Sony operates in many countries and subsidiaries including electronics, video games, music, films, and financial services. The document discusses how companies can synergize or work together to promote each other's products. It provides the examples of One Direction partnering with Pepsi in an advertisement to promote both the band and Drew Brees. Horizontal integration is when a company promotes an artist through its other subsidiaries, like Katy B promoting Sony headphones while also promoting her music to female audiences.
2. What is a Synergy?
A synergy can be seen as two different companies who
work together in order to help one another promote a
particular product.
3. Introduction
Many of today’s large businesses are seen as conglomerates,
meaning that they operate in a number of countries around the world.
Take Sony for example. Originally founded in Japan, yet they operate
in majority of countries around the world selling mainly 5 different
subsidiaries:
- Electronics: Phones, Cameras, Headphones & TV’s
- Video Games: PS4 & Gaming production studios
- Music Production: Sony Music Label
- Film: Sony Pictures Entertainment
- Financial Services: Sony Life Insurance (Japan & Philippines)
4. Artists who have Synergized
One Direction have synergized with several other companies to promote numerous songs of
theirs.
One example is their Pepsi advert with Drew Brees. For One Direction their main target
audience would be their fans, seeing as they are a British band, this advert in America would
be a big hit as girls between the ages of 13 – 15 in America seem to be extremely interested
in the band.
As for Drew Brees, fan of the NFL would be interested due to the fact that he’s a huge figure
for the New Orleans Saints franchise.
https://www.youtube.com/watch?v=o0Fdn8hSrEM&safe=active
5. What is a Horizontal Integration?
Horizontal integration is the merger where a company will cross-promote an
artist through its other subsidiaries.
An example of this strategy is British artist Katy B promoting a set of Sony
headphones, but at the same time promoting herself. Her main target
audience would be females between the age of 16 – 19 as majority of her
songs are based on love, to which girls of that age find interesting.
Furthermore, Taylor Swift has also participated in the horizontal integration
method to help promote her music. Taylor appeared in an advert promoting a
Sony camera, whilst she released her single ‘Shake it Off. Not only did this
boost sales for the camera, but her single reached number 1 in a number of
countries around the world.
