Hp & Disney Alliance

Strategic Analysis on HP-Disney Alliance Introduction On October 9th 2003, Walt Disney Company, an foreign entertainment and media enterprise, and global engineering provider Hewlett-Packard (HP) declared a ten-year strategic bond for the purpose of development innovative technologies and promoting Disney consumers experiences. The arrangement was achieved by jointly disclosing electric charge Space ride, which had been collaboratively designed and real by HP and Disney employees for some(prenominal) years, reported by Business Wire (9 October, 2003). billing Space was located in Walt Disney existence Resort at Epcot theme park, Florida, including the following activities Space Pavilion, Space Attraction, Space Advanced Training science lab and Space Cargo Bay. It was highly praised by Fiorina, then chief executive at HP, that the cooperation was based on both business expansion and engineering science development when HP wanted to recover from the business downturn and im prove its public image (Takahashi, 2003). Meanwhile, by using HP devices and technologies, Mission Space ride provided Disney consumers with weightless simulations and consumers would feel like travelling in space (Takahashi, 2003).Company Profile Hewlett-Packard Company Hewlett-Packard, established in 1939 by Bill Hewlett and Dave Packard from Stanford University, was initially to produce an electronic instrument called audio oscillator. The Walt Disney studio was HPs inaugural client who bought eight oscillators to create the word picture Fantasia. It was HP and Disneys first gear cooperation (Hewlett-Packard Company, 2012). HP, headquartered in California, is one of the populations largest technology companies that provide computer software, services and technology products to its customers.During the economic recession in the early 2000s, numerous companies reported losses and it was essential for HP to seek opportunities to sustain its information technology advantages (C hen et al. 2011). The Walt Disney Company Walt Disney and Roy Disney founded Disney Brothers Studio in 1923 in California for cartoon production. In 1971, the first Disney institution opened in Florida and several years later, theme pose and Disney MGM studio were set up subsequently. Then in 1986, the firms name was changed to The Walt Disney Company (The Walt Disney Company, 2012).Now it is a worldwide entertainment and media company by operating in cardinal sectors theme parks and resorts, consumer products, media networks, interactive media and studio entertainment. In the early 2000s, Disney expanded its business almost the world by building theme parks, collaborating with Eastman Kodak, Bank One and Visa to attract more consumers. consequently the ten-year alliance with HP was arranged for both technology and entertainment development (The Walt Disney Company, 2012).Alliance Design When Disney animation engineers first came up with the simulation of space travelling Miss ion Space ride, they realized it was crucial to find a confederate that could perfectly combine the classic Disney adventures with the technology of aerospace simulation (Disney + HP, n. d. ). HP then became Disneys partner because it delivered a wide range of supports from Disneys visual effect to animation tasks. Then a contractual alliance between HP and Disney was formed.HP first offered infrastructure to deliver digital equipment, then it manufactured devices and ironware that serving Disneys consumers (Fried and Spooner, 2003). Not only did HP highlight Walt Disney in its $300 million advertisements, it in addition launched sweepstakes to push Mission Space into public (Camp, 2004). In return, what HP benefited was that it could acquire consumers data for further developments and promotions. regular though the potential benefits for HP was hard to estimate, HP was still quite satisfied with the volume of visitors (Camp, 2004).Above all, the cherish creation logic for th is alliance goat be categorized as co-specialization. Both parities in the HP and Disney alliance were focusing on their advantages. Disney initiated the thoughts and ideas for the projects because they k bleak what they would be doing and how they could achieve it. On the other hand, HP provided Disney with information technology support and technical products that help to build up the projects. Apart from the personal computers, web servers, relevant software nd 13,000 printers offered by HP, it cooperated with Disney to develop Ears to the world, which was a handset for non-English speaking consumers (Banke, 2003). As pointed out by Carly Fiorina, HP CEO, every process is being digitized right now, every physical analogue process entrust become a digital one every last one, and the alliance will focus on the creative process and content delivery (Sutton, 2003). It is obvious that all HP and Disney desired for the alliance is the junto of traditional Disney elements and new in formation technology.Alliance Management HP and Disney started their relationship 73 years ago when Disney purchased oscillators for the movie Fantasia in 1939. Clarke and Columnist (2003) believed that now it was the power behind Disney that made HP offer 13,000 printers, 10,000 servers and 70,000 personal computers to Disney. They in addition estimated that of the USD 100 million cost on Mission Space, HP will pay almost USD 50 million according to its 10 year contract. So in the alliance each party negotiated to break equally on capital.Reported