این فصل را باذکر تمام تیترهایش (تاکید میکنم تمام تیترها) به انگلیسی ساده و روان خلاصه کن   Value Creation Systems of Media Enterprises

	








In the previous chapters, we have primarily focused on external conditions that inuence the activities of media enterprises. In this chapter, we will focus on the value creation system of media enterprises. The value creation system comprises all factors that are crucial for the competitiveness of a media enterprise and its range of services. The value chain, the core assets, and the core competencies, as well as the
business model, are its essential elements.1
Figure 3.1 provides an overview of the value creation system of media enterprises. Thereby, core assets, core competencies, and value chains are consid- ered as complementary concepts of analysis. While, the value chain facilitates the differentiated, structured presentation and analysis of media enterprises’activities, core assets and core competencies are the basis of competitive advantage. The
business model covers both concepts and also takes into consideration external aspects of media enterprises management.


	Value Creation in Media Enterprises

When developing a business model, initially, the individual value creation activities within the enterprise are analyzed. This analysis especially focuses on speciable physical and technological activities of an enterprise that are considered as components of a product that is benecial for the consumer (Porter 2004). A relatively simple but successful instrument to depict enterprises’value creation
represents the concept of the value chain analysis by Porter.
The value chain serves to functionally structure in-house activities, in order to identify approaches to improve the quality of products and processes. Originally, the value chain was developed for manufacturing companies. In this context, it
comprises primary activities with regard to physical production and distribution of products. These include inbound of materials, creation of the products, outbound logistics, product marketing and sales, as well as after-sales activities. Further, during the entire value creation process, supporting activities inuencing the indi- vidual primary activities are necessary.
Supporting activities include procurement, research and development, human resource management, and the infrastructure of the enterprise. The sequential por-
trayal of these activities claries the consistent orientation of value creation activities toward the consumer, whereas the prot margin represents the ultimate goal. The prot margin comprises the difference between total revenue and total costs that are incurred in conducting the value creation activities (Porter 2004).
The value chain can be understood as a vastly simplied depiction that has to be individually adapted to each enterprise. However, particularly concerning primary activities, the value chain structure cannot be transferred to service enterprises, respectively, media enterprises, without any difculty. In this regard, inbound
logistics may not be interpreted as logistic activities in the sense of inventory
planning since the input factors of the production process are often intangible. Furthermore, regarding operations on the advertising market, therst contact with advertising clients already occurs at this point since the advertising company considerably contributes to the input.
In terms of product creation in media enterprises, it is not appropriate to summa- rize all production activities in one single value-added step. For this reason, the aggregation and content production is separated from product composition and technical production. In sectors in which tangible storage mediums are required to

transmit the content, it has to be distinguished between technical production and distribution.
However, in other sectors, for example, both activities coincide in the radio sector. Customer service also does not have the same importance in the value creation chain of media enterprises as in the material goods sector or in many other service enterprises. Hence, an eventual analysis of customer services can be carried out at the point of distribution.
Although the media sector is very heterogeneous, the generic value chain in Fig. 3.2 may serve as a basis for further considerations. Here, supporting activities are not represented in the value chain, as generally, only minor media-specic characteristics arise. Some key elements for differentiating the value-creation
chain have already been addressed. Chapters 5–14, which deal with the various media sectors, will expand the topic by presenting the typical value chain models of each sector, taking the specic features of the various branches into account.


	Core Assets and Core Competencies

Core assets and core competencies are highly important for the long-term success of a media enterprise. Core assets are those tangible and intangible assets that play a central role in service creation and marketing. This includes the corporate brand name and its geographical scope. Furthermore, core assets are complemented by
core competencies. These represent the enterprise’s ability to combine its assets and core assets in such a way that special customer benets can be created. Examples of media enterprises’core competencies are high-quality programming or cross-media marketing expertise (Wirtz 2014).
Core assets and core competencies provide a lasting competitive advantage that is reected in the long-term attainment of above-average returns on capital (Fahy and Smithee 1999). Hence, the identication and management of core assets and core competencies is especially important for media enterprises.
 

