Remark

Modular
Sequential
Reciprocal Yes
Both Pixar and Disney work closely together and share
knowledge
Low
Low/Medium Yes
Pixar has a proprietary software for developing graphics
and a fair number of people to work with it.
High
Low Yes
Small CG department which will become redundant for
Disney
Medium
High
Low
Medium Yes
Even though Pixar has given 5 back to back hits, the
animated movie market in general is not very
predictable
High
Low
Medium
High Yes
A lot of emerging competitiors for Pixar like
DreamWorks
Degree of market uncertainty
Level of competition
Pixar
Types of Synergies
Nature of resources
Extent of redundant resources
Strategy
Acquisition
Acquisition
Non-equity alliance
Acquisition
Acquisition
Net Revenue Production Costs
Worldwide Box Office 125 24
Worldwide Home Entertainment 267 52
Worldwide PPV and Pay TV Sales 29 5
Worldwide Free TV Sales 25 5
Worldwide Merchadising Royalties and Licensing fees 48 10
Total 494 96
Pixar's Total Income As % of total income Disney's Total Income As %of total income
101 75.4 33 24.6
215 75.7 69 24.3
24 85.7 4 14.3
20 83.3 4 16.7
38 84.4 7 15.6
398 77.3 117 22.7