Viacom is Successful in 2011 - Case Study Example

Analysis of Viacom’s Case al Affiliation Viacom initially emerged as at around 1970 as an independent Company. It was established by the CBS Broadcasting with the aim of complying with rules and regulations that had been set by the Federal Communications Commission of U.S. in which television stations were barred from owning TV cable systems. With constant conflicts of interest’s possibilities between television networks and cable companies, Viacom separated to be an independent entity hence becoming one of the largest U.S. cable operators (Hietala, Kaplan, et. al, 2002).

 When Viacom’s progress later became detrimental due to massive competitions, Redstone sought for the Company’s acquisition by cashing in a lot of money. From this point, Viacom would have entirely taken a number of steps and guidelines in its acquisition so as to create better synergies. First and for most, Viacom had to stick to most of the established strategic goals and objectives including its vision that aims towards becoming a globally content provider. This could be done through ensuring that all the financial services have been duly delivered to customers.

The other factor that was extremely necessary was the aspect of detailed planning. Here, planning can be taken to encompass cost saving (hard synergy) and revenue enhancement (soft synergy). Cost saving basically has to do with the aspects of redundancies such as the logistics, production, admin, among others, while Revenue enhancement on the other hand has to do with the aspect of cross-selling as well as strength-weakness and strength-strength matching (Hietala, Kaplan, et. al, 2002). In summary, the ultimate cornerstones of for Viacom’s creation of better synergies can be taken to include the setting up of comprehensive and extensive strategies in terms of revenue enhancement and financing, beefing up operations through cross referencing and joint contracts acquisition, establishment of advanced management and ICT systems, and finally the aspect of establishing an outstanding culture that will enhance massive co-operation at the management level.

ReferencesHietala, P., Kaplan, S., & Robinson, D. (2002). What is the price of hubris?. Cambridge, MA.: National Bureau of Economic Research.