	Analysis of Core Assets and Core Competencies in Media Enterprises

Core assets and core competencies provide media enterprises sustainable competi- tive advantages in the recipient and advertising markets. This chapter will portray the most important core assets and core competencies of media enterprises and clarify their signicance for long-term success.
Core assets are all those company-specic resources and assets that play a
particularly important role in an enterprise’s value creation process. Assets will turn into an enterprise’s core assets precisely when they are valuable for the specic enterprise and scarce on the market. Additionally, the assets may not be easy for
competitors to acquire and to imitate. Only in this way may core assets provide long- term competitive advantages (Barney 1991). Such core assets, for example, may be developed in the context of in-house rening of simple assets and production factors.
On the basis of these considerations, the following denition of assets and core
assets is developed.


The most important core assets of media enterprises are employees, brands, networks, and customer base. Employees are know-how carriers and often have complementary abilities. The combination of individual abilities in a team can lead to an improved service creation and thus to a competitive advantage.
Only those employees who are of central importance for service creation and marketing, such as employees in the editorial ofce of newspaper publishers, can be viewed as core assets. This core asset is only imitable with considerable difculty, since interaction patterns within a team cannot be gauged from the outside and are
not connected to an individual employee.
A brand is a benet bundle with specic features that can be recognized and differentiated by the relevant target groups. Brands are value propositions, and customers associate brands with specic, mostly positive product characteristics. Due to brands’uniqueness, their nature usually does not lend themselves to imitation and can hardly be substituted.
Therefore, brands are core assets of media enterprises. Since media products are experience goods, the brand name demonstrates a superior product quality. This is advantageous when launching new products, as brand awareness reduces advertising costs.
 

In the media sector, networks arise at various steps in the service creation process. These networks, for example, serve to procure information and thus deliver input for content creation. In many media sectors, there are production networks including specialized actors. With regard to distribution, access to certain distribution channels is frequently only possible via networks.
Networks require intensive maintenance and frequently personal commitment. Since they have evolved historically, it is difcult to imitate them. Furthermore, the scarcity of potential network partners limits the opportunities of imitation. Networks are highly important for service creation and provide media enterprises with differ- entiation or cost benets; they hence constitute core assets.
In the media sector, the size of the customer base in recipient markets is often
subsumed under the term“scope.”In many cases, the customer base is the result of successful, long-term operation in a certain market segment. Therefore, competitors can imitate customer bases only with difculty. Due to interdependencies between recipient and advertising markets, extensive scopes result in a prominent competitive
advantage. Greater scope in the recipient market tends to result in higher advertising revenues.
Core competencies are necessary to make use of core assets. Organizational competencies and abilities facilitate a skillful combination of assets and core assets. Competencies foster the coordination and use of core assets, resulting in competitive advantage for the enterprise.
The concept of core competencies originated in the management-oriented publi- cation by Prahalad and Hamel in 1990. According to these authors, core competencies are characterized by three factors:

•	Core competencies supply enterprises with access to various business areas.
•	Core competencies may be transferred to many different products, services, and/or customer groups.
•	Thus, core competencies of an enterprise form the basis for its core products that in turn generate business areas from which end products emerge.

Based on this discussion, competencies and core competencies may be dened as follows.

 

The following elements constitute core competencies of media enterprises: con- tent sourcing, content creation, format competence, distribution competence, and technology competence.
Content sourcing describes the ability to obtain high-quality information and entertainment content as well as to attract authors or producers for content produc- tion. This ability provides media enterprises relying on input products a unique competitive edge. This is especially true for procurement of exclusive content.
Content creation covers all abilities that are necessary for the production of successful media content. Subcompetencies of content creation are, for example, trend competence and renement competence. Trend competence is the ability to
identify social developments and issues at an early stage. Renement competence is
the ability to convert them into informative or entertaining media products such as TV programs. Subcompetencies are media-, genre-, and format-specic, as the factors that make the content attractive for recipients differ according to the purpose of the media usage and the target group. Thus, the production of informative content requires abilities other than the production of entertaining content.
Moreover, implicit knowledge of employees and organization-specic routines strongly inuences content creation. Their action mechanisms are not readily com- prehensible to outsiders, so that content creation hardly lends itself to imitation.
Further, on the basis of its importance for service creation, it is likewise hardly substitutable. Competence in content creation facilitates the attainment of long-term competitive advantages through superior service creation and constitutes one of the most important core competencies in most media enterprises.
Product development competence contributes to a protable positioning in recip- ient and advertising markets. It consists of the ability to develop promising media
products and to assess them with respect to market opportunities and chances of renancing. This competence requires in-depth knowledge about the specic market segment in which the media enterprise operates. This knowledge is usually available only implicitly and is thus non-transferable. For product policy in media enterprises,
this fact is of major importance since a balanced product portfolio facilitates a steady revenueow.
Promotion competence of media enterprises is primarily relevant for media
products that constitute individual products whose promotion of brand identity presents difculties. Movies, music productions, or books belong to this category. Promotion competence involves the ability to promote public attention to media products. In this manner, media enterprises achieve an advantageous market position or respectively improve their market position. It is based on knowledge that is generated in-house and is thus difcult to imitate. Since for many media products promotion competence is an essential success factor, it also has to be regarded as a core competence.
In various media sectors, the competence of cross-media utilization is likewise relevant. It is based on the ability to provide to the recipients content in a timely manner, in the desired amount, and via appropriate channels. On the one hand, media managers often have to adapt media products in a channel-specic manner for the respective target group. On the other hand, media enterprises have to be able to

