ntures with other firms, or through the acquisition of firms in unrelated lines of business. News Corp. continually expands its boundaries, generally within the entertainment business, and is a modern conglomerate proving that focus and diversity are not always mutually exclusive (David, 1999).One argument for diversification is that long term success requires a company to develop a portfolio of businesses that assures an adequate and stable cash flow with which to finance its activities. In this scenario, growth is pursued due to the fiscal advantages of managing large growing firms, which Henry Manne defines as a market for corporate control (Besanko p210). The control of corporations is considered a valuable asset, and Murdoch can be classified as a corporate raider motivated by financial rewards. He skilfully identifies an undervalued firm, adapts their strategy using specialised knowledge and resources, and then reaps previously unexploited profits. However, Gliek (1998) cautions that the larger a company gets, the more difficult it can be for the left hand to know what the right is doing. Strategic alliances and joint ventures.Strategic alliances are valuable to a company as they permit cooperation and coordination with another company, allowing the sharing of information and productive resources. News Corp. has been involved in both horizontal and vertical alliances, involving collaboration with other firms involved in the entertainment industry. David (1999) explains that joint ventures are becoming an increasingly popular strategy, as they allow companies to improve communications and networking, to globalise operations and to minimise risk. Although not heavily involved in joint ventures in the past, News Corp. is undertaking such initiatives more frequently, particularly with investments in the developing world and recent internet initiatives.Strategy differences between News Corp. subsidiaries.When discussing the overall str...
