Today, Woody and Buzz Lightyear are as recognizable as Mickey Mouse and Donald Duck.
Weaknesses:
One of the core weaknesses revealed in the decade following Disney's early-90's animation renaissance was the lack of elasticity in its animation department. The company was unprepared for a set of lean years in which its growth had exceeded its ability to earn on its investment. According to Alcacer et al., "Some of the same features that observers credited for Disney Animations' success -- large staff, large budgets, and lots of time -- were also blamed for its demise. Disney Animation had just 275 employees in 1988; about 950 in 1994 for the release of the Lion King; and 2,200 at its peak in 1999.9 Competition for animators in the 1990s also caused salaries, which accounted for 80% of each film's cost, to balloon, with top animators' pay rising from $125,000 in 1994 to $550,000 in 1999. And these pay increases affected employees across the board." (p. 2)
Opportunities:
The acquisition of Pixar has represented the opportunity for Disney to continue to expand its brand universe, integrating characters from newly popular integrated films into its merchandising strategy, its theme parks and its copyrighted images stable.
Threats:
The greatest threat to Disney today is the nature of media sales today. With digital piracy having a significant impact on DVD sales, Disney's animated films are subject to the same declining value if not properly managed. Fortunately for Disney, this threat is pointedly limited by Disney's ability to maintain the visibility of its characters in theme parks and merchandise.
Options and Recommendations:
Disney's various options as it reached this crossroads in the mid-2000s included the possibility of severing ties with Pixar in the interests of creating its own CG studio; the possibility of severing ties with Pixar and establishing a similar partnership with one of its rivals such as DreamWorks; the possibility of renegotiating another temporary agreement with Pixary; and the possibility of purchasing the company outright.
The recommendation...
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