control the distribution channels technologically and logistically. By utilizing media content, economies of scope lead to competitive advantages and to better recipient accessibility.
Closely associated with distribution competence is technology competence. In particular, technology competence describes the ability to employ modern informa- tion and communication technology to create and market content. In this manner,
media enterprises achieve efciency benets and realize cost-reduction potentials. Both competencies require considerable knowledge about distribution channels and
applicable or used technologies.
This knowledge is created through internal learning, which generates implicit and hence non-transferable knowledge. An overview of core assets and core competencies in media enterprises is provided in Fig. 3.3.


	Management of Core Assets and Core Competencies in Media Enterprises

The concept of core competencies offers a valuable basis for the strategy formation process in media enterprises. The analysis of current assets and competencies is an important premise to develop recommended follow-up actions, which are supposed to ensure the enterprise’s future success. Atrst, on the basis of an external market analysis, it is necessary to predict assets and core competencies that are strategically
important for the future.
In this context, media managers may derive scenarios for future procurement, advertising, competition, and recipient markets and, in turn, promising core assets and competencies. For example, it can be assumed that in the future it will become increasingly important for media enterprises to offer their content via various channels.
A comparison of the current asset and competence prole as well as the prole relevant for the future indicates need for action. Accordingly, an enterprise without access to the competencies that will make itt for the future should start to actively develop and expand its asset and competence basis. Thereby, strategic
considerations in the context of competence analysis also relate to the potential depletion of present assets and competencies.
Thus, assets and competencies in areas other than the core areas, as well as those which are assumed to have no strategic importance for the media enterprise in the future, may be resigned. Only these efforts can ensure the goal-oriented straighten- ing of an enterprise’s available resources and competencies at fullling core tasks. In Fig. 3.4 an overview of the analytic processes and the strategic course of action is
presented.



	Business Models and Types of Business

The concept“business model”is used rather inconsistently in the literature (Wirtz et al. 2015). However, despite the frequent use of the term“business model,”it is usually limited to issues focusing on business activities and revenue acquisition.“A business model is dened as the organization (or‘architecture’) of product, service and informationows, and the sources of revenues and benets for suppliers and customers”(Timmers 2001, p. 31). Accordingly, a business model illustrates the material, work, information, andnanceow both between the enterprise and its environment and within the enterprise itself (for a comprehensive discussion of the
 

denition, see Wirtz 2011a). According to Wirtz, a business model can be dened as follows:


