Vertical integration and Reach PLC
Curran and Seaton
Reach PLC can also be described as a vertically aligned conglomerate, using a variety of subsidiaries to fulfill vital production, distribution and promotion functions.
Reach Printing Services, for example, offers a centralised printing facility for all its papers, rationalising production costs for all newspapers produced by the parent company, while ownership of Reach Solutions offers advertisers a comprehensive ad placement service that no single publisher alone could coordinate.
Reach PLC’s 50% stake in the Brand Events subsid also provides vital publicity for the company’s papers at a host of public events via the organisation's nationwide food and car roadshows.
A company controlled by a much larger company.
Media terminology used
A type of strategy used by producers that reduces production costs. Bulk buying, for example, allows media producers to save money on raw materials.
Ownership of subsidiaries that enables a media producer to produce, promote and distribute products. This expansion strategy allows conglomerates to control all aspects of production.