by Business Wire (11 September, 2007), Michael Mendenhall, who had been working in Disney as an executive for past times 17 years, was employed as senior vice president chief marketing officer by HP. From then on, Michael would be in charge of HPs marketing operations as rise up as operations for Walt Disney Parks and Resorts. Therefore, the relationship between the two companies would be closer than ever as Michael was experienced in both industries, and the continuing cooperation of Innoventions Dream Home proved that the alliance was under swell management (China Business Newsweekly, 11, February 2008).Alliance Performance As referred in The Walt Disney Company Annual Report 2004 (2004), the revenues in parks and resorts segment for the fiscal year was USD 7,750 million. It increased by 21% compared with year 2003. The report stated that the Walt Disney World Resort drove USD 609 million of the total increase, which was attributed to high theme park attendance, reflecting the continued success of Mission Space as well as the success of the alliance (Appendix 1). Meanwhile, Hewlett-Packard Company Annual Report 2005 (2005) also eported a total net revenue increase in 2004, from USD 58,799 million in 2003 to USD 64,046 million (Appendix 2). Therefore, from financial perspective, both companies were successful during the following one to two years after they formed the alliance. From objective and perceptual a spects, the HP and Disney alliance was also successful. When Mission Space ride first opened, the continuing promo attracted more than 1. 1 million tourists and the ride still drawing more and more customers every year (Camp, 2004).HPs Karen Jones believed that the alliance was the greatest combination to two famous brands and it success was because of the effort and time that HP and Disney had put into (Camp, 2004). Al Weiss, president of Walt Disney World Resort, praised the cooperation and approved that HP was the perfect partner to present Disneys ideas and thoughts into reality (Banke, 2003). military rating of the Alliance Personally I believed the alliance was a breakthrough for both companies, especially when the US rescue was suffering recession in the early 2000s.The alliance started with a good design because HP and Disney knew what voice each party could bring. In co-specialization, the alliance scope was well controlled and conflicts were reduced because each company divided their values and information on what they did best, thus increasing productivity and reducing research and development costs. Since HP and Disney had previous co-working experience (Hewlett-Packard Company, 2012), it would be easier for them to managing the alliance. By allying with each other, HP and Disney created a win win situation.HP gave Disney the calamity to realize its space travelling simulation and reinforced Disney being the world leading enterprise in the entertainment and media industry. On the other hand, Disney helped to strengthen HPs place in the technology industry. Disney developed easier accesses to its consumers and HP obtained numerous consumer data for further promotions. In addition, they both benefited from the growth of revenues and market share. Above all, it can be concluded that the alliance is aligned with its performance. Future for the Alliance The future for the alliance is bright and of vast potential.Followed by the appointment of Micha el by HP in 2007, HP and Disney were cooperating on more and more technological entertaining facilities thereafter. Despite of Mission Space ride commenced in 2003, the alliance was focusing on new technology products in recent years, such as Innoventions Dream Home. In 2008, The Disneyland Resort reached another treaty with HP, Microsoft and Taylor Morrison for the framework of Innoventions Dream Home ( major Integrators Partner with Disney, 2008). This project aimed to introduce new concepts of home by mixing technology elements into it.Innoventions Dream Home attempted to create a high- tech, high-touch experience for its guests and illustrate how technology was involved in peoples life. The continuing alliance allowed HP to provide its newest products and software to Disney (Major Integrators Partner with Disney, 2008). As recommended by Ed Grier, president of Disneyland Resort, he believed that it was an inspiring alliance that brought Disneys imaginations and HPs technology t ogether again (China Business Newsweekly, 11, February 2008). Reference List Banke, J. 003, TalkDisney, Florida, viewed 14 October 2012, Camp, S. 2004, Marketing Mission By HP and Disney, Brandweek, vol. 45, no. 12, pp. 29, viewed 14 October 2012, ProQuest Central. Chen, C. , Lim, J. and Stratopoulos, T. 2011, IT Capability and a Firms Ability to domesticize from Losses Evidence from the Economic Downturn of the Early 2000s, Journal of Information Systems, vol. 25, no. 2, pp. 117-144, viewed 11 October 2012, ProQuest Central.Clark, S. and Columnist, S. 2003, HEWLETT-PACKARD ON BOARD AS SPONSOR OF EPCOT RIDE FINAL EDITION, Orlando Sentinel, 10 October, pp. C1, viewed 17 October 2012, ProQuest Central. Disneyland Resort Disneyland Resort Reaches Agreement with Microsoft, HP, life story/ware and Taylor Morrison on Innoventions Dream Home, 2008, China Business Newsweekly, 11 February, pp. 191, viewed 18 October 2012, ProQuest Central, ISSN 1945-5984. Disney + HP, n. d. , HP Solutions , California, viewed 14 October 2012, http//welcome. hp. com/country/us/en/msg/corp/htmldisney. html Fried,