The Walt Disney's Strategic Issues, Corporate Level Strategy, and Strategic Actions (Case Study Sample)

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The Walt Disney Company
Strategic Issues
The most outstanding strategic issue presented in the Walt Disney Company’s case entails the intricate decision concerning its relationship with Pixar Inc. The latter is a highly competitive movie studio using 3D computer-generated models to animate its films. As shown in the case, the animation was vital to Disney’s corporate strategy since movie characters, such as Mickey Mouse, Goofy, and Donald Duck, drove retail in its other income channels, such as theme parks and consumer products division. For example, Snow White, The Lion King, and Toy Story films had given Disney a competitive edge in the animated movie industry, not only in the United States but also in new markets, such as China. Disney owed its success to Pixar, a working relationship that commenced in 1986 when the two firms collaborated in Computer Animated Production Systems (CAPS) development. However, conflict arose when Pixar’s chief executive officer, Steve Jobs, began negotiating a fairer deal without success. Disney wished to stay with the previous terms since they were favorable, which prompted Jobs to start searching for partnerships with other firms. This issue posed a threat for Disney and Bob Iger, the CEO, knew he desired to maintain the relationship with Pixar, although he did not understand the terms. He needed to devise ways to manage the situation as soon as possible, since collaboration between Disney and Pixar would bring back its former glory.
Alternatives
The primary alternative available to Disney was to reengineer its animation in-house to compete better with Pixar. Additionally, Disney had a choice of creating strategic alliances with other studios, such as Warner Brothers, Universal, and Dreamworks, by negotiating new distribution deals. Finally, the firm had the option of acquiring Pixar, which had the best animation talent and leadership that Disney needed to regain its competitive edge in the industry.
Evaluation of Alternatives and Recommended Course of Action
Reengineering to improve its competitiveness was a viable