Horizontal & Vertical Integration

Question 1

1. Vertical integration is where a conglomerate acquires all stages of what? (4).
2. What don’t they lose with vertical integration?
   - What is reduced?
3. It also gives them ultimate what?
   - They can also develop what kind of expertise/talent?
4. Name a conglomerate that practices Vertical Integration?

Answer 1

1. Production, marketing, distribution and possibly an exhibition platform.
2. Money.
   - Production costs.
3. Creative control.
   - ‘In house.’
4. Disney.

Question 2

1. Horizontal integration is the process of _______ or ________ with other media companies involved in _______ _______.
2. Name a conglomerate that practices Horizontal Integration.
3. What is the biggest advantage of Horizontal Integration?
4. It helps companies _______ in size.
   - Helps them _________ product offerings.
   - And expand into what?
   - What can it also broaden?

Answer 2

1. Buying or merging, similar sectors.
2. Disney.
3. Eliminating competition.
4. Expand.
   - Diversify.
   - New markets.
   - Audience base.