Strategic Implications of Horizontal and Vertical Integration in the Chinese Entertainment Industry-Focusing on the Motion Picture Industry

• Main Authors: David Shuchuan Lee, 李恕權
• Other Authors: 巫和懋
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/23906642115702315767

碩士 === 國立臺灣大學 === 國際企業學研究所 === 93 === Strategic Implications of Horizontal and Vertical Integration in the Chinese Entertainment Industry Focusing on the Motion Picture Industry Graduate student: David Shuchuan Lee　　Advisor: Wu, Ho Mou Abstract Unlike most industries, the entertainment industry has many aspects which are heavily involved with art and creativity. Whereas other industries mostly compete in their product’s functionality, pricing or services; which are usually more easily measurable. In addition to these unique industry characteristics, the entertainment “market” itself is also highly seasonal, culturally oriented and sometimes non-profit-motivated. Thus, the industry often becomes more volatile and risky than others, but, it also offers greater profit potential and returns for successful projects. The center of this study is how such an industry can best grow and strengthen its corporate stability by means of mergers and acquisitions, with special emphasis on the vertical integration strategy. The US motion picture industry has been used as the primary case study. This paper offers in depth statistical analysis of entertainment industry integration strategy, with pre-integration and post-integration performance analysis; as well as cross analyzing and comparing with Chinese entertainment related cases. From the study result, this paper references the Key Success Factors of other Chinese industries, and concludes by offering four major discoveries in the integrating strategy for the entertainment industry: 1.Choose companies with a lower “relationship transaction” characteristics as a primary integrating candidate. 2.Per “market share” in a niche market should be the first consideration of selecting a target company. 3.When selecting a target company; “heavy seasonal” and “relationship transaction” characteristics of the two companies shall posses highly complementing effects. 4. The most efficient manner in which to globalize the Chinese entertainment industry is to purchase or join ventures with a US company with leading technologies and a global distribution. Then, building Taiwan as an OEM for the movie industry. Once the global distribution and technologies are in place, OEM will grow with its own branding and manifest itself to a global success.