D1: Evaluate the Evolution of Historically Large Corporations to Meet the Challenges of a Converging Media Market

In this report, I will be explaining how large companies have expanded to cover different media industries. I will also show my understanding by showing how this effects my media product.

First of all, I will clear up a few key media terms. Conglomerate companies are large organisations that own smaller companies (we call these subsidiaries). Horizontal integration means that a company may choose to market their products across different media subsidiaries. Vertical integration is when a company controls the production, distrubution and exchange of a media product.  Now that I have explained these terms, I will use them in this report

. Disney is a great example of a company expanding to meet the challenges of a converging media market. Because of globalisation (we can produce, consume and distribute products on a global scale thanks to the internet) and the evolution of technology Disney have expanded their reach across different media markets. Originally, Disney was an animation studio founded in 1923. They released their first animmated film Snow White and the Seven Dwarfs in 1937. 

 

 

 

Globalisation and new technologies has allowed compnies such as Disney to gain subsidiaries in different media markets. Above you can see just a few companies that Disney now own. Marvel and Pixar are some major acquisitions.

Disney are now a major company with influences in several markets in the media industry. Now, Disney also created 3D animated movies such as Wreck It Ralph, Frozen etc. They have their own movie/TV show streaming platform called Disney +. This subscription based service allows you to access all the different franchise movies/TV shows Disney owns (The Simpsons, Marvel movies, Pixar, Star Wars) using this one service. Disney also produced games, Disney Dreamlight Valley is a more recent game released. Furthermore, Disney have their own Disneyland theme parks across the world (Paris, Florida...) so fans can meet their favourite characters and enjoy the theme park rides and food available.

 

 Advantages and Disadvantages of Conglomerate Companies

 Conglomerate companies have more control of the media. Disney has a slice of different media sectors as they have products in them. This is great since companies can then create lots of different revenue streams and more revenue too. This allows Disney to create whatever media products they want to produce. More revenue means more control over creative decisions. Furthermore, this allows companies to build a positive reputation for themselves. If a person likes one of their movies, they may decide to play a game based on the movie etc. This also puts the company ahead of its rivals. In terms of horizontal integration, companies like disney can always market their other products across different media platforms. This is synergy since they can maximise the success of a product by marketing this way. They will also find it easier for vertical integration since hey may own own companies to help them produce, distribute and exchange the product. Disney create their own movies and TV shows. Some of these may be Disney + exclusives and you can access nearly all disney movies/TV shows through their Diney + subscription service.

 

 On the otherhand, this may create more costs for the company. Acquiring media properties will cost a lot. For example, Disney bought Marvel Studios for $4 billion US dollars. Furthermore, you will need to pay more employees. The conglomerate company must have a good managment team to help them control all of these companies. Also, if the company has a large reputation and they do something contraversial, this can lead to bad publicity and a loss in sales.

 

 

How My Media Product Will Stay Relevant

 For my new revolutionary media product, I decided I wanted to design a robot. Here is my proposal:

My company (Ro-Boot Technologies) is going to create my interactive media product. The new HELP-R 5000 robots are going to revolutionise how we run the world and how we go about our daily lives. These robots are going to be used primarily in the public service industry. My robot is going to help not only businesses, but also those struggling by walking around public spaces. My robot will have different modes you can select so they are suited to the business’s needs. You can select the following modes (you can choose one or several):

 

•  Clean the environment and pick up litter.
• Help signpost the homelessness to shelters, those struggling with mental health and domestic abuse to services and offer them essential information.
• Patrol the streets and help the police combat crime by live video recording a crime and sending the GPS location to the police. They can also ring emergency services such as an ambulance if someone is severely injured.
• Can take orders at a restaurant.
• Can help stock shelves or rails in retail and perform stock takes as well as retrieve items from the back that customers would want to try. Can also transfer stock to different areas or tidy.
• Will have a screen so we can use the internet (with restrictions).
• Anti-hack technology.
• Can direct us using its in built GPS to wherever we need to go if we get lost.
• Can talk several languages and perform sign language.

