World’s second-largest media conglomerate (behind The Walt Disney Company)as 2008

The News Corp created by Rupert Murdoch  Started in 1979, in Australia Started to expand globally in UK and US since

1970s Started to become vertically integrated since

1984 and focused more on US market Became the pioneer for satellite broadcasting Started to expand the business in Asia early of

1993. Nowadays, The News Corp have strong business

in US, UK and Australia.

Market Share

Mark

et

Gro

wth

High revenue (diversification on entertainment business)

Strong supply chain Large market share Ability of the company to create

innovation and development of new product by acquisition strategy

Leader's personality (know his business well / ambitious / aggressive) in support with talented staff.

Not focus High debts – Risky strategy /

expansion. Autocratic type of leader (Rupert

Murdoch), doesn't want to hear any suggestion from his staff - Investment loss in Germany in 2002.

Much dependence on Rupert Murdoch’s Leadership.

Technological development Continuous global market expansion social life style – More demand on the

product / service which is related to entertainment, education, and news

When the economy getting better like nowadays, it will lead to an increase in demand since customers are more willing to spend more money.

Changing of law/rules - changing of political situation, tax increase.

Fierce rivalry - Disney, Warner Brother.  Exchange rate fluctuations. Substitutes.

High debts Huge competitor in many segment of

markets. Ageing leader – Rupert Murdoch is 79

years old.

Horizontal Integration 1.) acquisition method strategy:

economic of scaleeconomic of scopeincrease the market power to compete.

Vertical IntegrationSupply chainUnique resourcesIncrease entry barrier to potential

competitor

How to achieve?