Key Terms cquisition meme nt capability Hostile takeover (p. 239) (p. 238) Horiz
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Key Terms cquisition meme nt capability Hostile takeover (p. 239) (p. 238) Horizontal integration (p. 239) Relational view of competitive p 251) Joint venture (p. 250) Learning races (p. 247) Managerial hubris (p. 243) Merger (p. 238) Non-equity alliance (p. 248) advantage (p 244) Small-world phenomenon (p. 257) Strategic alliance (p. 244) Strategic network (p. 254) Structural hole (p. 256) Tacit knowledge (p. 250) orate venture capital CVC) (p. 250) Degree centrality (p. 255) Equity alliance (p. 250 Explicit knowledge (p 248) Discussion Questions 1. Horizontal integration has benefits to the firms 2. The chapter identifies three governing mecha- involved. Consider the consolidation in the event- promotion business when Live Nation bought Ticketmaster in 2010. List some specific advan- tages of this acquisition for Live Nation. Do you see any downside to the merger? nisms for strategic alliances (non-equity, equity and joint venture). Provide the benefits for each of these mechanisms.Explanation / Answer
Horizontal integration has the benefits to the firm involved. In consideration to the integration of the live Nation and the Ticketmaster in 2010. It was the merger for the event promotion. They both were the major players in the music production. We can say it was the horizontal merger as they both are at the same level in the music industry. The advantages of the merger for the live Nation are as follows:
1. They have the fewer competition in the market.
2. The cost to operate the business would be less.
3. Risks associated in dealing with the music business would be minimizing.
4. The cost of capital to run the business would be increased.
5. The more numbers of ideas and options to promote the business enhancement happen.
The Disadvantage I see from this company merger are:
1. Competition makes the business active and growing. As the two same level pyares in the market got merge then the passion to run the business would slow down.
2. Risk is less than definitely the rewards would be low.
3. There would be conflict in the supply chain of the business their supply chain was on the different levels.
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