Essay About Group Case Assignment-1Walt Disney And Cg Industry

Disney Vs Pixar
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GROUP CASE ASSIGNMENT-1WALT DISNEY & PIXAR- ACQUIRE OR NOT TO ACQUIREGroup – 2Team Members:Ankur Gupta- 61810442Apoorv Chetty- 61810791Tapas Mishra- 61810806Sumi Das-61810916Q.1. Should Disney buy Pixar? What are its alternatives?Ans. The decision of buying Pixar by Disney can be made after discussing the pros and cons of the action.PROS OF BUYING PIXAR:It will strengthen Disney’s core business. Disney’s major business lies in the animation field which failed miserably in the last few years. Disney can leverage Pixar’s 3D modelling strengths to produce animated characters.Pixar is the leader in the CG industry whereas Disney has started its own CG animation department but doesn’t have enough skills & capabilities regarding the technology.Disney’s 60% of total operating income come from Pixar’s films which denotes that Disney was heavily reliable on Pixar.Through this acquisition, Disney can gain full control of Pixar’s characters and can use them as per their requirements.Buying Pixar, Disney can have a competitive advantage in the animation industry; if failed to do so then some other studio might buy Pixar and the whole CG technology will shift to the competitor.Disney was working with Pixar since a long time, thus it can easily understand and manage Pixar’s operations post acquisition. CONS OF BUYING PIXAR:There are strategic risks involved in the acquisition of Pixar. There is no guarantee for the scope of Pixar’s technology. What if it stops working in future?Also, Disney can’t predict whether CG industry will remain a boom in the long-run.Disney’s corporate culture might not mix with the creative work environment of Pixar resulting in poor results of the acquisition.The employees of Pixar might not adjust with the culture of Disney and might leave the organization as Lasseter did in 1984.ALTERNATIVES TO PIXAR ACQUISITION:Disney can develop its own in-house CG skills and can turn around its animation studio.Disney can also develop networks and relationships with any other studio which is equally competent in CG technology and leverage their skills. (E.g. DreamWorks)Disney can hire talents from Pixar by offering them comparatively good employment opportunities.Disney can try hard to successfully renegotiate its existing contract.Considering all the pros and cons of Disney-Pixar acquisition, we can conclude that Disney needs Pixar and can work on either renegotiate on existing contract or acquire Pixar proposing an attractive offer.