Ownership and control: blog task
1) Why did Facebook buy Instagram for $1bn in 2012? Because facebook could make lots of products at the same time and also everyone said that facebook was the best place in Silicon Valley to drive massive growth. 2) What are the benefits for media companies of vertical integration? The benefits are that companies by allowing them to take over the process ,reduce costs and make efficiencies better. Most companies focus on one part of the supply chain. For example, a manufacturer might focus only on producing goods. 3) What are the benefits for media companies of horizontal integration? The benefits are that they have lower cost and increased differentiation, t he combined company can offer more product or service features.Also Increased market power,reduced competition and acces to new markets. 4) What is a subsidiary? A subsidiary is owned or controlled by another company,which is called the holding company.the subsidiary can be a company,corporation,or in