Case Study: Strategic Alliance of HP and Disney.

Introduction
On October 9th 2003, Walt Disney Company, an international entertainment and media
enterprise, and global technology provider Hewlett-Packard (HP) declared a ten-year strategic
alliance for the purpose of developing innovative technologies and promoting Disney
consumers experiences. The arrangement was achieved by jointly disclosing Mission: Space
ride, which had been collaboratively designed and developed by HP and Disney employees for
several years. Mission: Space was located in Walt Disney World Resort at Epcot theme park,
Florida, including the following activities: Space Pavilion, Space Attraction, Space Advanced
Training 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 technology development when
HP wanted to recover from the business downturn and improve its public image. Meanwhile, by
using HP devices and technologies, Mission: Space ride provided Disney consumers with
weightless simulations and consumers would feel like travelling in space.
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 first client who bought eight oscillators to create the movie Fantasia.
It was HP and Disneys first cooperation. HP, headquartered in California, is one of the worlds
largest technology companies that provide 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.
Walt Disney Company
The Walt Disney Company is a diversified, international family entertainment and media
enterprise with affiliates including Walt Disney Parks and Resorts, The Walt Disney Studios,
ABC, Inc., ESPN, Disney Channel, Disney Consumer Products, television and radio stations and
Internet Web sites.
Fantasy Meets Technology
Disney uses HP to show how one can fly on the wings of technology and imagination.
In 1939, Disney purchased eight oscillators from HP founders Bill Hewlett and Dave Packard for
use in the sound design of Fantasia. Since this collaboration, Disney has relied on HP technology
for projects ranging from feature film development to a wireless translation device for hearing-
impaired and non-English-speaking park guests.
Walt Disney Imagineers came up with a unique concept: an attraction that allowed visitors to
experience the thrill of space flight. They had a dream of combining the technology of an
aerospace training simulator with classic Disney storytelling to create an experience that
accurately replicated the thrill of traveling through space.
As the computing power behind NASA's Mission Control, HP was the perfect technology
provider for Mission: SPACE. HP engineers and Walt Disney Imagineers relied on HP IT
architecture, workstations and servers in creating the most technologically advanced attraction in
Disney's history.
Now open at Epcot at Walt Disney World Resort, Mission: SPACE is perhaps the most
thrilling attraction ever created. Even real astronauts who've experienced it are impressed by its
accuracy. It's definitive proof that when creativity meets technology, truly everything is possible.
Better together
While Mission: SPACE showed what HP and Disney think could happen in the very distant
future, the two companies collaborated on a much closer future: the merging of entertainment
and technology products. Consumers increasingly use their computers to watch movies, listen to
music and play games. As the "entertainment PC" evolves, companies like Disney want to make
sure that a good chunk of what people watch, hear and do on it has digital mouse ears. HP, of
course, is interested in partnering with content creators and providers like Disney to build this
market.
A headset for the world
HP and Disney had already produced a product together: a headset that gives non-English
speaking guests at the entertainment giant's resorts translations of the stories that are part of the
various rides and attractions. For example, when a guest from Korea walks into the "Country
Band Jamboree" attraction at Disney World, the headset starts playing the songs in Korean, in
sync with the characters' movements on stage.
The headset grew out of an idea Disney had for a handheld device that would provide
information about attractions in the parks. Disney began developing the idea with Compaq, its
technology partner at the time. Eventually, handhelds were deemed too fragile and awkward for
guests and Disney decided to focus on an MP3-based headset. Although HP exited the MP3
business after the merger, the Compaq team on the Disney account kept the project alive,
knowing it would show Disney the kind of commitment they could expect from the new HP.
HP shepherded the project through to completion and arranged for the headsets to be built by one
of the company's contract manufacturers. Disney World now offers the headsets, which will
eventually be offered at other Disney parks as well.
Clearly, both companies gained plenty from this corporate alliance as the borders between the
technology and entertainment industries disappear. As Disney President Robert Iger told Forbes
magazine recently, "When we look at how Disney will grow, it's through a few key partnerships.
(HP is) more than a partner we have a lot of common interests."