Walt Disney-Pixar Merger Essay

2994 Words Mar 18th, 2013 12 Pages
Walt Disney-Pixar Merger

Brief Industry Analysis

Because of the technology nowadays, one successful film can be distributed all over the world, which is in a form of motion pictures or DVD. Animation is one media that is spread all over the world; push it to be one of fastest growing industry. The demand for the animation is increasing from the emerging number of cables and satellite TV and the popularity of The Internet. In addition, in the past, the target market of the animation industry was just kids, but now, it expands market to cover all ages of customers. The companies can be range from a big company such as Walt Disney to an individual artist with a PC. The trend of the industry has changed from drawing and
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In 1990, the company office was moved to a one-story building in Point Richmond, California. And, it created five new commercials. In May 1991, the organization entered into the Feature Film Agreement with Walt Disney Pictures for the development and production of three computer animated feature films to be marketed and distributed by Disney. Then, the alliance was begun.

The Motives and Fits between the partners of the alliance The alliance between Disney and Pixar will yield great benefit to both parties. The motives for each partner can be identified as the followings.
• Disney can acquire core strengths of Pixar in producing computer motion pictures that appeals to the customers worldwide. As Disney started developing its computer animation later than the other competitors in the animation industry. At the time when Pixar generated more than 30 billion dollars from its 6 animation motion pictures, Disney struggle with its production. For example, Chicken Little, though perform better than its other movies, it is still not be able to compete with Pixar animation. • The decrease in competition is another motive for Disney. Because both are different entity, the competition in the market becomes high. Especially, Disney cannot compete in term of producing the animations that attract customers as much as Pixar. Pixar is the large player in the industry. It is possible of collaboration between Pixar and another big studio. And

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