Disney 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 difficult it’s become.
The relationship was started in 1978 as they were working together on the CAPS 2D production system. The alliance went quite well at first as itthey generated profits to both companies and they ended up signing an agreement to produced animation movies together. Pixar and Disney produced seven films over the course of their alliance that end in June after Pixar delivering “Cars”. The company CEO Steve jobs tried to reach a new agreement with Disney CEO but failed as the agreement did not meet Pixar demands for more profitabilityresulting in some tension between Jobs and Disney CEO Michael Eisner at that time.However, they continued to talk after Disney changed their CEO to be Robert A. Iger (Disney buying Pixar for $7.4 billion, 2006). These talks ended up in Disney acquiring Pixar but both companies remain separate entities. The acquisition of Pixar happened as Disney saw a large potential as a competitors while they were in an alliance together which left them with only one option.
Disney Pixar is an alliance that ended up as an acquisition but I will only focus on the alliance part. In this report provide the companies profile, industry analysis, company motives, situation and issues and lesson learned. I hope it would be interesting.
The Walt Disney Company is a well-known animation company founded by Walt and Roy in 1923. They first start as the Disney Brothers Cartoon Studio. The company is best known from the Walt Disney Studios. Walt Disney create two first animation which his Snow White and the Seven Dwarfs. They later producePinocchio, Fantasia, Dumbo, and Bambi.Disney also own 14 theme parks around the world.They also owns and operates the ABC broadcast television network; cable television networks such as Disney Channel, ESPN, A+E Networks, and ABC (Walt Disney: A Short Biography, n.d.).
After Walt Disney death, the studio is struggling but was saving by the arrival of Michael Eisner as a CEO and Jeffrey Katzenberg as chairman of Walt Disney Studios. The studio produced many hits animation like Beauty and the Beast, The Little Mermaid and The Lion King. The Lion kings generated more than $ 1 billion revenue to Disney (ALCACER, COLLIS, & FUREY, 2010).
Walt Disney studio was an open and has a collaborative environment that relied on all employees to generate story ideas. Animators got compensated base on the success of the film which makes it hard for other company to lure Disney animator away. The success of the Lion King seems to be...