Disney Strategy Mergers & Acquisitions
Download as PPTX, PDF3 likes8,489 views
The document discusses Disney's strategic management through acquisitions of Pixar, Marvel, and Lucasfilm, emphasizing their unique management approach that maintains subsidiary individuality. It explores the effectiveness of their 'build-borrow-or-buy' framework and questions the sustainability of Disney's acquisition-led growth strategy amid industry disruptions. The document also suggests potential companies for future acquisition and the implications of the evolving media landscape on Disney's operations.
Disney Strategy Mergers & Acquisitions
- 1. How Buzz Lightyear, Iron Man, and Darth Vader Joined Mickey’s Family Hannah Khamil H. Miranda BA 190 – Strategic Management University of the Philippines Prof. Mita Angela M. Dimalanta
- 2. Vision: To make people happy Mission: To be one of the world's leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world
- 3. Values and Ethics: Innovation Quality Optimism Community Story – Telling Decency
- 4. Disney is the world’s largest media company with $45 Billion annual revenues. Disney has grown through high profile acquisitions which includes, 1. Pixar (2006) 2. Marvel (2009) 3. Lucasfilm (2012)
- 5. Strategic Alliances and Acquisitions - Pursue common interests - Enhance competitiveness - Increase revenues Acquisition – Led Growth Strategy - Disney became a more stable, predictable and diversified company
- 6. Internal Resource Relevance Resource Tradability Desired closeness with Resource Partner Feasibility of target firm integration Revisit build- borrow-buy options or reformulate strategy Internal Development Contract or Licensing Strategic Alliance Acquisition Low Low High Low High High Low High Buy?Borrow via alliance? Borrow via contract? Build? Strategic Resource Gap Mergers and Acquisitions, Strategic Alliances Build-Borrow-or-Buy Framework
- 7. 1. Why was Disney so successful with Pixar and Marvel acquisitions, while other media interactions such as Sony’s acquisition of Columbia Pictures or News Corp.’s acquisition of MySpace were much less successful?
- 8. Disney – Pixar – Marvel Acquisitions “Disney managed its new subsidiaries more like alliances rather than attempting full integration, which could have destroyed the unique value of the acquisitions.” Sony – Columbia Pictures Merger “It is a Japanese failure of judgment and an American failure of management.” News Corp. – MySpace Acquisition “Whatever the outcome, the 6-year-old marriage has become the latest example of what can happen when a traditional media company imposes its will - and business plan - on a start-up that has not yet reached its potential.”
- 9. 2. Given the “Build-Borrow-or-Buy” Framework, in Implications for the Strategist, should Disney pursue alternatives to acquisitions? Why or Why not?
- 10. Internal Resource Relevance Resource Tradability Desired closeness with Resource Partner Feasibility of target firm integration Revisit build- borrow-buy options or reformulate strategy Internal Development Contract or Licensing Strategic Alliance Acquisition Low Low High Low High High Low High Buy?Borrow via alliance? Borrow via contract? Build? Strategic Resource Gap Mergers and Acquisitions, Strategic Alliances Build-Borrow-or-Buy Framework
- 11. The Build-Borrow-or-Buy Framework - Pursue internal development (build) - Enter a contract arrangement or strategic alliance (borrow) -Acquire new resources, capabilities and competencies (buy) *Firms will be able to gain and sustain their chosen competitive advantages as long as they select the right pathways in obtaining new resources.
- 12. 3. Is Disney’s acquisition led-growth strategy is sustainable? Are there sufficient “Mini-Disneys” that Disney can acquire?
- 13. With this strategy, Disney is able to expand their firm and maximize the full potential of other companies through mergers and acquisitions. Disney proves that these decisions give them more creative talents and ideas that they are able to use to nurture and make their brand stronger. Through successive acquisitions, Disney is able to enhance its competitiveness and gain greater revenues that make their portfolio more extensive.
- 14. “Mini - Disneys” 1. Nintendo 2. Dreamworks 3. Hasbro and Mattel 4. Lego Company
- 15. 4. What effects are expected from continued disruption of the media industry on Disney? How should Disney respond?
- 16. Disney - Netflix Deal - “an exclusive US subscription television for first-run, line action and animated movies from Walt Disney Studios”
- 17. References: Barnes, B. (2008, June 1). Disney and Pixar: The Power of the Prenup. Retrieved September 2, 2016, from The New York Times: http://www.nytimes.com/2008/06/01/business/media/01pixar.html?_r=0 Nielson, S. (2014, January 13). Must-know: Could these key threats affect Disney’s profitability? Retrieved September 2, 2016, from Market Realist: http://marketrealist.com/2014/01/key- threats-might-affect-disneys-profitability/ Leonard, D. (2013, March 8). How Disney Bought Lucasfilm—and Its Plans for 'Star Wars'. Retrieved September 4, 2013, from Bloomberg: http://www.bloomberg.com/news/articles/2013- 03-07/how-disney-bought-lucasfilm-and-its-plans-for-star-wars Lang, B. (2011, June 15). News Corp.’s Failed Social Experiment: Why MySpace Didn’t Deliver. Retrieved September 4, 2016, from The Wrap: http://www.thewrap.com/news-corps-failed- social-experiment-why-myspace-failed-deliver-its-promise-28285/ Barnett, E. (2012, January 13). Murdoch: we screwed up MySpace 'in every way possible'. Retrieved September 5, 2016, from The Telegraph: http://www.telegraph.co.uk/technology/myspace/9012510/Murdoch-we-screwed-up-MySpace-in-every-way-possible.html ICMR Organization. (2004). Sony-Columbia Pictures: Lessons from a Cross Border Acquisition. Retrieved from ICMR: IBS Center for Management Research: http://www.icmrindia.org/casestudies/catalogue/Business%20Strategy2/Sony-Columbia%20Pictures%20Cross%20Border%20Acquisition.htm The Walt Disney Company Home Page. (n.d.). Retrieved from The Walt Disney Company: http://disneycompanyprofile.weebly.com Nielson, S. (2014, January 9). Must-know: Disney’s unpredictable Studio Entertainment business. Retrieved September 5, 2016, from Market Realist: http://marketrealist.com/2014/01/walt-disneys-studio-entertainment/ Rothaermel, F. (2015). Strategic Management (2nd Edition ed.). New York, United States of America: McGraw-Hill Education.