Growth/Globalization strategies Forms 代写澳洲essay:经济学论文 of “external growth” – acquiring new businesses rather than producing new products HORIZONTAL INTEGRATION expanding in the same business, i.e., production of newspapers increases market share may involved acquiring new forms of distribution VERTICAL INTEGRATION merging production and distribution aspects of a business joining production with distribution transactional costs reduced leads to synergies (synergism) ensuring that the potential of a concept is fully exploited by a single corporation diversification why many non‑media companies own media companies These forms of expansion/integration reduce external uncertainty in the marketplace Offer control over all aspects of the market system Globalization strategies: set up local subsidiary acquire local companies Merge Conglomerates create internal markets Individual companies behave as though they are in competition but corporate oversight can ensure success of each through Shifting resources Eliminate unprofitable elements Alliance capitalism extends this to multi-conglomerate alliance Agreeing to the division of certain markets. ‘TRADITIONAL’ MARKET CAPITALISM AND COMPETITION DO NOT EXIST IN THIS ENVIRONMENT cultural exportation / importationEnabling factors high cost of production vs low cost of importation insufficient ad revenue available to fund local production due to growth of outlets less money avail. per channel (this opposite intended effects for Europe) reduced support for publicly funded production high launch costs of new stations leading to initial un-profitability no resources for domestic production market fragmentation works against introducing economies of scale in production in Europe (i.e., pan-European programming) thus not on equal footing with US production companies cultural products (ie, films) cost less when produced in major international and regional centers than locally technology ‑ has made delivery of cultural products around the world easier and cheaper (satellites and now digital transmission) nations choosing cultural isolation are made to pay a high price in economic isolation privatization and commercialization of national media has led to new markets further globalisation strategies co-production‑ offers shared risk, entry to new markets, ability to address local tastes problems with co-production: agreement on creative control and format, financing, linguistic barriers format transfer: marketing a valuable product that has essentially cost nothing to create localizing strategies collaboration between local and global players Global TV networks like www.liuxuelw.com/aozhoulunwen/ MTV and CNBC trying to create products for specific regions or countries, to beat local competition