Understanding Vertical Integration Strategies

This assignment delves into the concept of vertical integration within businesses. It requires a thorough understanding of how this strategy works, its potential benefits and drawbacks, and real-world examples from different sectors like sports broadcasting, natural gas, and real estate. Students must analyze case studies and research papers to demonstrate their comprehension of vertical integration's complexities and implications.

SPORTS
BROADCASTING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
A. Description on the graphical representation of the sports and its impact on the media
organisation as per the past and present scenario...................................................................1
B. Explanation of the vertical integration and its strategy by a sport organisation or media
organisation............................................................................................................................3
TASK 2............................................................................................................................................4
A. Calculation of the broadcaster pays for the hour of the sport content...............................4
TASK 3............................................................................................................................................5
A. Describe broadcasting and various tools and technique or the impact of this..................5
B. Define the importance of tool of broadcasting in the regards to the engagement of th fans
and consumer..........................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
The sport broadcasting is the activity which is organised through various media
publishers. Australia earns significant income through broadcast right. The sport activity is
broadcast by the Becker entertainment its an Australian publicly listed entertainment company.
This kind of activities help us to keep healthy. The term broadcasting is given which is very
useful in term to gathering the whole worldwide information. It is owned by the primer television
limited. Sports are not merely the source of entertainment The sport programme is rapidly
increasing over the period (Mohammed, 2017). In this report there is impact of media
advertisement of sport on over the context relate to the broadcasting of media activity. This fact is
true to said that education as well as sports both are essential for the mind and soul but the term
“Education Enlighten the mind and soul. In addition to this thing it is also inclusive of the effect
of they sport activity on the present as well as past scenario.
TASK 1
A. Description on the graphical representation of the sports and its impact on the media
organisation as per the past and present scenario.
Graphical representation of the sports- According to the graphical representation of the
sport of Australia it is rapidly increasing with the period. The Australia plays essential role in the
terms with many sporting event televised or broadcast of radio. There are various channels which
is publishing the sport activity and the number is increasing day by day. As per the graphical
structure the sport activity is tendentiously increasing people tends to get interest in the gaming
zone activity. The youth of Australia largely prefers sport as their career option. For the
promoting and regulating such activity media organisation plays essential role. The Australia has
completed various sport's event including the Olympics and Paralympics. This country has
contributed largely in the sports zone area. It largely participates in the international events. The
major sport events happen in Melbourne city of the Australia this place is also considered as
“sporting capital”. For making sports activity more popular the television model plays crucial role
(Kartal and Ören, 2017). The main object is to find out the media effect on the sports as well as
team and individuals.

The media organisation named Becker Entertainment plays essential role in the terms of the
promotion and regulation of the sports such as-
Radio and television- It plays the essential role in the terms of the show matches and
competitions. There are also highlight about the match's activity. The various kinds of the
documentaries and quiz show about the sports are available so more of the people get attrct
towards it. It acts as great source in the terms of having information from the corner of the world.
Cable and satellite TV – These sports activity are conducted on the pay- per basis. It is very
helpful in the terms of making the sport's activity more famous.
Ceefex and Teleext- It is the fastest mode of the communication. It helps as having up to date
information about the sport events of the world.
Internet- Internet has become crucial part of everyone's life today. With the help of this any
information about the sports team/athletes/matches are can be found on the media source.
Website can only operated if the internet facility are functioning smoothly.
Illustration 1: Graphical representation
(source:Pedersen, 2017)

