Peer Assessment
Key words not highlighted in yellow= missing
- Conglomerate
- Cross Media Ownership
- Independent
- Distribution
- Consumption
- Film Production Process
- Film Production Cycle
- Vertical Integration
- Horizontal Integration
- Subsidies
- Synergy
- Joint Venture
I need to make sure that I replace some of my words with the key words in order to get a better making for the quality of my script.
Introduction
Hello, my name is Keenen Jeremiah Smith and I have been asked "by" Education Wise produce a series of educational resources for level 3 media courses.
I will be looking at the ownership, operating model, products, market position and the competitors of 21st Century Fox.
Ownership
21st Century Fox is a conglomerate company founded by Keith Rupert Murdoch, who is the founder, chairman and CEO of Newscorp, which is the second largest media conglomerate in the world. Newscorp is the world’s leading newspaper company which has other subsidiaries working under their supervision. Newscorp is also the parent company alongside 21st Century Fox; these two companies own a large branch of subsidiaries that work under their supervision with different roles to meet their specific areas of work.
It is apparent from the information available that 21st Century Fox’s subsidiaries operate as a cross media company, which means that they produce merchandises for multiple media organisations, an example of this would be 20th Century Fox and Fox, the two subsidiaries specialise in two different types of media, 20th Century Fox is in charge of the movie production whereas Fox is in charge of television/ broadcasting. 20th Century Fox have done a few collaborations when it comes to producing media products, 20th Century Fox have collaborated with other companies such as: HP and Lightstorm entertainment to create avatar digital experience.
The film clip I am going to be using is from the movie ‘Big Mommas House’; this is because it is quite a very successful movie produced by 20th Century Fox.
Operating Models
While I was doing more research into 21st Century Fox I came to understand that the way 21st Century Fox uses its subsidiaries in terms of an operating model is by vertical integration, this means 21st Century Fox as a conglomerate company have full control of the production, distribution and exchange of their products. The reason 21st Century Fox are able to use vertical integration is due tot the fact that they have quite a lot of subsidiaries that can help them in terms of producing and promoting their product. I compared 21st Century Fox with Warp to get a better understanding on how similar and different these two companies are from each other, what I came to understand when it make to similarities with these two companies were that they both go through the same process in terms of promoting their product by some stages of vertical integration although the main difference is that due to the fact that Warp is an independent company it doesn't have the subsidiaries required to complete the process of vertical integration. This means Warp have to go down the pathway of horizontal integration, meaning they have to collaborate with different companies in order to achieve their target goal when it comes to either the production, distribution or the exchange of their product. Due to the fact that Warp aren't as big a conglomerate as 21st Century Fox means they have to do a lot of collaborations with companies such as channel 4 and Film 4 to help promote their media products.
Products
We know 20th Century Fox is a successful company by looking at their market shares. If you look at the market shares from January 1st to September 6th you can see that 20th Century Fox rank 4th in terms of box office, the market share for 20th Century Fox are currently at 10.0% with a total gross of $772.1 after making 10 movies, this shows us that 20th Century Fox is a very successful company.Operating Models
While I was doing more research into 21st Century Fox I came to understand that the way 21st Century Fox uses its subsidiaries in terms of an operating model is by vertical integration, this means 21st Century Fox as a conglomerate company have full control of the production, distribution and exchange of their products. The reason 21st Century Fox are able to use vertical integration is due tot the fact that they have quite a lot of subsidiaries that can help them in terms of producing and promoting their product. I compared 21st Century Fox with Warp to get a better understanding on how similar and different these two companies are from each other, what I came to understand when it make to similarities with these two companies were that they both go through the same process in terms of promoting their product by some stages of vertical integration although the main difference is that due to the fact that Warp is an independent company it doesn't have the subsidiaries required to complete the process of vertical integration. This means Warp have to go down the pathway of horizontal integration, meaning they have to collaborate with different companies in order to achieve their target goal when it comes to either the production, distribution or the exchange of their product. Due to the fact that Warp aren't as big a conglomerate as 21st Century Fox means they have to do a lot of collaborations with companies such as channel 4 and Film 4 to help promote their media products.
Products
20th Century Fox produce a large range of media products to gain more attraction from their target audience, for example if you go onto the Fox TV website you can see all the different medias they produce like: Empire, The Simpsons, Bones, Glee, Family Guy and American Idol. These mainstream shows are targeted at a mass audience that of people that enjoy some of these different types of genres, this is a grate example of how diverse the media products of 20th Century Fox are to the general public.
20th Century Fox also specialise in other media types, to reach out to other people with different preferences when it comes to home entertainment, the best example of this media product is Fox News. The primary focus of Fox News is to read the news to the Fox customers, but there are different multi medias attached to Fox News that give viewers other information other than the news that benefit for entertainment purposes, the biggest examples of this on the Fox News website would be: Video, Politics, U.S., Opinion, Tech, Science and Sports. As you can see Fox News are trying to reach a wider range of topics for their target audience by selecting topics they might be interested in.
21st Century fox also have a subsidiary called ‘Fox Business’, This media product allows users to manage the ‘Fox’ stock market. The ‘Fox Business’ website allows users to select a range of different media tabs when searching the website such as: Markets, Industries, Economy & Policy, Investing, Personal Finance and Business Leaders. The target audience for this website are preferably people with businesses that that are interested in purchasing stock or to sort out their personal finance. By the look of the ‘Fox Business’ website I believe that this catered for a very specific group of people compared to the ‘Fox News’ website with is designed for a mass audience.
Market Position
Market Position
20th Century Fox is also a successful company due to the fact that they have they right amount of recognition to hire A list actors such as Leonardo De Caprio, Cara Delevingne, Terrence Howard and Taraji Henson. this shows the success of the company because these actors are classed as very expensive to hire for movies, by showing the general public that they're able to afford these actors therefore broadcasting the success of the company.
Also we understand that 20th Century Fox is a successful company due to the fact that they contain several subsidiaries that are part of their company, this shows the success of the company because it helps branch out their products to a wider target audience therefore getting more attention and increasing the publicity of the company. By increasing the publicity of the company you're increasing the publicity of the products the company sells, therefore you're creating more sales which generate more income which helps increase the success rate of the company.
20th Century Fox as a company in relation to other companies that produce the same media products are considered a much better company, for example if you look at Warp Films compared to 20th Century Fox you can see that 20th Century Fox has had a lot more box office hits in comparison to Warp Films, this is due to the fact that 20th Century Fox have a lot of the required equipment needed in order to produce an extremely successful box office film. Also as a company 20th Century Fox have a lot of subsidiaries that specialise in different areas of media compared to Warp who usually collaborate with different Networks and companies that help promote their products to the general public.
As the biggest conglomerate company in the world 21st Century is quite an international successful company. This would also mean that the subsidiaries linked to this conglomerate would have gained some recognition on an international scale. If you look at 20th Century Fox you see that this subsidiary has international success due to it being one of the worlds most popular movie developing companies going, due to 20th Century Fox being such a popular movie development company indicates to us that they're a extremely successful company.
Competitors
When I comes to having a huge conglomerate company like 20th Century Fox you will encounter some competitors along the way that specialise in the same type of media. Looking at the competitors of 20th Century Fox I can see that Disney are the main rivals of 20th Century Fox, this is due to the fact that they both produce film products for a wide range audience which makes them one of the biggest competitors in the world for film next to 20th Century Fox. Although Disney are considered 20th Century Fox's biggest competitor you can see that recently the marketing position of Disney has dropped quite a lot this year.
Disney mainly specialise in the film media industry, which they share in common with 20th Century Fox
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