INTRODUCTION
Hello, my name is Shayi Aluwoade and I work for Educational Wise and have been asked to investigate a case
study for the well known conglomerate company 20th Century Fox.
20th Century Fox are a conglomerate company which means that
they are a combination of two or more corporations (can also be related to as
subsidiaries) so this basically means that 20th Century Fox are a
multi-industry company. There are also independent company’s such as Warp films
which means that they operate all by themselves and not via subsidiaries as
they are free from outside control. The difference between conglomerate and
independent is the fact that conglomerate operates with a combination of more than
two subsidiaries whereas an independent company operates all by itself.
OwnershipRupert Murdoch owns 20st century fox; they happen to be an conglomerate company as they are made up of many subsidiaries. Some examples of subsidiaries that 20th Century own are 21st Century Fox, and channels such as Fox sport, National Geographic, Newscorp who make newspapers such as “the Sunday Times” and “The Sun”, Sky Television in New Zealand, and many more.
20th Century Fox are not an independent company as I stated before they are made up of subsidiaries which is a completely different structure to an independent company
20th Century Fox are also an example of cross, media ownership as 20th Century Fox own various media products like Newscorp etc. which means they can cross promote their product as for example in the newspapers fox own, they could advertise their films and give them good ratings.
Rupert Murdoch also of course makes a profit which makes 20th Century Fox a commercial company, they also a public service broadcaster as the subsidiaries of 20th Century Fox , like Fox News are most likely funded by the public with things like TV licenses etc. Also 20th Century Fox and Sky News Zealand which is payed for by the public who happen to buy Sky.
Operating model
There happen to be to 2 types of integration, one being vertical integration and one being Horizontal integration, There are examples of these types of integration in Fox, as Rupert Murdoch and the 20th Century Fox team control the production, distribution and exchange of its products.
20th Century Fox is also an example of horizontal integration as the conglomerate worked alongside the well-known film company, DreamWorks as these are affiliates, this also creates synergy between cross promotion.
20th Century Fox are a conglomerate and are not an independent company, so therefore they can be classed in vertical integration, but could also fit into horizontal integration as I stated earlier, they worked alongside DreamWorks.
Some other examples of horizontal integration in 20th Century Fox that are also subsidiaries of 20th Century Fox are: FOX TV, bSKYb, Talk Radio (Radio), The Sun (newspapers), Fox Home Entertainment (DVD/BlueRay). However Vertical integration for 20th Century Fox tends to happen within its own mediums that allow audiences to consume products, (e.g. DVD/BlueRay division).
The integrations make it easier for the company within its vertical alignment as companies for example 20th Century Fox have to produce subsidiaries and also distribute and exchange their media creations; this happens to be called the Film Production cycle, there is also another model, which is called the film production process,
this is the way in which companies can control pre-production, production and post production.
Products
20th Century Fox happen to Distribute many types of media including a wide range of films such as avatar, home alone, predator and many more. Another type of media that they produce is one of their subsidiaries which is Newscorp who own a lot of the mainstream media including “The Sun” newspaper and one of Americas biggest news companies being Fox news, also channels such as national geographic and Sky Asia so therefore from this I can infer 20th Century Fox specialise in many media types. Their company happens to mainly specialise in films though as you can see with the film Avatar which made record sales and therefore is one of the most well-known films to date. Also Newscorp is very well known as Fox news is arguably the biggest news corporation in America, which makes this a very well-known TV station.
They cater to everyone as they have a very wide range of films for example a graphic film like alien could be suitable for teenagers, adults and also films like home alone that are targeted towards young children and families as it is a Christmas style film and Christmas is very family orientated.
Market Position
20th Century Fox are very successful in their particular field as they are an established worldwide company as for example the film predator received a 7.8 out of 10 rating on the well-known film critic website “imbd” by 263k people which shows 20th Century Fox must be very successful as it has maintained such a high rating by a substantial amount of people, not to note the fact that the film predator received an overall 89 million US dollar net worth, which shows Fox must have a high market position as their films are getting high ratings and bringing in big amounts of money, the hit movie of 2009 Avatar, also proves this as it made a worldwide 2.3 billion US dollar worldwide gross which shows it had a very high consumption and is therefore successful internationally as well as nationally, they tend to operate with more subsidiaries than say Warp Records which shows that they operate differently, this proves that they relate and operate differently to other companies in the same field like I mentioned with Warp. The revenue of Fox also proves that it is a successful company and it happens to be worth 11.3 billion so this shows that fox make a huge income and are therefore have a very high market position, which they do as, they had the highest market position throughout 2014 with the company’s Buena Vista, Warner Bros and Sony trailing behind them as they made an overall 10 billion in that year.
Market position can also be determined by successes e.g. in awards won by the films they and their subsidiaries have produced, this could determine if they are successful as a company nationally
They specialise in all areas with films ranging from avatar to alien, Avatar happened to win 87 awards including best visual effects and best editing.
Competitors
The main competitors to 20th Century Fox are Buena Vista who happen to be a subsidiary of Walt Disney, they are considered competitors as they both make films and as of the end of 2014 actually had the second highest market position only slightly behind 20th Century Fox. However as of 2015 Universal have actually overtaken 20th Century Fox as they now have the highest market position with 20th Century Fox falling to 4th in the overall leader board as Buena Vista and Warner Bros are 2nd and 3rd. The organization stands out to competitors in some ways as for example 20th Century Fox own many subsidiaries which include Newscorp who happen to own Fox News, newspapers including "The Sun" and many more. 20th Century Fox also own many other TV services and channels for example Sky Asia, National Geographic, Fox sport.
Link to video Link to video
No comments:
Post a Comment