Newspaper and magazines- Newspaper is also an important source in the result as print
prediction and result, as well as articles and current update about the athlete and clubs.
The technology is playing essential role in the terms of coverage of sport in the media, but
it also has some features like photo finishes, instant replays and split times etc. it is important
aspect with the terms of having worldwide information (Miyamoto, 2017).
The positive impact of media coverage of sport are as- This term is inclusive of the following
elements like - Money- The media company pay some amount to show their programme on the
television. With the help of this the generation of economy tends to increase on large
scale. Also, the kinds of sports shown on the TV generate more sponsorship. Education- it helps in having more knowledge about the rules and regulation of the sport's
activity (Pedersen, 2017). People can learn it from watching TV. Role models- By watching sport shows on the television it helps the people to know about
them more. Inspiration- It brings inspiration to the people who are interested in this kind of activities.
This kind of things encourage the people to get involves and explore their knowledge and
skill related to this field. Coaching aid- It helps the Becker entertainment produce many aid film related to the
sport activity. It helps the interested people to watch out the related technique and work as
improving their performance.
The negative impacts of media coverage of sports are as- This thing is also inclusive of the bad
impacts are as-
Shortage of attendance- the people tends to purchase fewer tickets because they prefer to see the
shows on television. The media have covered the live show market. The sale of tickets are often
drop.
Overload- on television there are number of media broadcasting due to this there is lot of series of
sport activity. So people cannot relay on one particular show at a time.
Attention- The media people tends to show the personal details about their private life.
Demands- The backer entertainment are putting wide kind of pressure on the organisers of the
sporting competitions to make the viewing experience better for TV audience (Billings, A and
et.al.,2017).

B. Explanation of the vertical integration and its strategy by a sport organisation or media
organisation.
The term vertical integration is very useful in the knowing of the supply chain of the
company. It is the kind of strategy which used to enlarged the firm by gaining ownership of its
distributor of the firm. Many organisations are using vertical integration with the aim of reducing
cost and increase in the efficiency. They are using this strategy in order to satisfy the common
need of the consumer. The object is to maintain the effectiveness as well as efficiency of the firm.
It is very helpful in increased competitiveness of the firm in the market. There are two kinds or
vertical integration of the firm are as-
Forward integration- It is a kind of integration in which Becker entertainment media
organisation take initiative efforts in order to gain huge range of ownership of the distributors.
Balanced integration.
Backward integration- In this term firm is using both the forward and backward strategy of the
market or in this media organisation can also use it as balanced integration strategy.
The media organisation name 'Becker entrainment' are using vertical integration strategy with the
aim of having certain benefit in the sport activity are as-
1. It helps in gaining advantage to the firm.
2. It is very useful in order to have wide range of market share.
3. It improves coordination among the media advertisement channels and increased supply
chain.
4. It also works decreasing the cost of the function.
5. It is very essential in the term of putting greater control.
The process of vertical integration strategy in the context of the media organisation- Many
organisations uses this strategy in the terms of decreasing the cost by eliminating the price
markup associated with the buying the product from the third party. For example- it is not only
the coffee house they also grow their coffee beans. The Starbucks packets are also can be found
in the market and uses to sold in the grocery store (Kartal and Ören2017 ). With the help of this
given example it can be found that there is a strategy of increasing the sale rate in the market in
order to maximise the profits. The media are also following this approach in order to maximise
the profits of the firm. They also have various alternatives on which basis firm can have more
opportunities to grow he sale rate. It is very helpful in having control over the one company at a

point of time. With the help of this organisation can have more than on distribution channel so it
can be said that organisations named as 'Becker entertainment' can also show some other kind of
sport activity through different distribution channel. The main objective of every organisation is
to cutting he cost of production and to earn maximum amount of profit.
The whole system work as firstly manufactures makes the product and then he sails to
retailer later on they used to sell it the end customer. When he sells to retailers it is known as the
vertical integration but when this tend to sold to the wholesaler or retailer then this is known as
the backward vertical integration (Lupien, 2017.). This both term is very useful in the matters like
gaining competitive advantage, cost control and making differentiation etc.
TASK 2
A. Calculation of the broadcaster pays for the hour of the sport content.
The calculation should be on the following basis-
value of right deal
length of right deal
number of games allocated to broadcaster
and length of the average game
solution:
Value of right deal 13,000,000
Length of rights 1
Number of games allotted 11
Length of game 90
Right deal value for each game
1181818.181
81818
Broadcaster pay for each minute
13131.31313
13131
Broadcaster pay for each hour
787878.7878
78788

