(a) Internal (organic) building is not a good decision for both Disney and Pixar because internal resources are not highly relevant to the targeted resources (i.e., low relevancy). (b) Contractual alliance is not a good decision for both Disney and Pixar because the targeted resources are not highly tradable on the market (i.e., low tradability). The current difficulties in renewing their contract in the case illustrates this point. (c) Alliance with equity is not a good decision for both Disney and Pixar because the Pixar and Disney compete directly in production stage currently and will compete directly in marketing and distribution stages in the near future if alliance with equity works well (i.e., high closeness). (d) Acquisition is a natural decision based on the framework due to low relevancy, low tradability, high closeness, and easy integration.
(a) Internal (organic) building is not a good decision for both Disney and Pixar because internal resources are not highly relevant to the targeted resources (i.e., low relevancy). (b) Contractual alliance is not a good decision for both Disney and Pixar because the targeted resources are not highly tradable on the market (i.e., low tradability). The current difficulties in renewing their contract in the case illustrates this point. (c) Alliance with equity is not a good decision for both Disney and Pixar because the Pixar and Disney compete directly in production stage currently and will compete directly in marketing and distribution stages in the near future if alliance with equity works well (i.e., high closeness). (d) Acquisition is a natural decision based on the framework due to low relevancy, low tradability, high closeness, and easy integration.
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
Transcribed Image Text:What is the Worst explanation on Disney-Pixar case based on Build-Borrow-or-Buy Framework below?
Strategic
Resource
Gap
Low
Low
High
Low
Revisit
How relevant
are internal
resources?
How tradable
How close
to your resource
partner?
How well can
you integrate the
target firm?
build borrow buy
options or
reformulate strategy
Key
Question
are the targeted
resources?
High
High
Low
High
Strategic Alliance
Internal
Development
Action
• Contract
• Licensing
Acquisition
• Equity Alliance
• Joint Venture
Buy-Borrow
or-Build?
Build
Borrow
Buy
Contractual
Alliance
Alliance with
Equity
(a) Internal (organic) building is not a good decision for both Disney and Pixar because internal resources are not highly relevant to the
targeted resources (i.e., low relevancy).
(b) Contractual alliance is not a good decision for both Disney and Pixar because the targeted resources are not highly tradable on the
market (i.e., low tradability). The current difficulties in renewing their contract in the case illustrates this point.
(c) Alliance with equity is not a good decision for both Disney and Pixar because the Pixar and Disney compete directly in production stage
currently and will compete directly in marketing and distribution stages in the near future if alliance with equity works well (i.e., high
closeness).
(d) Acquisition is a natural decision based on the framework due to low relevancy, low tradability, high closeness, and easy integration.
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