bus400

At one point in time, creating media conglomerates seemed to be the trend in the industry. In my opinion, TV networks, film studios, newspaper and magazine publishing and music labels are completely different segments of the media environment and a strategy to gain sustainable competitive advantage should be tailored to individual markets. Now, years later the trend is dividing up the conglomerates into smaller companies, with the higher growth TV and film assets staying together, separate from the lower growth businesses like newspaper publishing. With technological advances happening frequently, it seems to make some aspects of the conglomerates, like newspapers obsolete. Most of these large companies that are splitting their conglomerates up have been following the trend of spending most of their resources on the TV network and film studios. In my opinion, to gain a sustainable competitive advantage it is better to be focused on what you are good at rather than trying to be bigger and better than everyone else, “quality vs. quantity”. Therefore, separating their company into two and spending most of their resources on what they do best, TV and film, will allow them to gain a sustainable competitive advantage in the media market. In my opinion I believe that Rupert Murdoch has taken this approach of splitting his company into two because of the changes happening in the media market. Consequently the two separate companies will have different strategies of gaining a sustainable competitive advantage in their own category of media. In an always-changing environment such as the media market with new technology and innovations, a company that wants to be successful must adopt an evolving strategy. News Corp.’s proactive strategy were that prior to this division of assets, Rupert Murdoch had a plan to create a media conglomerate and actively bought smaller companies to widely diversify his assets across the media environment including companies specializing in film,