Related Diversification Disney over the years has built itself into a related diversification company. This essentially means that they have been able to expand their business and product lines into activities and industries that were similar to what they were currently offering. Some examples of this process would be the introduction of Disney theme parks for families to attend as well as the addition of Disney Channel in 1983. These two different market segments are good examples of related diversification because they make Disney original business, the production of animated children movies, easier to deliver to their target market. Families can go to the parks and the children can enjoy seeing their favorite movies come to life, making
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Horizontal integration is the process of acquiring similar companies within the same industry. An example of this would be Disney acquiring Marvel Entertainment for $4 billion in 2009. Marvel is also in the industry of creating characters; however, they were a different breed of characters, which were superheroes. This acquisition allowed Disney to expand its product lines into different market segments, expanding the reach of their company. Vertical integration is the process of acquiring a company that operates either before or after the acquiring company in the production process. In Disney’s terms, they create the content, so they needed to acquire a company in order to deliver that content to their consumers. This happened with the acquisition of Capital Cities/ ABC for $19 billion in 1995. This acquisition allowed Disney to access the cable networks of both ABC and ESPN. In essence, they could spread their brand across these networks, making it easier for consumers to receive their products, benefiting …show more content…
Pixar began as a computer-animated filmmaking company in 1986 out of Emeryville, CA. Disney purchased Pixar in 2006 for $6.3 billion. This was a great acquisition at the time because it combined two major market shareholder, with the intentions of merging Pixar’s creative and technological resources with Disney’s vast portfolio and expertise. Disney at the time needed the expertise that Pixar provided, which led these two companies’ to produce some wildly popular films. Currently, Disney and Pixar operate independently from each other but share talents and resources in order to create films. I believe that Disney did not continue its partnership with Pixar because they did not need their expertise anymore when it came to creating computer-animated films. Disney did not want to share their movies with Pixar, and at this time, they are just as good with creating computer-animated films as Pixar is. This is shown through some of Disney’s recent films such as Zootopia and Frozen, which have been extremely
Horizontal integration is the process of acquiring similar companies within the same industry. An example of this would be Disney acquiring Marvel Entertainment for $4 billion in 2009. Marvel is also in the industry of creating characters; however, they were a different breed of characters, which were superheroes. This acquisition allowed Disney to expand its product lines into different market segments, expanding the reach of their company. Vertical integration is the process of acquiring a company that operates either before or after the acquiring company in the production process. In Disney’s terms, they create the content, so they needed to acquire a company in order to deliver that content to their consumers. This happened with the acquisition of Capital Cities/ ABC for $19 billion in 1995. This acquisition allowed Disney to access the cable networks of both ABC and ESPN. In essence, they could spread their brand across these networks, making it easier for consumers to receive their products, benefiting …show more content…
Pixar began as a computer-animated filmmaking company in 1986 out of Emeryville, CA. Disney purchased Pixar in 2006 for $6.3 billion. This was a great acquisition at the time because it combined two major market shareholder, with the intentions of merging Pixar’s creative and technological resources with Disney’s vast portfolio and expertise. Disney at the time needed the expertise that Pixar provided, which led these two companies’ to produce some wildly popular films. Currently, Disney and Pixar operate independently from each other but share talents and resources in order to create films. I believe that Disney did not continue its partnership with Pixar because they did not need their expertise anymore when it came to creating computer-animated films. Disney did not want to share their movies with Pixar, and at this time, they are just as good with creating computer-animated films as Pixar is. This is shown through some of Disney’s recent films such as Zootopia and Frozen, which have been extremely