. Q1. What are the strong capabilities Pixar has? 7
26. Questions What are the strong capabilities Pixar has? Does Disney have those or not? For Disney, are there any other alternative like strategic alliance better than acquiring Pixar? What are the risky factors when Disney tries to acquire Pixar? Acquiring Pixar makes the most sense for Disney’s growth? 8
28. Q2. Alternatives CAPS (Computer Animated production system) -first relationship in 1986 owned by Disney -make 2D animation movies ex) Rescuer Down under, Lion King 10
29. Questions What are the strong capabilities Pixar has? Does Disney have those or not? For Disney, are there any other alternative like strategic alliance better than acquiring Pixar? What are the risky factors when Disney tries to acquire Pixar? Acquiring Pixar makes the most sense for Disney’s growth? 11
30. What are the risky factors Culture between Disney & Pixar Financial Stock Dilution 12
31. What are the risky factors Culture between Disney & Pixar Financial Stock Dilution 13
32. What are the risky factors Financial & Stock Dilution Estimated Value of Pixar 6.5 billion – 7.4 billion USD End of Fiscal Year 2005 Disney had Net Income 2.5 billion USD How to Acquire the “near-perfect strategic fit”? 14
36. Steve Job with 7% stake turn to became Disney’s largest shareholder.15
37. What are the risky factors Culture between Disney & Pixar Financial Stock Dilution 16
38. Disney’s Culture Big company, big bureaucracy 150,000 employees in 2008 Hierarchical structure: distant upper management, heavy-handed middle management Micromanagement low morale, “brain drain” of creative talent Profitability, not quality, rules the day Executives are the ones making creative decisions Generic Disney formula for animated films Straight-to-video “cheapquels” Princess Stories series ($3 billion in sales) Circle 7 Studios (“Pixaren’t”) Disney makes films on a tight schedule 17
39. Pixar: Free-Spirited Creativity Emeryville location (the “anti-Hollywood”) Individually-decorated workspaces; huts instead of cubicles Hawaiian shirts and scooters Policy against employment contracts 18
40.
41. Pixar: Perfectionism Pixar short films Story of Toy Story 2 No “cheapquels” for Pixar “Pick one idea, good or bad, and stick with it until it works.” 20
42. Pixar’s Culture The three basic principles: Everyone must have the freedom to communicatewith anyone. It must be safe for everyone to offer ideas. Stay close to innovations happening in the academic community 21
45. “You can accomplish a lot more as one company than you can as part of a joint venture. It makes a big difference when everyone is working for the same set of shareholders.” Bob Iger - Disney CEO
Editor's Notes
275(1988)950(1994) 2,200(1999)Account for 80 %(film cost)
275(1988)950(1994) 2,200(1999)Account for 80 %(film cost)