Which has implications for both companies

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Reference no: EM133340600

Case: Political: The tax rate has increased in the past 5 years, which has implications for both companies.

Economic: The net sales of Disney have increased year by year, indicating strong demand for their products and services. Meanwhile, Pixar has seen its revenues decline in the past few years, indicating a shift in the industry and a decrease in demand for their products and services.

Technological Factors: The transition from 2D to 3D animation has been difficult for both companies. Disney has struggled to adapt to the new technology, while Pixar has been able to capitalize on it with successful films such as Finding Nemo and Toy Story.

Social: Disney has been successful in utilizing the creativity of its employees, allowing them to freely express their ideas and create new and exciting story lines. Pixar has also been successful in this area, with its focus on creating unique and entertaining stories.

Environmental Factors: Both companies have made efforts to create open parks and attractions for their customers. Disney has been successful in creating a global presence, with their parks located in multiple countries. Pixar has also made efforts to create an immersive experience for their customers, with attractions such as the Pixar Play Parade.

Legal: Disney and Pixar entered into an agreement in 2006, which was intended to bring the two companies closer together. However, the agreement has not developed as expected, and the relationship between the two companies has become strained. This has implications for both companies, as they will have to find ways to work together in order to remain competitive in the industry.

Reference no: EM133340600

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