Question

ANALYSIS ON COMPANY (Comcast)

COMCAST Vertical Integration:

Vertical Value Chain for Target Market?

Degree of Vertical Integration?

Answer 1

Analysis on Company (Comcast)

It is one of the largest operating company in broadcasting and cable television sector which provides the cable and broadcasting services to commercial and residential people.

Comcast Vertical Integration:

Vertical integration: Normally a product is manufactured by one Company and another company supply or distribute the same to end users. Which means here the supply chain activity is owned by the Company.

Example – A Manufacture of car parts, supply this parts to other company who deals in Car manufacturing and thereafter another company sale it.

Vertical integration would be the case when a company to expand its business, do all or two or more stages of processing it like here car manufacturing and distributing done by same company.

This saves the time, efforts and cost of the company in terms of transport, commission, taxes, etc.

Comcast announcement to acquire NBC Universal is an example of Vertical Integration. Now it holds a largest market share in this activity.

Vertical Value Chain for Target Market

Value chain is the process which evaluates the value of a product since from its production to distribution of the same to consumers.

It includes everything that comes in the whole process. By Vertical value chain, they mean your supply chain that is your way of distributing the services or product to end users.

It involves taking care of cost of the company, quality and best advantages that can be offered to customers and increasing profit.

Degree of Vertical Integration?

Comcast has high level of vertical integration as it has got the power and control of cable system and programmes.

Government has found out the ways to prevent the anti competition that may be caused by the Comcast by the reason of getting such powers in cable system.

Small cable operators were affected due to this vertical integration control and so the risk of harm to consumer and fair competition.