Monday, 14 December 2015

Horizontal integration

Horizontal integration:  Horizontal Integration is a Media Company's Ownership of several businesses of the same value. A Media Company can own a Magazine, Radio, Newspaper, Television and Books.
Benefits: The Company can diversify its products and sell those products on a larger market, to reduce the costs to produce its newly diversified products or services, and reduce the amount of external competition.
Disadvantages: One disadvantages can include legal repercussions if the horizontal merger results in a company

Vertical integration:
Vertical integration happens when two organizations or businesses at various stages of production merge.

Benefits:
It enables you to invest in greatly specialized assets.
Disadvantages: Decreased Flexibility. This is because of the downstream or upstream investments that the business will make.

Co-operatives: The media cooperatives is a relatively new form of cooperative. They are a form of alternative media, critical of capitalism, with left-wing stances. Media Cooperatives are a special form of service cooperative, in which customers and service providers usually unite to oppose the pure profit motive. In contrast to mainstream media companies, media cooperatives pursue more idealistic goals.

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