A Film Production Company Purchases a Television Network to Guarantee

question 21

Multiple Choice

 A film production company purchases a television network to guarantee its shows will be aired. This is an example of

• A) unrelated diversification.
• B) backward vertical integration.
• C) forward vertical integration.
• D) backward horizontal integration.

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Definitions:

Price Cutting Campaign

A marketing strategy involving the reduction of prices of goods or services to attract more customers or drive sales volume.

Predatory Pricing

A strategy where a company sets very low prices with the intent to drive competitors out of the market, which can sometimes lead to monopolistic practices.

Marketing Director

A senior executive responsible for directing and overseeing marketing strategies and campaigns to boost brand awareness and sales.

Smaller Competitors

Companies with a smaller market share or resources compared to the leading firms in an industry.