SONY

Strategic Alliance

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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

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• 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

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• 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 FitMission: 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 fit1) Comparing mission statement of Disney to HP.2) Can two companies strengthen up each other’s weakness in order to achieve the goal?

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 fit1) 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 productivity by:

– 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

• 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 productivity by:

– 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

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Alliance Structure

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Types of Alliance

• Solution-specific alliance • “technology”

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Impact and Performance

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“We believe this is one of the coolest attractions that Disney has dreamed up.” said HP’s CEO, Carly Fiorina .

• '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.

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Welcome to Mission: Space

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Future Direction

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• 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

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The connections link from customers to Disney, Disney to HP, and customers to HP and this triangle have brought all of them different satisfactions depending on their needs.

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Summary

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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 intelligenceMake market forecastImprove product qualityImprove working relationshipsImprove communication

I Improvement of products/services

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