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황상재 한양대학교 사회과학대학 2002 社會科學論叢 Vol.21 No.-
Business diversification is one of strategies for terrestrial broadcasting companies, which have dominated the broadcasting industry, to cope with the drop of market share and to reinforce the competitiveness. The present study examined the current state of business diversification of terrestrial broadcasting companies (KBS, MBC and SBS) in Korea, and described problems in the strategy and their solutions. According to the result of investigating the state of business diversification promoted actively by terrestrial broadcasting companies, which were in harsh competition for market share with new medias such as cables and satellites in the changing environment of the broadcasting industry, to restore their dominant position in the market, it appeared that SBS had 12 subsidiary companies, MBC did 10 and KBS did 6. When the strategy and state of business diversification of the three broadcasters were analyzed according to the type of ownership, the following results were produced. First, based on the value chain of the broadcasting industry, the subsidiary companies owned by each broadcaster can be grouped into those for vertical diversification, those for horizontal diversification, and those for conglomeration. Each subsidiary company was classified according to its business areas presented by the company. According to the result, KBS appeared to have 2 subsidiary companies for vertical diversification, 2 for horizontal diversification and 2 for conglomeration. As for MBC, 3 were classified as those for vertical diversification, 5 for horizontal diversification and 2 for conglomeration. SBS had 3 for vertical diversification, 5 for horizontal diversification and 4, which were not directly related to broadcast production, for conglomeration. It was considered inappropriate to regard the strategy of diversification of terrestrial broadcasting companies in Korea as a part of rational management strategy based on sufficient investigation of the market. As shown in the case of Sky KBS, which was exposed to many problems and on the verge of collapse as soon as it was launched due to excessive investment of capital and manpower, the degree of irrationality appeared to be higher in public-financed broadcasting companies. Thus the following problems and their solutions were proposed. First, the strategy for promoting diversification and the promotion system are imperfect. Broadcasting companies do not have a strategy or have only a superficial strategy for promoting business diversification. This fact is supported by lack of organization and manpower in charge of business diversification in the broadcasting companies. Second, there are few tactics for enhancing synergy. In managing subsidiary companies, the parent companies emphasize transferring responsibility and autonomous operation, but there are insufficient sharing of marketing activities and strategic resources between the parent and subsidiary companies. Third, subsidiary companies also deteriorate their own, competitiveness by excessively relying on the parent companies rather than conducting responsible business. Another factor detrimental to the competitiveness of subsidiary companies is that the management of subsidiary companies is filled up by those from the parent companies who do not have a business mind.