Viacom Company - Case Study Example

Viacom Case History of specified companies is able to amaze and teach entrepreneurs how to make own business successful and what methods should be used. Taking into account such well-established brands as Dream Works, Spike, Comedy Central, Logo, MTV, Nickelodeon and VH1, automatically you start to recall the united name of all mentioned trademarks – Viacom that still stays the biggest and most vigorous competitor of Walt Disney and Time Warner. Beginning in 1970s as cable operator, Viacom has managed to become a global entertainment content company.

Currently a major media conglomerate operates through two main segments: Media Networks and Filmed Entertainment, producing and distributing a huge variety of motion pictures. Collecting sufficient number of failures and losses during long period of its formation, in late 1980s the company was bought by Sumner M. Redstone, who managed to see great potential of his acquisition. Hence with a help of numerous successful projects of launching classic sitcoms, Showtime movie network, Ha! Channel a leading conglomerate was able to purchase five television and nine radio stations.

However, a decline in popularity of pay-TV compelled the senior management of Viacom to switch the main sphere of its performance, setting new challenges. In this respect, Redstone decided to aim at video rental markets. In 1990s the company made the biggest and most profitable deal, purchasing oldest producer of motion pictures, Paramount Communications Inc. Later on acquiring Blockbuster, suddenly Viacom became the owner of thousands of video and music stores. Despite all getting advantages of new business fields, mentioned acquisitions pulled Viacom in considerable debt that damaged the profitability of the company dramatically.

In this respect the main solution of company’s reanimation was selling off Viacom’s cable networks and all radio stations. Till the end of 1990s Viacom regained former stability entirely, leaving debt and losses in the past. The example of Viacom performance represents a policy of diversification and switching over totally new spheres and markets. Taking into consideration its experience, it may be recommended to all other companies to find power, courage and strength for trying themselves in different fields, exploring unknown horizons and being not afraid of any impending obstacles.

Because it may happen that beginning with one idea, company reveals opposite aspects of performance later, which will bring its executive officer a bigger success and self-actualization. Works Cited Impoco, Jim, "America's Hippest Grandpa," U.S. News & World Report 27 Sep. 1993: p. 67. Print. Stelter, Brian. “Viacom Reports 20% Increase in Revenue, While Discovery Posts 9% Rise”. The New York Times 29 Apr. 2011: B3. Print.