Wednesday, 21 May 2014

11. interation- conglomerate

Vertical Integration:

In the early 1900s, a lot of films were being distributed through Paramount Pictures. The company essentially ran the film making industry by owning other companies, such as Famous Players, and requiring that their movies be ran through them. This way of controlling the film industry is called vertical integration. As far as we have come in movie production since the 20th century, one would not assume that vertical integration would play a role in film production today. However, after viewing Walt Disney's conglomerate, it is evident that vertical integration is still important in modern day film companies. during the process of vertical integration disney goes through all the companies they own as shown above to process a film, for example if they were to make an animation they would use Pixar as they make the animations,and disney own Pixar. also to process a film Disney would distribute through Mirrmax and then sell it in a Disney store.

Horizontal Integration: 

Walt Disney owns many studio entertainment, consumer product companies, and media networks. these form a horizontal integrated industry because all of them are part of the same business line and act together to increase efficiency, Walt Disney is formed by different business line sub companies, allowing the organization to plan, produce and advertise. an example or horizontal integration is the BBC, if the BBC wanted to gain information they would send one person, as the BBC own many tv channels and radio stations the will send out one resource and then share the information out with their companies.