Thus, the business model goes beyond the concept of the value chain because it is not limited to a physical production process but also includes service processes. A business model contains statements about which combination of production factors benets the implementation of an enterprise’s business strategy and which functions the participating actors have to perform. It explicitly involves the suppliers or strategic partners because“the unit of strategic analysis has moved from the single
company [. . .] to an enhanced network”(Prahald and Ramaswamy 2000, p. 81).
Regarding this process, business models resort to relevant, specic doctrines of business administration. The intention of the business model lies in its aggregation of
essential aspects of business administration subdisciplines in order to obtain a simplied, condensed overview of the company’s business activities. Figure 3.5 presents an integrated business model including its partial models.
The strategic components of an integrated business model consist of three partial models: the strategy model, the resource model, and the network model. The internal resources and networks build an upper unit of the integrated business model concept and are therefore particularly important when analyzing value creation in business models. These strategic partial models generate an operational scope for the other
partial models and dene which types of value creation are generally possible.
In the strategy model, the top management denes medium- and long-term goals and activities of a company in order to persist on the market. In this context, it is
generally postulated that these strategies unite the business vision, mission, and goals. The determination of the positioning and denition of strategic business areas is connected to this. A strategic situational analysis that comprises changes in framework conditions, scope of action, and strengths and weaknesses of the com- pany serves as a basis.
In the resources model, the core assets and core competencies are depicted as well as their subordinate elements relevant to value creation. It is thus a summary of all relevant tangible and intangible input factors of the business model. In this process, both internal and external resources and competencies are presented. The network model gives an overview of the value constellation partners in value creation and the connections between different business models. In this context, the network model is
an instrument of the top management to control and manage value distribution within a collaborative value creation. Different tangible and intangible streams of information and goods are analyzed in this process. In this way, particular stakes in value creation may be determined and classied to a network of connections and relations.
The partial models of the area of customer and demand components depict basic inuence factors for the design and operation of a business model. The three main components are the market offer model, the customer model, and the revenue model. The information from these models describes the corporate environment and connects it to internal value creation by means of revenue. They are consequently
the link between the business strategy and its value generation. Before transferring strategic targets to the process of value creation,rst adaptations to customer needs and market situations need to be made. The data that is obtained by means of the customer and market components can also be used for the corporate strategy.
The market offer model is oriented along the market environment. This model seeks to make use of available market opportunities. This partial model is therefore closely aligned with competitors, the market structure, and the value offer, in other words, the products and services. As a result, the company’s value proposition is developed and shaped against the background of an analysis of competing business
models.
The customer model is used to display the offers (products and services) relevant to the business model and the customer structure. The customers are segmented in order to dene different target groups. Different strategies are derived from demo- graphic differentiation criteria and differences in usage patterns. In the literature, the customer model is therefore also of particular importance for the development of a
business model.
Powerful information and communication applications support the necessary activities and thus offer the opportunity to determine the demand according to the needs of specic customer groups. The segmentation of markets pursued to date on the basis of geographical, sociodemographic, psychographic, and behavioral criteria can therefore be rened.
This ultimately means that individual customers and market segments (segment-
of-one) can be addressed individually according to their specic preferences. In addition, innovative applications on the Internet make it possible to increasingly integrate end customers into the service creation process. In this connection, efcient and effective data management becomes more relevant to success in order to identify
the needs and willingness of users to participate.
Actual revenue streams and their relevance to the business model are managed by the revenue model. This partial model depicts the value capture of internal value creation. This means that it claries how and to what extent the value generated can be monetized for the company. The revenue model is thus responsible for the
absorption of a portion of the added value generated from the production of goods and services.
The partial models within the value creation component comprise the internal value generation. In this context, the manufacturing model, the procurement model,
 

andnancial model are relevant. Here, the focus is put on how and under which conditions value can be generated by means of a central value creation logic. The partial models of value creation are thereby inuenced by the strategic components as well as the customer and market components of the business model.
The procurement model describes the structure and sources of the raw materials, goods, and services that are necessary for the production of value-added goods and services. In this context, the specic procurement phases of initiation, agreement, and processing must be addressed in order to ensure a structured procurement process, particularly by means of electronic procurement.
Furthermore, the market structure and market behavior on the procurement markets have a direct impact on the procurement model. For example, if there is a high market concentration on a procurement market, there are only few potential suppliers available who also differ only marginally in their offerings (peaceful oligopolistic behavior). This must be considered in the different procurement phases.
The value creation model depicts the combination of goods and services as well as their transformation into offers. Here, the economic relationships between the input quantities of the production factors and the achievable output quantity are of particular interest rather than the technical laws of production. Based on the seg- mentation of demand, the service offer model provides information on which service spectrum shall be offered to which demander or customer groups. The individual
demand groups are each to be offered a segment-specic range of services according to their in parts widely differing demand characteristics. In this context, the Internet
and innovative information and communication applications have opened up the possibility of mass customization, thus realizing an individualization of the service offering at a low cost level.
Thenancial model provides information about whichnancial resources are transferred to a business model and how the renancing of corporate activities can be organized. Consequently, the model also shows the sources ofnancing for the business model. Furthermore, with the aid of data from recent periods, it enables an evaluation of thenancial success of a business model and thereby allows to forecast prospectivenancing and liquidity requirements.

