Thursday, 25 October 2012
Mega Media
Vertical Integration
A situtation when two firms in the same industry but at different stages of production come together.
Production Company --> Marketing Company --> Distribution Company --> ExhibitionCompany
When a parent company owns lots of companies at different stages of production. Horizontal Intergration is where parent companies own smaller companies at the same stage of production.
News Corporation:
20th Century Fox - Fox Searchlight - Blue Sky
The Sun - News of the World - Myspace
Sky - ITV - FOX
KEY WORDS
Parent Company - A large company that can absorb other small companies to expand its empire
Subsidiary Company - A small company which is owned by another large company
Conglomerate - A group of comapnies owned by one large company which may have a diverse variety of media interests
Veritical Integration - A conglomerate owning more than one step in the supply process or value chain
Horizontal Integration - A number of companies in the same stage of the production process owned by one conglomerate.
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excellent blog very well written
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