Viacom Case Analysis

Strategy

Viacom employs a broad differentiation strategy, strengthening their network brands worldwide through acquisitions or internal development of popular entertainment, including new channels and successful motion pictures. Each of Viacom's numerous networks targets a specific demographic. Some examples include the following: MTV appeals to teenagers and young adults, Nickelodeon targets children and families, and BET focuses on African-American viewers. The broad differentiation strategy is consistent across filmed entertainment segment as well.

Viacom has horizontally diversified through the acquisition of various popular networks such as Comedy Central, which it acquired from AOL in 2003. Viacom is a tightly diversified in that it focuses its efforts on the media and entertainment industry while diversifying across the various fields of entertainment. This tight diversification enables them to create content synergies that can be developed into multiple products. For example, in July of 2010 Viacom acquired a Social Express, a social game developer. Viacom creates original shows through MTV networks, and then creates social games based on those shows. Tight diversification also ensures distribution of their products. Viacom utilizes its holdings in Paramount to distribute feature films to its major