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Diversification Strategy of Global Media Conglomerates: A Comment

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  • Michael Stephan
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    Abstract

    Chan-Olmsted and Chang's (2003) framework for the analysis of product-diversification strategies of media conglomerates is critiqued from a dynamic resource-based perspective. In the spirit of spurring intellectual debate, this article proposes a revised framework that incorporates newer findings about the benefits of related product-diversification strategies from the strategic management literature. A differentiated view of the "media content" notion is presented that distinguishes between assets, skills, and capabilities and competencies. From this differentiated perspective, I argue that there are 2 types of scope effects: traditional economies of scope that grant the media firm a short-term competitive advantage over rivals and dynamic scope effects that contribute to a sustainable competitive advantage.

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    File URL: http://www.tandfonline.com/doi/abs/10.1207/s15327736me1802_1
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Journal of Media Economics.

    Volume (Year): 18 (2005)
    Issue (Month): 2 ()
    Pages: 85-103

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    Handle: RePEc:taf:jmedec:v:18:y:2005:i:2:p:85-103

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