Good Essay On Disney And Pixar

Introduction

The relationship between Disney and Pixar make immense strategic sense based on a combination of factors. Each of the individual companies has a positive reputation that makes the partnership a formidable factor. Disney is one of the best entities in the animation industry. Additionally, the company has had a successful stint in developing films and has adopted a strategic distribution mix that has assisted the company in the marketing of its products. Pixar is one of the companies with advanced technologies in producing 3-D animations. However, the two companies have advantages that negatively impact on the individual businesses. While Disney has challenges in developing 3-D animated materials, Pixar poor distribution mix that has immensely affected its marketing strategy. The two companies supplement one another because each of the weaknesses is supplemented by the partnerships. Disney has numerous capita deposits that have enabled it to rise in the wake of succeeding disasters. The partnership between Disney and Pixar is productive to each of the entities because the strengths and weaknesses are adequately dealt with as appropriate.
The contractual partnership between Disney and Pixar was fine details based on each entity mode of operations. Disney received 60% of the total partnership deal while Pixar got 40%. Pixar benefited from the deal because it assisted it to build a formidable reputation as a quality animation producer. Pixar in its submissions noted that it needs a better deal to aid in generating more percentile revenues. Just like Disney, Pixar argued that it needed to have a similar leverage in producing the sequels. Essentially, Pixar wanted the initial contracted expanded to ensure that there was a level playing ground for each entity.
There were inherent costs that were contracted for the mere fact that the contract had to be revised on various occasions. Pixar could not authoritatively decide on what to produce because Disney was the sole responsibility to make such determinations due to the disagreements. The major area of contracting numerous costs was due to continue the assessment and rewriting of the contract. For instance, the total amount emanating from the contract was $350 but Pixar was the worst loser only obtaining about $65 net of profit.

Conclusion

In conclusion, Disney should consider acquiring Pixar it stands a better chance of expanding its market portfolio. Ideally, Disney would quality 3-D materials at a minimum cost. However, the acquisition may not yield the expected results because it could be too expensive. Disney has the capability of producing sequel movies with the resources lined up for acquisition. Disney should refocus the resources in either partnering with other entities or maintain its contractual obligation as appropriate with engaging in non-profitable ventures such as the acquisition of Pixar.