Walt Disney vs. Pixar

The Walt Disney Company and Pixar Inc.

To Acquire or Not to Acquire?

Andrii Alekseienko

Corporate Strategy

Case Study

18 September, 2015

The Walt Disney Company and Pixar Inc.

To Acquire or Not to Acquire?

To answer the main question of the case, we must think of the main problems that it faces. We need to find the solution for Bob Iger. What to do with Disney: to make some improvements in the existed company to compete better with Pixar, or to make a deal with another studio? Or should he work more with Pixar, or maybe just buy the whole company?

To answer this questions, I will use two tools: better-off test and ownership test. At first, Disney and Pixar can just stay at the same place, and make some reorganization in the company. But in this case, it’s gonna be hard, because this option requires a big amount of time and finance. Restructuring the company can take place to improve the system of enterprise management, changing economic and financial policies, operations, marketing systems, marketing and human resource management in order to improve the company. It’s a possible, but definitely not the best option.

Of course, the acquisition between Disney and Pixar have some advantages for Disney, but it’s not so good for Pixar, because their technology is unique, and different to the other players on the market. Because of company’s corporate culture and the talents of their employees. If we talk about famous animated films and unique solutions, both in technology and in the field of art, Pixar is the leader. The company earned a unique standard and competitive advantage on the market. As Steve Jobs stated, they spent a decade to combine both creative and technical specialists, because it’s not a thing that happens in one day.

When Iger changed Eisner as the head of the Disney, he must start to make good relationships with Steve Jobs, which is a definitely good behaviour strategy. He didn’t have to fight with Pixar, he need to help and to convince...