Industries: Ownership and Control

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 1)Why did Facebook buy Instagram for $1bn?

 Facebook bought Instagram because they were making money and they bought it to make revenue.

2) What are the benefits for media companies of vertical integration?

 You can make more revenue because you get all the profits instead of other companies

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

You can buy other companies in their peak and therefore make more money.

4) What is a subsidiary?

A subsidiary is a company that is owned by a larger company

5) Give three examples of media companies that have used synergy to maximise the profit from a brand.

One example is Facebook Buying Instagram
Another Example is Disney Buying Pixar
The Last Example is Disney buying marvel

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

Pixar
Marvel
Dreamworks II
Hulu
ESPN
StarWars.com
ABC Entertainment
Disneyland Paris
Disneyland Resorts
Disneyland Inc.

7) Why did Disney buy Fox - what are the benefits?

Disney bought Fox to expand the empire and make more profits when they at their peak.


Comments

  1. Anonymous28 November 2023 at 05:54

    Level of detail is lacking - go back and make sure it is evident you understand what Vertical and horizontal integration are and how they are different

    ReplyDelete

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