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    Walt Disney has engaged in strategic alliances and acquisitions to further its goals over the years. Some key strategic alliances included partnerships with Pixar to gain animation technology, Hong Kong government to enter foreign markets, and Target to sell merchandise through retailers. Major acquisitions comprised purchasing Pixar for its animation expertise, Marvel for its superhero franchises, and Lucasfilm for the Star Wars franchise to diversify offerings. Disney also acquired companies like Maker Studios, BamTech, and 21st Century Fox to expand into new markets and distribution channels.

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    Walt Disney has engaged in strategic alliances and acquisitions to further its goals over the years. Some key strategic alliances included partnerships with Pixar to gain animation technology, Hong Kong government to enter foreign markets, and Target to sell merchandise through retailers. Major acquisitions comprised purchasing Pixar for its animation expertise, Marvel for its superhero franchises, and Lucasfilm for the Star Wars franchise to diversify offerings. Disney also acquired companies like Maker Studios, BamTech, and 21st Century Fox to expand into new markets and distribution channels.

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    22 views3 pages

    Disney Case Study

    Uploaded by

    uroosa
    Walt Disney has engaged in strategic alliances and acquisitions to further its goals over the years. Some key strategic alliances included partnerships with Pixar to gain animation technology, Hong Kong government to enter foreign markets, and Target to sell merchandise through retailers. Major acquisitions comprised purchasing Pixar for its animation expertise, Marvel for its superhero franchises, and Lucasfilm for the Star Wars franchise to diversify offerings. Disney also acquired companies like Maker Studios, BamTech, and 21st Century Fox to expand into new markets and distribution channels.

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    of 3

    Student’s Name

    Professors Name

    Course Number

    Date

    The Walt Disney Case Study

    1-) List all the strategic alliances of Walt Disney. For each alliance, specify the strategic

    partner or partners, the type of the alliance, and the reasons for the alliance from the

    perspective of Walt Disney. Justify your response.

    1- Disney has grown into a multi-billion-dollar company with the help of strategic

    alliances and partnerships throughout the years to help realize its company goals.

    Here is a list of the strategic alliances, their types and the reason behind the specific

    alliance made by Walt Disney throughout the years:

    a) Pixar and Disney – they created an equity based strategic alliance that would have

    benefitted both the company’s as Pixar specialized in computer animation whereas

    Disney had just initiated the process to introduce technology to create animation

    movies. Pixar could profit from Disney’s popularity and marketing strategies and

    depended on Disney to distribute the film. The alliance was ended in 2004 due to a

    bad relationship between the two company’s CEOs.

    b) Hong Kong Gov and Disney- this joint venture between the Hong Kong International

    Theme Parks Ltd (HKITP) owed 53% by the Hong Kong Government was done

    mainly because Disney was entering a foreign market and required the help of the

    Hong Kong Government to gain access whereas the Hong Kong Government entered

    this strategic alliance to help their tourism industry grow.

    c) Disney and Target – to create stores within stores Disney and Target created a non-

    equity alliance where Disney could sell its merchandise through large retailers like
    Target where there is greater footfall and Target could benefit from creating Disney

    stores in certain Target stores to provide the customers with a unique buying

    experience and thereby profiting from it.

    d) Disney and NBC Universal- Hulu plus created as a joint venture between the two

    companies who are also competitors. This form of co-opetition creates an atmosphere

    of competition, and a learning race ensues which has a positive effect on both the

    companies.

    Total words:283

    2-) List all acquisitions of Walt Disney. For each of them, name the company Walt

    Disney bought and the reasons for the acquisition from the perspective of Walt Disney.

    Justify your response.

    a) Pixar – To further their technology in animation Disney acquired Pixar to acquire their

    technology which gave way to their blockbuster movies such as Toy Story. Disney also

    gained famous franchises by this merger and profited greatly.

    b) Marvel Entertainment – Disney added a new set of superhero characters to increase profits

    by diversifying their product offering to appeal to a different age group. Introducing these

    characters also profited them when they made superhero merchandise and introduced

    superhero rides.

    c) Lucasfilm – The Star Wars franchise had gained much attention and Disney acquired

    Lucasfilm to profit from the franchise through their merchandise and increased product

    differentiation in their market offerings.

    d) Maker Studios – Maker studios was a YouTube based network working with YouTube

    content creators with a high number of subscribers. The real reason to acquire Maker Studios
    was to reach audience that Disney was previously unable to reach with its content, thus they

    provided content to audience on all available platforms and Maker Studio proved to be a new

    channel for them.

    e) BamTech – a content management and distribution business with a streaming platform

    provided through the Internet allowed Disney to expand its offerings and branch out to access

    new markets in the streaming industry. BamTech helped create Disney+ and ESPN+ to

    directly compete with Netflix and Amazon.

    f) 21st Century Fox – This acquisition was mainly to access entertainment assets belonging to

    21st Century Fox such as their movie studios, characters, and network assets. It also was

    aimed to differentiate the market offering Disney had and improve profits.

    g) CapCities ABC – tv networks and stations, radio networks and stations, cable networks

    including ESPN helped Disney expand its distribution channels. It strengthened Disney’s

    ability to distribute films and other content in the market.

    h) Euro Disney – To expand globally Disney acquired Disneyland Paris which was failing

    due to the cultural differences. To increase competitive advantage Disney acquired it and now

    receives ticket sales and merchandise sales with 49 percent ownership interest.

    i) Blue Sky – To achieve economies of scale and cut costs Disney bought Blue Sky to release

    more movies each year and increase profit.

    Words: 353

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