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Comcast Integration Strategies

Strategies of vertical integration can have a positive impact on a company’s financial success since it helps to take control over several parts of a revenue chain. In this particular case, Comcast is corporate in the entertainment industry. To achieve such an accomplishment, this enterprise has also implemented methods of integration. However, before studying the examples, it should be noted that strategies can be either backward or forward. Backward integration is aimed at acquiring sources, content, or material and can help against large suppliers whose monopoly allows them to change prices however they want. On the other hand, the strategy of forwarding vertical integration is implemented by obtaining smaller companies and structures that are engaged in distributing the finished product to consumers.

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After analyzing the activities of Comcast, it becomes clear that this corporation employs both methods to grow its business. For instance, regarding forwarding strategy, in 2008, the company purchased DailyCandy, which is a firm that distributed emails, for 125 million dollars. Plaxo is an additional example, where Comcast bought an organization that provided online services to customers. Another instance is the 2007 acquisition of Fandango Media, which is an organization that sells movie tickets, offers television, and media information.

Nevertheless, there is also a notable example of a backward strategy that was used by Comcast. In 2011 the corporation acquired NBC Universal, the company that was engaged in creating video programming. This service was provided to Comcast, and after that, the enterprise distributed it to customers. It allowed the firm to stream Rio Olympics in 2016, which brought major benefits to Comcast. For this reason, it can be assumed that even though the corporation uses both integration strategies, the backward method became the most profitable.

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