media company operating systems

1. vertical & horizontal intergration:
     vertical :  a strategy where a company owns/controls different businesses in the same chain of production (eg its suppliers, distributers, cinemas). This integration helps companies to improve efficiency by decreasing transportation expenses, and it also reduces costs and helps production become much more streamlined
     Horizontal. : this involves media companies owning several businesses of the same value (for example a company owning a magazine, TV channel, or radio). The majority of media companies have horizontal integration. This type of integration is beneficial to the company as it makes the company more money and help to improve popularity as the name becomes more well known.

2. Synergy
    This is the intentional simultaneous release of multiple products in order to boost both of them. Its often used by media conglomerates to work together to promote linked products across different media platforms. They have a larger combined affect than if the products existed on their own (an example would be a film and a game about the film being released at similar times to promote each other)

3. Cross media ownership

    Media cross-ownership is a situation in which a single corporate entity owns multiple types of media companies (for example one entity owning a newspaper, TV station, and radio). The advantages of cross media ownership is that the bigger the company, the bigger the purchasing power, and so the can produce products at a reduced cost which increases profit margins. As well as this they can take advantage of synergy, boosting more than one products at once, also owning a diverse range of companies increases the security of the business because if one market fails they can focus on another.


4. The value chain 2008

   value chain is a business model that describes the full range of activities needed to create a product or service from start to finish (eg. Design, production, distribution, ect) . It aims to look at and analyse business activities in order to find various competitive opportunities that will improve efficiency and increase profit margins.