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SONY. Strategic Alliance. Disney Background. Established 1923 Founders: Walter Disney and Roy Disney Disney bought audio oscillators from HP and created “Fantasia” Disney Business segments: Media Networks Parks and Resorts Studio Entertainment Consumer Products.
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Disney Background • Established 1923 • Founders: Walter Disney and Roy Disney • Disney bought audio oscillators from HP • and created “Fantasia” • Disney Business segments: • Media Networks • Parks and Resorts • Studio Entertainment • Consumer Products
HP Background • Established 1939 • Founders: Bill Hewlett and Dave Packard • First Product: audio oscillator • HP’s 3 main core areas: • The Personal System Group • The Imaging and Printing Group • The Technology Solutions Group
Mission: Space • 10 years alliance agreement • Located in Walt Disney World Resort at • Epcot theme park, Florida • Provide the environment of space trip • The sites also include the following activities: • Mission: Space Pavilion • Mission: Space Attraction • Mission: Space Advanced Training Lab • Mission: Space Cargo Bay
Strategic Fit Mission: Space “The mission of The Walt Disney Company is to be one of the world's leading producers and providers of entertainment and information. Disney seeks to develop the most creative, innovative and profitable entertainment experiences and related products in the world.” To check strategic fit 1) Comparing mission statement of Disney to HP. 2) Can two companies strengthen up each other’s weakness in order to achieve the goal?
What’s in it for all Stakeholders? • Stakeholders include employees, customers, owners, and executive managers. • First benefit increasing in market shares through co-branding. • Second benefit earned cost saving from the alliance by sharing resources. • Third benefit increase in productivityby: • enhance the productivity as in both the companies can increase their production capacity and have wider market share. • improving the product/service quality , improve communications, and improve working relationship
Types of Alliance • Solution-specific alliance • “technology”
Impact and Performance • 'digital decade’ in next 10 years • Both Disney and HP are highly successful brands that constantly try to deliver more compelling products and experiences to customers by applying technology. • “We believe this is one of the coolest attractions that Disney has dreamed up.” said HP’s CEO, CarlyFiorina .
Future Direction • The Innovation Dream Home • Technology from HP to Disney: • HP TouchSmart PC • HP Blackbird 002 Desktop • HP Pavilion HDX Entertainment Notebook • HP SL4778N 47-inch MediaSmart TV • HP MediaSmart Server EX475 • HP MediaSmart Connect • HP iPAQ510 Voice Messager
Key Success Factors • By alliance with each other, they both have win-win situation. • Factors to success are: • HP gives opportunity to the Walt Disney to make their dream come true concept success. • Disney developed an easier access to their customers • Both enjoy revenue • Co-branding; created market power to the both of them • Add Value to both brands • Better image for their firms and stakeholders • Strengthen HP as the leader of the technological industry, and reinforce of how the Walt Disney is the giant enterprise in the entertainment and media world. • Win-Win situation for both firms
The connections link from customers to Disney, Disney to HP, and customers to HPand this triangle have brought all of them different satisfactions depending on their needs.
Summary • The alliance of Disney and HP should be successful because they shared many benefits together • - Productivity Increases:increase their quality as well as the number of units being produced. • - Partnering with the Experienced: share information on what they do best and then focus on their constraints and develop ideas. • - Alliance can also increase productivity by: • Market intelligence • Make market forecast • Improve product quality • Improve working relationships • Improve communication • I Improvement of products/services