Structure of media organisation


Structure of media organisation
 
 
Horizontal integration
Horizontal integration is a stage where a company is ready to expand. They do this by increasing production of goods also the service in regards to the supply chain. This can be done internally via acquisition or merger.
A good example of horizontal integration is Facebook's acquisition of Instagram in 2012 for a reported $1 billion. Both Facebook and Instagram operated in the same industry and were in similar production stages in regard to their photo-sharing services. Facebook, looking to strengthen its position in the social media and social sharing space, saw the acquisition of Instagram as an opportunity to grow its market share, increase its product line, and reduce competition and access potential new markets. All of these things came to pass, resulting in a high level of synergy.
Pros – larger market
            Increase of income
            Affective sales
            Quality improvement
            Customer loyalty
 
Cons - Competition 
             Loss of income – higher insurance, rent,
             Loss in profit
            
Vertical integration
The combination in one firm of two or more stages of production normally operated by separate firms.
 
 
 
 
Co-operative
Co-operative is also known as ( coop ) Within this type of brief there are usually two or more companies that are hired by the client to work to the brief they have written for the specific project they’re wanting to be completed. After both companies have received the brief they can then proceed to work together to produce the product. If there is a disagreement or conflict in ideas there can be a negotiated brief in order to resolve these issues.
 
Advantage – Two companies have stronger aspects to one.
Disadvantage - Prone to disagreement and conflict.

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