	Revenue Model

The revenue model constitutes an essential component of the business model of an enterprise. In discussing the way revenues should be realized, various revenue models are conceivable in the media sector. To make fundamental decisions on possible revenue models regarding strategic management, the latter has to systema- tize these models.
For that purpose, the enterprise is modeled in its economic environment. Thereby, the enterprise is accompanied by private and legal persons or entities that operate in the markets, respectively, as governmental institutions (see Fig. 3.6). The illustration shows the enterprise’s cashows, which constitute the sole deciding factor. Cash
ows between external actors are not applied in this context.
	
	Recipient Market

Since media products are directly addressed to the recipients, the recipient markets, being the primary source of revenue acquisition, should berst presented. Regarding transaction-dependent payment, the recipient only pays for the utilization of media products. The amount of the payment depends on the activity quantity (e.g., price per
newspaper, price per movie for pay-per-view TV) or the duration of the service (e.g., price per minute for online media). In contrast, regarding transaction-independent payment, the recipient does not pay for the actual use of the media product but for the opportunity of utilization.
Transaction-independent payments are predominantly paid on a regular basis (e.g., newspaper subscription, pay-tv subscription). The use is frequently limited by natural and technical restrictions. A recipient’s television consumption, for example, is limited by time. Also, the data transfer of online media is limited by broadband or server capacity.
Apart from media usage payment, fees may also be charged for media access. Considering fees, which are usually paid only once, the customer receives the technical and administrative prerequisites for the use of a media product. Thereby, the customer is usually not entitled to usage.
 

For example, payments for media access are collected in the form of registration fees. The acquisition of a technical device also falls into this category, provided that the payment is made to a media enterprise (e.g., decoder for pay-tv). However, in both cases, the recipient usually pays an additional payment for the media use.
Other revenues, aside from remuneration for media access and media use, are realized in the recipient markets, e.g., revenue from the use of archive services offered by newspapers or television broadcasters. Marketing of merchandising products also falls into this category.


	Advertising Market

For some media, a signicant amount of revenue is realized in the advertising market. Companies pay for advertising space and related services of media
enterprises. These are, for example, newspaper ads, TV spots, or Internet banners. Product placement and sponsorships are additional forms of advertising which may be marketed.
Aside from advertising revenue, other revenues can accrue in the advertising market, e.g., through the sale of user data. Additionally, commissions are increas- ingly being paid to media enterprises, primarily in the Internet, if transactions with a customer are generated via a link provided by the media enterprise (e.g., the afliate program of Amazon).


	Licenses

Utilization rights and licenses are the third form of revenue. In this context, utiliza- tion rights are original rights, which means that they allow the owner to discretionary use the content. Licenses are derived rights that may only be used to the extent that the owner of the original rights permits. Book publishers who own the utilization rights to a bestseller and grant licenses for paperback editions can be cited as an example. In the rights acquisition market, media enterprises act both as demanders 
and as suppliers. Revenues are realized primarily by using the enterprise’s own productions but also by reselling previously acquired utilization rights and licenses.


	Government Fees

Aside from the revenues described above, Fig. 3.6 lists the government as a fourth source of revenue. Although the realized fees are not revenues in a business administrative sense, in certain media sectors, they are signicant for media enter- prise management due to their large volume. They hold an exceptional position within the system of revenue models since they are regulated by the government and
hence do not serve as management action parameters.
 

For media enterprises’nancing, no general conclusions can be drawn as to the relevance of revenue models discussed above. This is partially due to the fact that the revenue mix is branch-specic. Furthermore, within the individual media branches, likewise no general conclusions are possible since the choice of revenue models
depend on the type of business model. However, two important aspects need to be considered when it comes to the decision of revenue-model architecture (European Communication Council 2001).
On the one hand, selecting revenue models should be oriented toward the cost situation of the undertaking. In the case of predominantly continuous costs, regular payment should be favored, whereas in the case of high development costs, lump-
sum payments for media access make more sense. On the other hand, the recipients’ perception of benets also needs to be taken into account. This is particularly problematic if high development costs of a new product result in high fees for
media access but the recipients, however, cannot assess its usefulness in advance due to the novelty of the product.
For the purpose of comparing enterprises and branches, it is recommended to classify the various business models of media enterprises. Therefore, the business models will be aggregated into groups based on selected characteristics. Here, a clear demarcation is not always possible, so that overlaps between the groups may occur. However, it is decisive that the business models be relatively homogeneous within a group and as heterogeneous as possible between the groups. The demarcation criteria have to be selected accordingly.


