VERTICAL INTEGRATION
WHAT IS IT?
Vertical integration is a strategy where a firm acquires business operations within the same production vertical. It can be forward or backward in nature. Vertical integration can help companies reduce costs and improve efficiencies by decreasing transportation expenses and reducing turnaround time, among other advantages. However, sometimes it is more effective for a company to rely on the established expertise and economies of scale of other vendors rather than trying to become vertically integrated.
CONGLOMERATE ---------> STUDIO PARENT ---------> MAJOR FILM STUDIO UNIT ---------> FILM PRODUCTION COMPANY ---------> DISTRIBUTION
THE BIG SIX
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COMCAST ---------> NBCUniversal ---------> UNIVERSAL PICTURES ---------> FOCUS FEATURES ---------> NBCU ENTERTAINMENT JAPAN
SONY ---------> SONY PICTURES ---------> COLUMBIA PICTURES ---------> SONY PICTURES CLASSICS ---------> TRIUMPH FILMS.
THE WALT DISNEY COMPANY ---------> WALT DISNEY STUDIOS ---------> WALT DISNEY PICTURES ---------> DISNEYNATURE ---------> FOCUS WORLD
AT&T ---------> WARNERMEDIA ---------> WARNER BROS. PICTURES ---------> ROOSTER TEETH ---------> HBO FILMS
FOX ENTERTAINMENT GROUP ---------> 20TH CENTURY FOX ---------> FOX SEARCHLIGHT PICTURES ---------> FOX STAR STUDIOS
NATIONAL AMUSEMENTS ---------> VIACOM ---------> PARAMOUNT PICTURES ---------> NICKELODEON ANIMATION STUDIO ---------> VIACOM18 MOTION PICTURES
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