2. Corporate Strategies

Question 1

Describe the vertical supply chain

Answer 1

Production (creation of media content), packaging (assembling the content into marketable products), and distribution (delivering packaged media products to consumers)

Question 2

What are the implications of technological convergence?

Answer 2

Technological convergence is altering how we interact with technology and consume media. It’s breaking down barriers between industries, creating new possibilities for content creation and distribution, and revolutionizing the way we communicate and access information

Question 3

How does globalization affect media markets?

Answer 3

It opens national markets, fosters transnational integration, creates a borderless economy, and reshapes market structure

Question 4

Strategies for corporate growth: horizontal expansion

Answer 4

Merging or partnering with firms in the same stage of the supply chain or in the same activity

Question 5

Strategies for corporate growth: vertical expansion

Answer 5

Expanding into preceding or succeeding stages of the supply chain

Question 6

Strategies for corporate growth: diagonal expansion

Answer 6

Diversifying into unrelated or complementary sectors (decathlon roof)

Question 7

What role do managers play in media firms?

Answer 7

Manage day-to-day operations, influence firm direction and growth, may pursue personal interests and expansion

Question 8

What are the advantages of horizontal integration?

Answer 8

Economies of scale and scope, productivity gains, negotiating power, enhanced market power

Question 9

What are the advantages of diagonal integration?

Answer 9

Efficiency gains, brand recognition, cost reduction, risk reduction

Question 10

What are the advantages of vertical integration?

Answer 10

Cost reduction, market power, security and control, predictable revenue stream, brand building