From the above calculation it has been found that for the 90 minutes this match was in the
process and there were 11 games in a day. In every hour there were 10 minutes of gape on which
advertisement activities take place.
Broadcast timeline- As per the analysis of the overall broadcast elements, it can be said that
overall broadcasting was of 107 minutes. In addition, this, running time period of the AFL match
was 90 minutes that means the rest 17 minutes were spent on the other factors like interval.
Moreover, the advertisements were also broadcaster during the interval of match. It also indicates
number of factors is being considered at the time of broadcasting of match. During the match the
appropriate commentary was presented in order to develop proper understanding about the
telecast (Nölleke, Grimmer and Horky, 2017). Sport content was properly presented for
sustainable development. The match was between Western Bulldogs and Brisbane Lions. Number
of AFL lovers were present in the stadium and cheering their supportive teams. Proper coverage
of match and other factors is being considered in the broadcast.
Factors Time Period
Match 90 minutes
Match Summary 2 minutes
Advertisement 15 minutes
Commercial model- Commercial modelling is a niche that spans across a wide area.
Advertisements in television are fall under the commercial umbrella. In addition to this, it can be
said that 15 minutes advertisement has been displayed during the broadcast. In this, 3 to 4
advertisements are being broadcasted in order to create awareness about the FMCG and
fashionable products among viewers. It indicates that commercial aspects are also properly
referred in order to have consisted development of profit during the AFL match. Along with this,
auto-mobile advertisement has also been presented in the broadcast of AFL. 4 minutes auto
mobile advertisement was to create awareness about features and special attractions that are
covered under car (Billings and et.al., 2017). Toyota was the advertiser for the same. Moreover,
advertisement of Coca-Cola was presented in the interval period which has created better
outcome in regard to profit from commercial values. It also indicates that commercial model has
been considered effectively from the managers or authorities of broadcast team.

Sponsors and evaluation- In order to have effective broadcasting of AFL the consideration of
sponsors was essential because it allows to have effective development of objectives. It has been
noticed that there are number of broadcaster’s sponsor of AFL. Classification of sponsors can be
as Port Adelaide Renault, Energy Australia, Essendon Kia, Sydney QBE, etc.
Team Sponsor Sponsorship Million
Dollar
Total revenue
Port Adelaide Renault,Energy
Australia
22.467 48.219
Collingwood Emirates,La Trobe
Financial, CGU,
Holden
19.326 76.819
Essen-don Kia, Fujitsu, True
Value Solar
17.69 61.258
Sydney QBE, Citibank,
Volkswagen
17.089 46.389
Geelong Ford 16.251 51.356
Hawthorn Tasmania, iiNet, Bupa 15.093 67.663
Other than this, there are few other corporate sponsors that provides a support to the overall
broadcasting system. Classification of corporate sponsors can be as Toyota, Carlton Draught,
Coca-Cola, Wolf Blass, Tissot, Virgin Australia, etc. It has been noticed that for the AFL 2019
the budget or sponsorship of Toyota has been raised by 3 million US Dollar. Along with this the
Toyota Good for Footy raffle raised a record $574,305 to support local clubs with better facilities
and equipment. It indicates that Toyota is one of critical participant in the AFL. Moreover, on
transportation mediums the banner of Toyota is being used in order to reflect that company is
associated with the league (Pedersen, 2017). At outer of stadium company also present its
products through use of mini stores. Coca-Cola is to provide its printed logo on the kit of players.
It helps company to create awareness about the brand and attract more customers to use its
products. As same other sponsors are also focused towards different kinds of ways to have
appropriate marketing and sponsorship.

