Disney and Pixar

Disney's acquisition of Pixar in 2006 resulted in many headlines and opinions. The main reason for the acquisition was Disney's reluctance to lose its ties with the new giant in animation, while its own opportunities were waning because a lack of technology and innovation. The acquisition was therefore based upon Disney's drive to maintain a relationship that has historically proven to be profitable, while also maintaining its own health in a market where its traditional artistic as well as leadership style was no longer viable. In order to analyze the factors behind the acquisition, three main areas will be considered: Analysis and Re-Design; Constraints and Risks; and Market Opportunities and Recommendations.

Analysis and Re-Design

The decision to integrate Pixar with Disney was, as mentioned above, based upon the potential of the latter to improve the market position of the former. According to Gayton (2006), the previous relationship...
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