Detailed Outline of Chapter 4

The Transnational Media Corporation And The Economics of Global Competition


1. The Transnational Media Corporation

- The Strategic decision-making and the allocation of resources
- The principal commodity: information and entertainment
-The informational and ideological environment and the free market
- The TNMC and the home market- The business strategies and corporate culture companies

2. The Purpose of A Global Media Strategy

- the gradual evolution versus a deliberate choice

3. The Globalization of Markets

a. The Rules of Free Market Trade

- Free market capitalism
- Low rate of inflation
- Free trade propositionsb. Foreign Direct Investment- FDI ownership
- Proprietary And Physical Assets
- Foreign Market Penetration
- Production And Distribution Efficiencies
- Overcoming Regulatory Barriers To Entry
- Empire Buildingc. The Risks Associated With FDI
- The laws and regulations
- Political instability
- Changes in labor conditions and wage requirements- FDI

4. Transnational Media Ownership
a. Mergers, Acquisitions, and Strategic Alliancesb. When Mergers And Acquisitions Fail
- The Lack of A Compelling Strategic Rationale
- Failure To Perform Due Diligence
- Post-Merger Planning And Integration Failures
- Financing And The Problem Of Excessive Debt

5. Media And Global Finance
a. The Role Of Global Capital Markets
- Wider range of investment opportunities than in domestic capital markets→ increase the supply of funds for borrowing and decreases the cost of capital.

b. Capital Market Loans
- Equity loan is made when a corporation sells stock to investors.
- Debt financing
- Short-term loans and debt suffocates

6. Business And Planning Strategies

- Strategic planning
- Environmental scanning
- Triggering event
a. Understanding Core Competency Specialized production process, brand recognition, or ownership of talent that enables it to achieve higher revenues and market dominance relative to its competitors.
b. Vertical Integration (And Cross Media Ownership)
c. Broadband Communication is used to describe the ability to distribute multichannel information and entertainment

7. Transnational Media and The Marketplace Of Ideas

a. Transnational Media And Economic Consolidation

- TNMCs looking for ways to increase market share and promote greater internal efficiencies- Barriers to entry for new competitors
- Two ways to examine the problem of media concentration: single-industry concentration and cross media ownershipb. The Deregulation Paradox
- Deregulation is supposed to foster competition and thereby open markets to new service providersc. The Marketplace of Ideas
-Media corporations exercise disproportionate effect over the market place of ideas
- Corporate size is presumed to limit the diversity

b. Global Competition And The Diffusion Of Authority

- “Diffusion of authority” situation, where neither company nor person is fully aware of or takes responsibility for the actions of senior management
- It is a business mission that requires a greater degree of responsibility, given the media’s unique power to inform, persuade, and entertaine. TNMCs and Nation-States
- The goals of profitability and political sovereignty
- The TNMC have a shared responsibility to create a system of globalization that is both desirable and sustainable