 

My robot will be able to read human emotions using the AI and have sensible conversations with us. Along side this robot, I think it would be a great idea to create a mobile app. This app will allow the owners of the robot to change several settings. For example, they can change what mode they would like the robot to be on. You could also power off the robot using your phone. From the app, you may be able to ask for maintenance services for our robots.

My HELP-R 5000 robots will be eco-friendly. They will be created either from recycled or biodegradable materials. I will power the HELP-R 50000 robots using biomass since this is the main renewable source or energy and my robots can use this.

 

Market

I believe my robot fills a gap in the robotics market. There are many robots out there that use AI. However, I realised that all these robots only have one specific purpose. For example, Sophia is a social robot who was created for the sole purpose of having conversations with us. The Atlas robots are made specifically for tasks that require running or parkour. My HELP-R 5000 robots can do several tasks, they are not specifically targeted to do one thing. I believe this is the USP of my robots since businesses may need a robot to perform more than just one type of task. This helps them save money since they don’t have to buy robots that only fit one purpose, and this helps me since the robots will stand out from the market. Furthermore, my robots will contain more advanced AI as well as lots of converging technologies so this will help with their many purposes.

 

 

 

 

 Realistically, I will loose money before making a profit in the long run with my HELP-R 5000 robots. I do not want my product to suffer the same fate as the Amazon Echo Dot. Amazon made their Echo Dot affordable so everyone could afford one in their homes. They believed that the smart speaker would lead to an increase in general Amazon sales since the public would order items through the robot. This however did not work out. I think that most people would like to see what they are buying first and research the product. They also want to find a shope that sells the item for the best value of money. In response to this, I will slighly reduce the price of my robot to help draw the attention of my audiences. Once the customer has the product, they have to buy the different modes. This works much better than Amazon's situation since the audience will need these modes depending on what they require from the robot. If a company requires several modes they will need to purchase them all. 

 

 I believe my robot is targeted towards mainly businesses at the moment. However, it is possible for these robots to be used in our homes one day. My HELP-R 5000 robots have an app that you can interact with. This app would be accessible through the Google Play and Apple app stores. The app itself is a way to market the robot. The app may include a daily mental health checker and other useful tools integrated into the app. My intention is that my audience will enjoy the features of the app and they are persuaded to upgrade their experience by purchasing my robot.

Integration and Marketing

Distribution refers to how I will get my product to the consumer. I have decided to do direct distribution. This means that my audience will get their robots delivered to them to their establishment (vertical integration) and my company Ro-Boot Technologies will produce the robots. I decided to choose this method because my target audience is mainly businesses in the public sector and the government. These businesses could range from retail to restaurants to charities.

 

Digitally, I could create my own website for the HELP-R 5000 robots. This website would include what my company (Ro-Boot Technologies) does. What the HELP-R 5000 robot is with a video to showcase what it can do. I will also add a contact page so they can ask any questions. I can add an online shop to this website so businesses can buy their HELP-R 5000 robots. They will need to verify their working ID to make sure they are a legit company. One day in the future, my website can act like Amazon for my robots when I decide to let the public have the robots too.

Another way I can promote and distribute my product is to hold conventions. These can be either online or in the real world. Conventions give businesses the chance to see how the robot works and gain contacts with us if they are interested.

 

Social media is a great way to market my product. I could include a link to the website while promoting it on socials such as Instagram etc.

 

 

 To conclude, I believe my media product will help businesses to converge. My HELP-R 5000 robots will allow businesses to focus on more important matters. Robotics is advancing so much that they are helping all kinds of businesses with their work. In the media industry, AI can now create graphics and help edit videos. My robot can help companies since they will not have to hire as many temporary workers etc if they have my robots.

 

 

 

 

 Sources:

 

 The Guardian. (2022). Alexa, how did Amazon’s wrong call on voice assistants tee up a $10bn loss? | John Naughton. [online] Available at: https://www.theguardian.com/commentisfree/2022/nov/26/alexa-how-did-amazons-voice-assistant-rack-up-a-10bn-loss.

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