Thursday, 19 November 2015

Definition of Vertical integration in media

Definition of Vertical integration in media 


When a company expands its business into areas that are at different points on the same production path, such as when a manufacturer owns its supplier and/or distributorand all so vertical integration is an arrangement in which the supply chain of a company is owned by that company. Usually each member of the supply chain produces a different product or (market-specific) service, and the products combine to satisfy a common need. It is contrasted with horizontal integration, wherein a company produces several items which are related to one-another. Vertical integration  has also described management styles that bring large portions of the supply chain not only under a common ownership

Disney 
its one of the biggest Hollywood studios, they have 4 basic division, movies. television parks resorts consumer product 
The Walt Disney Company operates through four primary business units, which it calls "business segments": Studio Entertainment, with the primary business unit The Walt Disney Studios, which includes the company's film, music recording label, and theatrical divisions; Parks and Resorts, featuring the company's theme .. 
The Walt Disney Studios
Corporate
1 Animation
2 Lucas-film Ltd.
3 Marvel Studios
4 Distribution
5 Disney Music Group
6 Disney Theatrical Group
7 Disney Studio Services
8 Studio Production Services
Conglomerate horizontally integrated
a company develops in to other areas of one industry, meaning they can benefit from other markets. This can be done by developing a company on that area of production like producing films by buying out/ taking over another company in the same stage of production.
For Example 
Benefit  
Disney core product was 2D animation but they horizontally integrated in to live action films. they develop a branch of they Disney company to reach new audience and therefore control  more of the film industry make more profit 






















 

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