Industries: Ownership and Control

 

1) Why did Facebook buy Instagram for $1bn?
instagram was brought as Mark Zuckerberg's goal is to help spread this app and brand to even more people. “We think the fact that Instagram is connected to other services beyond Facebook is an important part of the experience.

2) What are the benefits for media companies of vertical integration?
  • Saves time,Reduces costs,Better products,Increased expertise,Improves marketability,Increased market control/share,Creates economies of scale

3) What are the benefits for media companies of horizontal integration?

Undergoing horizontal integration can benefit companies and typically takes place when they are competing in the same industry. The advantages include increasing market share, reducing competition, and creating economies of scale.

4) What is a subsidiary?
 A company that belongs to another company, which is usually referred to as the parent company or holding company

5) Give three examples of media companies that have used synergy to maximise the profit from a brand (there is one above to help you).

Facebook,Disney,Walkers

6) Read this BBC article on Disney buying 21st Century Fox. List 10 companies that are part of the Disney media empire. This graphic may help you: 

pixar,abc,espn,marvel,fox,walt disney studios,baby tv,a and e,disney streaming,21st century fox


7) Why did Disney buy Fox - what are the benefits?
so that Disney can expand itself, increase market share and raise market competitiveness at the same time through the horizontal merger with Fox.

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