TASK 3
A. Describe broadcasting and various tools and technique or the impact of this.
Broadcasting- The term broadcast means sending information like news, TV shows,
Music or any other information through the use of radio, internet, television from the different
corners of the world (Lind, 2017). This means having each short kind of information to the
person to person. It is very useful technique in order to know the knowledge about the place,
region or country. In before time information can be sent through the using of this kind of
element like radio waves, wire or by communicative satellite etc. There are different techniques
of broadcasting are available as-
1. Telephone broadcast- it is the very first technique which is useful in gathering the
information from the corner of the world. With the time these techniques also tends to
modify. The first item of eh electronic broadcasting is begun with the advent of
Theatrophone system. It is also known as the theatre phone. It was implemented by the
clement Ader in the year 1881 in paris. It is the first source of communicating with other
via air waves.
2. Radio broadcasting- It was the second modification which came in the mode of
broadcasting purpose. It is a kind of unidirectional wireless system over the video waves
which work as to reach the wide range of the audience. It also can operate in the audio
mode (Milam, 2017). In this audio signals sent with the help of air as audio waves from
the transmitter and picked up with the using of antenna and sent to a receiver. It I also
helpful in getting connection with the radio networks to broadcast with the common radio
programmes. With the help of radio techniques the communication term can be improvise
and it can be receive in the short period.
3. Television broadcast- This is the kind of telecommunication medium used in the purpose
of sound with the moving images. This medium is like by the number of the person.
Television broadcast is the mass medium for the entertainment, education, news and for
advertising purpose (Pedersen, 2017). With the passing of the time it also works as
bringing huge kind of innovation due to this technique this method of broadcasting helps
the lot.

4. Cable radio broadcast- This method was very approachable. It is similar to cable
television system. In these channels are converted into the various channels as the
subscribers. It is very helpful in enhancing the quality of the terrestrial radio signals that
are difficult to receive in an area. It plays essential in the term of video or audible sound.
5. Direct broadcast satellite- This is the kind of the artificial satellite which helps as
broadcasting the satellite television signals from the home receptions. The signals are
received via an outdoor (Wang and Noodoe, 2017). It is the important with the aspect of
receiving information from the any corner in the world in eh fast manner. It ls helps in
decoding the any desire television programmer for viewing on a television set.
6. Webcasting- A webcasting is the source by which the use of any media presentation can b
distributed over the internet using streaming media technology to distribute the content
source to the many listeners at a specific point of time. It can be telecast on the live or on
the demand basis. It is kind of broadcaster with the using of internet approach. Without
this facility this cannot be operate.
So there are the above six techniques with the help of these there is distribution of the various
activity via any electronic mass communication medium. Generally this is very useful to give the
information to the wide range of the audience for any kind of the interest such as to inform, to
entertain or the to educate the audience. It can be said that it is very useful in the term of
gathering the whole worldwide information.
B. Define the importance of tool of broadcasting in the regards to the engagement of th fans and
consumer.
Consumer used to communicate with each other on the daily basis. The exchange of
communication are given on the two kind of basis such as word of mouth has focused on the
skills of the communication. It is the only way n which behalf people can convince buying
something. The tools of the broadcasting is very important in relation to communicate about the
small things. By speaking to the large audience with the help of the broadcasting leads people to
share the more self- presentational contact. Or on the basis of communication with the person it
leads to share the most specific information. Th communication help the people to know more
about the each other. The person who stays far the tools of broadcasting can help them to bring
close to each other (Mohammed, 2017). The ability to communicate with many people at once

with the help of the social media understanding how audience size impacts communication in he
increasing manner. The both the term broadcasting and the narrowcasting are very essential
source of communication with regard to know more and more about the person. The authors find
that broadcasting leads people to share things that make them to realise like it the better things to
shares or looks better with this there can be using of the positive language and reframe the
negative events to make them less bad. The exchange of the information help in the terms of
passing information from one place to another. It is possible only in the case of broadcasting
technique. The broadcasting activity is very essential for having information regarding to corner
of the world. No one can live without proper communication. It is very essential for the ones life.
CONCLUSION
From this project report it has been concluded that it is very useful technique in order to
transfer the information from one place to another. The sport activity are essential in the term of
having healthy mind and soul. Media organisation is playing wonderful role by contacting the
whole word with the communication sources. The various tools and techniques of broadcasting
are the main in term to get the whole worldwide information. The whole broadcasting startegy is
based on the vertical integration strategy. This report is totally based on the element of the
broadcasting sources.

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Online
The verticle integration strategy, 2017 [Online]. Available through:
<http://www.hmc.org.uk/about-hmc/projects/the-british-education-system/>. [Accessed on 1st
augest 2017].