Industries: ownership and control
1) Why did Facebook buy Instagram for $1bn? • He wanted to keep his company, and to keep being the Instagram visionary, just with none of the risks of independence. Facebook's network was already helping Instagram grow — and if Instagram was part of Facebook, they'd have unimaginable resources to keep growing, faster. This argument seemed to appeal to Systrom. • 2) What are the benefits for media companies of vertical integration? • Vertical integration may lead to lower transportation costs, smaller turnaround times, or simpler logistics if the entire process is managed in-house. This may also result in higher quality products as the company has direct control over the raw materials used through the manufacturing line. • 3) What are the benefits for media companies of horizontal integration? • Undergoing horizontal integration can benefit companies and typically takes place when they are competing in the same industry. The advantages include increasing marke