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Conglomeration: Time Warner's Oligopoly Competition

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Concentration: Much of the world and the media and entertainment industry are highly concentration, meaning it is controlled and owned by small unit of powerful companies. Time Warner's ownership is Concentration. Only several large companies can compete in the industry, where as it is made up of a small pie, which is why the media market has an oligopoly competition.
Conglomeration: Conglomeration is a related pattern of media ownership where the corporate practice of accumulating multiple companies and businesses through startups, mergers, buyouts, and takeovers. A media conglomeration example would be the corporation of CBS, which has controlled the network television and radio broadcasting business, owns 50% stake in CW network that shares with Time Warner. integration (both horizontal and vertical): …show more content…

An example of horizontal integration is the acquisition of Instagram by Facebook. The two companies, both in the same industry, wanted to strengthen their positions by buying out Instagram as a growth opportunity. Vertical integration is prime example of Apple Inc because it is hard to compete and it controls the major parts of the chain used to sell and make products.

Multinationalism: Multinationalism is the involvement, presence or partnership of many countries.

2 Identify and describe four specific examples of how the magazine employs strategies of profit maximization. Glamour employs niche marketing, logic of safety, celebrity and spectacle and advertising. Companies want to maximize their profits, which to do this they must understand what captures the attention of a specific group of the public (Ott & Mack, pg. 46). Glamour magazine engages in

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These grants helped to build over 18,000 acres of track. 3. Vertical integration is a type of organization in which a single company controls and owns the entire process from the raw materials to the manufacturing and sale of the product. Horizontal integration is a strategy where a company creates

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Andrew Carnegie used vertical integration in the steel business to great profit. His operation controlled every step of the process from mining the ore, mining the coal, shipping the ore and coal to the foundry, actually making steel from the ores, owning and operating ships and railroads to transport the raw materials and finished goods, etc. What better way to make your business profitable than to arrange for much of the money it spends to be paid to another one of your businesses? Keeps the money in the family, prevents some other company from putting the screws to you by cutting availability or raising prices, and the peripheral businesses (such as railroads and shipping) may be stronger competitors for other business because they have

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1) Andrew Carnegie used vertical integration, controlling every step in the process of manufacturing a product, dominating the market. Vertical integration is when the company owns all means of distribution from beginning to end, this makes supplies more reliable and improved efficiency. It controlled the quality of the product at all stages of production. Horizontal integration was used by John D. Rockefeller and is an act of joining or consolidating with one’s competitors to create a monopoly. In Ohio in 1870 he organized the Standard Oil Company.

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Who owns comcast. Comcast is a publicly traded company listed on the NASDAQ stock exchange, it's owned by Institutional and individual shareholders. Top 5 Institutional shareholders of Comcast include: The Vanguard Group, Inc. - a large investment management company based in the U.S. that owns about 8.6% of Comcast's outstanding shares. BlackRock, Inc. - another large investment management company based in the U.S. that owns about 7.3% of Comcast's outstanding shares.

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1) Vertical Integration is when a company controls every step of its business from the production of its own supplies to the distribution of its product which the company avoids a middlemen. On the other hand, Horizontal Combination is when one company buys competing companies in the same industry. 2) The Dawes Act divided the land of almost all tribes into small portions that were distributed to Indian families who would adopt habits of civilized life to become American citizens. The remaining land was sold off to white purchasers.

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Rockefeller’s lawyers created trust to hold stocks from all the combined firms, managing the entire business. On last example of vertical integration is Gustavus Swift who had engineers create refrigerated cars to ship meat. As Swift controlled all aspects of production as he made huge profits, his work force was under paid. He also used predatory pricing to keep competitors on their

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The concept of vertical integration received an immense

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Disney pursues vertical integration by increasing its distribution channels for its products in house. This allows Disney to not only have control over the entire product my beginning to end consumer, but it also allows for Disney to increase its profits by cutting costs. An example of this in the case is that Disney creates its own content in-house for its channels like ABC. When Disney first acquired ABC, ABC had deals with Dreamworks, which was a rival company created by a former Disney employee, to finance jointly the cost of developing new TV shows. For Disney, this deal made no sense for them once they purchased ABC because Disney has their own production studio.

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In addition to synergies another strategy is to control all creative and physical possess in the production of media, evidence of this is Warner Bros, they can buy a script only entrusting it too companies they own to film, produce and distribute the finished product. Allowing Warner Bros to profit from all stages, this form of market dominance is described as vertical integration. With the current global reach of conglomerates to dominate in this way it is easy to see how media concentration has occurred and how media companies have managed to diversify into other markets, this is seen by Virgin that not only provide media but financial services, healthcare and spaceflight (Just, 2009). However, these conglomerates are under threat from new media platforms and technological convergence. This means that the tech giants like Apple and Google can produce the technology that will allow you to view media but will always give the media they control an

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Comcast is the largest internet provider in the world. Comcast is split into two businesses Comcast Cable and NBCUniversal. Comcast has 5 segments total which the film entertainment segment provides fourth most in revenue and operating income. We will be analyzing Comcast’s film entertainment segment. Comcast currently has the 3rd most market share with 14.9%, which is behind Walt Disney Company 19.3% and 21st

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Subsequently, the celebrities that are symbols for these products become a product in themselves. In some cases, we buy products purely because a celebrity has worn it, endorsed it, or has been associated with it in another type of way. A consumer’s inclination towards materializing a lifestyle of a celebrity leads to the merging of the corporate and the self. This is extremely prevalent with the Kardashian family. The Kardashian family became celebrities through their reality television show Keeping Up with the Kardashians.

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This is also a good example of integration. The fact that all companies worked together to achieve a common goal, attest to that

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Comcast and Time Warner Cable have recently struck a deal. The two cable companies are waiting for their merger application to be approved by the Federal Communications Commission, the government agency that regulates communications through the media. Both Comcast and Time Warner claim that this merger is more to the benefit of their consumers, increasing services provided by the companies. However, this “merger” is nothing more than a takeover by Comcast, the company trying to increase the monopoly it is becoming.

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Market Structure - Oligopoly Oligopoly is a market structure whereby a few number of firms owns a lion’s share in the market. This market structure is similar to monopoly, except that instead of one firm, two or more firms have control in the market. In an oligopoly, there are no upper limits to the number of firms, but the number must be nadir enough that the operations of one firm remarkably influence and affects the others (Investopedia, 2003). The Walt Disney Company is categorized under an oligopoly market structure.

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They are differentiated by their products such as soft drinks and soap powder. There also exist little firms who produce similar products such as petrol. However, in oligopoly, there are barriers to enter the market. Similar to monopoly, the barriers are no different, and it differs from one industry to the other. This is why the firms in oligopoly are interdependent with each other, because the firms all have large market shares and each of their actions would affect the rest, so any decision-making will be based on their competitors’ reactions.

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