LO1 Task 1 - ownership

Hi, I'm working for Education UK, I'm investigating 20th Century Fox which is a film company, they are a subsidiary owned by 21st Century Fox who are owned by News Corporation who are a multinational mass media and headquartered in New York and was founded by Rupert Murdoch in 1979



Here are some key terms
•horizontal integration


Horizontal integration (also known as lateral integration) simply means a strategy to increase your market share by taking over a similar company.
•Vertical integration


Vertical integration is the process in which several steps in the production and/or distribution of a product or service are controlled by a single company or entity, in order to increase that company’s or entity’s power in the marketplace.
•Conglomerate


A conglomerate is a combination of two or more corporations engaged in entirely different businesses that fall under one corporate group, these are called subsidiaries.
•Independent


In business, an independent company as a term of distinction generally refers to privately owned companies (as opposed to those companies owned publicly through a distribution of shares on the market).
•Cross media ownership


The ownership of multiple media businesses by a person or corporation. These businesses can include broadcast and cable television, radio, newspaper, book publishing, video games, and various online entities.

•Ownership


20th century fox is a subsidiary of a cross media conglomerate called 21st century fox. They are one of the five biggest conglomerates in the world and 20th century fox are the sixth biggest film studio alone without including any of its other assets. News Corporation and 21st Century Fox own many assets, for example; Fox 2000 Pictures, Fox News, Fox International Channels, National Geographic Channels. As of 2013 20th Century fox is owned by 21st Century Fox yet people still knows it as to be owned by News Corp.



 · Operating model



Here I discuss the operating model; different parts of the company operate after the split by being more focussed on each branch of the company. They all work together in synergy to create products to a high standard. Both of these relate to strategies that are made to grow your business but they differ in approach. And most of the times which one to choose is not a very straightforward decision.  The horizontal distributional integration is a good factor for large companies like 20th century fox that are usually vertically integrated (just for profit purposes) because they can use the distribution experience of the subsidiaries to supply all consumers with high-class assets from cross medially owned conglomerates with their operating model. Therefore 20th century fox use their assets to further promote and distribute. And therefore as for 20^th century fox being horizontally integrated they use their wider conglomerate so therefore the sun news paper and Sky TV will promote a film like avatar. Internally the film production process helps to make sure the film is successful. Pre-production, post-production, and production parts work together to create the final product. For example the pre-production finance department are linked with the pyrotechnics and any other department during the production of the film as a budget given to them  and any effects on other departments effect the others for example; the script writers in pre-production effect the actors during production.


• Products


20th century fox produce many other types of media including films, as that is their specialism. Many of their films are well know because they have large budgets; some of their latest film released are: (August 13th 2014) Lets Be Cops, (August 5, 2014) Dragon Ball Z: Battle of Gods, (July 11, 2014) Dawn of the Planet of the Apes. Some of their most successful films are;


 All of 20th century fox's products are distributed to a mass audience whereas Warp have their products distributed to a niche audience which means their targeted audience is a lot more closed than 20th century fox. 20th century fox are enthusiastic about all their products as they entrust their audience to divulge their hard earned 'cash' on the well profitable business. Yet the do many cater for a large range of audiences with many relatable films and also television programs that they release. They also work largely around TV programs; some of their most successful TV series are Kung Fu Panda: Legends of Awesomeness (2011–present) (co-production with DreamWorks Animation and Nickelodeon Productions)


 Bob's Burgers (2011–present) (co-production with Bento Box Entertainment)


 American Dad! (2005–present) (co-production with Underdog Productions and Fuzzy Door Productions) (Moving to TBS in July 2014)


 The Simpsons (1989–present) (co-production with Gracie Films).


• Market Position & Competitors


Here shows the market position of 20th century fox, and in comparison Warp are not even in the top 10. We know that 20th century are a successful company as they have many large budget films and also that they have a 17.1% share in the market which is considerably larger than their competitors such as Warner Brothers. 20th century is a widely successful company, nationally and internationally as they have such a large target audience for many genres. The main well known competitors to 20th century would be, Warner Brothers, Sony, Universal and Paramount. All of those companies listed are all film producers therefore are all in competition together. 20th Century stand out from their competitors because their films always have a much larger budget which gives them the option of going over the top with their special effects or casting certain characters, therefore their films are always of a higher standard.