	Production of Goods and Services Model

The production of a goods and services model portrays the media enterprises’core activities that are necessary to produce and deliver media products. Cost drivers and potential cost reduction measures can be identied by analyzing the major processes and procedures.
The comparison of production of goods and services models of different enterprises further allows to identify of competitive advantages that are based on superior process structures or eliminations of specic processes. For instance, in several branches direct distribution is usual, whereas in other branches there are complex multichannel systems involving various intermediaries. To illustrate the
production of goods and services models, the cost and revenue structure of the service creation can be used.
Figure 3.7 depicts the typical cost and revenue structure of media enterprises. The starting point is the revenue thatows into the media enterprise from one sold copy of a media product. Revenue is structured according to its different sources, e.g., advertising and sales.
The next step includes the allocation of costs and cost fractions that accrue during the production and distribution of media products. The individual pools of cost can be summarized asrst copy costs, production and distribution costs, as well as trade margins.

First copy costs refer to all costs that accrue with regard to the creation of therst sample of a media product (rst copy). They include, for example, the answer print of a movie or the master tape of a music production. The structure ofrst copy costs depends on the type of media. Besides media production costs (content production), the costs for marketing and administration are included in therst copy costs in all media branches. In a few media branches, costs for advertising acquisition and
licenses further accrue.
The average share of therst copy costs in total turnover for a media production is around 55%, but it varies signicantly between the various types of media. The higher the share ofrst copy costs in comparison to the total turnover, the larger the economies of scale for the media product’s duplication.
Media depending on a physical storage medium (e.g., such as paper) and on
expensive production procedures have a very high percentage of production and
 

distribution costs, whereas for digital products the share of duplication costs is particularly low.
If media products are not delivered to the recipient directly by the producer, the costs of different distribution stages (intermediaries) must also be taken into account. The trade margin averages 13.6%. Since in many branches the trade margin comprises a major share of thenal retail price, direct distribution constitutes an interesting strategic alternative for media enterprises. This applies to the book sector,
for example, as the share of the trade margin is around 29% of the total turnover.


	Types of Business

The value creation chain of media enterprises presented in Sect. 3.1 constitutes a starting point to differentiate various types of business in the media sector. Thereby, a particular type of business is especially dened according to the activities adopted by the media enterprise within the value chain. Content integration, content bun-
dling, and content presentation are considered the three most important types of business in media management.


	Content Integration

A content integrator is a media enterprise that adopts all activities along the value creation chain. Such an enterprise is characterized by an overall high depth of vertical integration. In particular, program design and content development are carried out by the enterprise itself. Both the production of in-house content and the procurement of content from outside sources usually take place in terms of content development. The advantage of such a business type primarily lies in the opportunity to set oneself apart from competitors by using attractive content.
In the intermediate term, this can help to build up a strong brand name. However, it has to be noted that the implementation of this type of business is associated with high efforts. Certain core assets and competencies are necessary to develop attractive content. For example, a highly educated and specialized editorial department is
required to provide high-quality content. Furthermore, generating ideas in the context of program conception constitutes a signicant role in the enterprise’s ability to distinguish itself from the competition.


	Content Bundling

If a media enterprise primarily sources its content from the public domain, with only minimal editorial renement, this is called content bundling. It is characterized by a medium depth of vertical integration. The enterprise is mainly concerned with selecting product components and designing its content-program offerings. Since
 

also in this context some editing takes place, particular resources are necessary for content bundling. However, the resource expenditure is rather moderate.
Therefore, the advantage of this type of business is cost efciency, as well as a relatively broad coverage of various subjects including peripheral issues. The main
disadvantage is that differentiation and positioning of the enterprise are more difcult. In the area of the Internet, there are a few enterprises representing this type of business, e.g., msn.com.



	Content Presentation

Content presentation with the least depth of vertical integration is a third type of business. The supplier specializes in content compilation and layout without any editorial renement. The content is either completely supplied by a partner or generated by a standardized public domain source. The resource expenditure is minimal for this type of business because it does not need to employ its own editors
to develop the content. Thus, content presentation is the most cost-effective solution. Figure 3.8 illustrates the various types of businesses. Therefore, the length of the respective arrow indicates which activities are undertaken by the media enterprise in the respective type of business. Further, thegure illustrates the respective depth of
 

vertical integration of the particular types of business. In a slightly modied form, this is resorted to the value creation chain of Sect. 3.1.

Knowledge Review Questions
1.	Describe the value chain of the media industry!
2.	What are the core assets and core competencies in media enterprises?
3.	Draw the submodels of an integrated business model!