Wednesday, 14 May 2014

Synergy


Synergy is a common action of the multi-media conglomerates who own the Hollywood studios. Often they will incorporate products from their different subsidiaries. For example, one of their Studios will produce a film, one of their TV studios will create a spin-off series, and one of their games manufacturers will produce a game. This will benefit the conglomerate as their products will be cross-promoted by each other, multiplying the profits for the conglomerate. Remember conglomerates are horizontally and vertically integrated meaning they have several companies in a number of different multi-media fields, which allows them easy access to synergy opportunities.

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