Read the attached description of the exercise.
Vertical Integration or Diversification Exercise.docx 
Think about the industry the company started in, or perhaps which industry has historically generated most of its revenue or profits.

Are these acquisitions and new brands related to that industry or something entirely new?
Do their acquisitions indicate a vertical integration strategy “or a diversification strategy? 
Report and discuss the findings here.

Student 1:
Topic 1: Google is definitely a diversified integration. Googles job is actually to sell advertising. Finding more ways to sell advertising is what Google has to do. When Google can get more ways to sell advertising, Google can make more money, so Google needs to find more outlets for its ads. From the perspective of Googles behavior, this is still very obvious. Googles acquisition of Motorola, or other network service providers, essentially allows more people to use Googles services, thereby obtaining more advertising exports.
Topic 2: Alibabas integration is a diversified integration. The essence of Alibaba is to sell. So from this point of view, Alibaba needs to use different content to build its own e-commerce empire. For example, e-commerce needs a relatively extensive express network or cloud service information to support rapid operation. These contents are essential content for Alis survival. Therefore, Ali needs to build a more extensive e-commerce from a diversified perspective. Shang Kingdom.
Topic 3: The acquisition of Microsoft must be a vertical acquisition, because in this process, Microsoft needs to continuously make its products serve all people who need to work more precisely. Microsoft needs to continuously improve its office software suite. Going to Microsoft is to build a complete office ecosystem, so he will continue to acquire companies that can make his office suite better, so as to achieve further goals.
Topic 4: For Disney, the core content is Carnival, so it will continue to acquire a number of different companies, but these companies can become part of Carnival, such as Pixar and Marvel, these companies have their own The film and television business can also sell peripherals or sell more derivatives, so I think in fact this kind of acquisition is a packaged acquisition, not quite like vertical integration nor diversification. This more popular term is IP acquisition, and it is a wise choice for Disney to use these companies to grow for itself.

Student 2:
Vertical integration involves a firm moving into a new part of a value chain that it is already within, while diversification requires moving into an entirely new value chain. Many firms accomplish this through a merger or an acquisition, while others expand into new industries without the involvement of another firm. In business, vertical integration means a whole supply chain of the company is controlled and owned by the organization.
Google: I think Google is taking vertically integrate strategy. In 2006, Googles biggest acquisitions included acquired the video-sharing site YouTube for $1.65 billion in Google stock. In 2007, it acquired DoubleClick for $3.1 billion, transferring to Google valuable relationships that DoubleClick had with Web publishers and advertising agencies. In 2011, Google made its largest-ever acquisition to date when it announced that it would acquire Motorola Mobility for $12.5 billion. Although it acquired different companies, it always keeps its own control of the company supply chain. For example, DoubleClick transferring to Google valuable relationships that DoubleClick had with Web publishers and advertising agencies.  Google has a diversified business model, primarily making money via its advertising networks that, in 2019, generated over 83% of its revenues, which also comprise YouTube Ads. Other revenue streams include Google Cloud, Hardware, Google Playstore, and YouTube Premium content.
Disney: Walt Disney Company is one of the largest vertical integrator. Since the 1980s, Disney has created and acquired corporate divisions in order to market more mature content than is typically associated with its flagship family-oriented brands. Some of the Disneys Biggest Acquisitions are Capital Cities/ABC and ESPN, buys stake in Hulu, Fox Family Channel, BAMtech. It creates and produces film and television properties, and are then marketed and distributed by Disney throughout the world, who therein broadcast on affiliated networks such as ABC. Majority of the new brands are related to its own industry, however, among them, BAMTech was a well-thought-out acquisition as it brought high technology into its stable of production houses, it also means Disney has step in the sport industry now. Moreover, Disney also making it possible to control each step through customers. The company sell all their products from Disney retail stores, such as home videos, toys, and games, and sold directly to the customers. Many of the products are found in Disneys hotel, restaurants and theme parks. The companys revenue is generally come from five categories, which are studio entertainment, Disney consumer products, Disney interactive media, park and resorts, and Disney media networks.