The importance of synergy in a global institution

The importance of synergy in a global institution

Synergy is important in a global institution because of the way in which it benefits the economy, due to synergy different countries can benefit from the profits because of international collaboration, because of international collaboration new media forms such as Blu ray and Ultraviolet can be sold and introduced into other countries, also thanks to larger companies such as Viacom and Time Warner media quality has been improved, eg.24/7 News Channels.

Because of synergy, merchandise creators like Hasbro are able to make more profit by obtaining the license to create toys, this way the production companies that make the movie, make more profit from selling the license and Hasbro make money by selling the merchandise this also helps the economy because of the jobs that are created. One good example is Transformers which is in fact the opposite way round, Hasbro officially own the right to the Transformers Brand they then sold the license to Viacom to allow them to make the films, they also did this with the popular strategy game Battleship in which the license was sold to Universal Studios who then created the movie, but the difference between these two examples is that when Hasbro sold the license for transformers they continued to create the merchandise and products that ran alongside the movies allowing Hasbro to generate more profit this also signified the beginning of Hasbro’s move into the movie market.

Synergy is not just important internationally its important on a small scale, for example This Is England if it was not for synergy it would not have been released on the scale it was, it would have only been release in a minimal amount of cinemas, the main companies involved in the synergy where Film4, Warp Films and Optimum Releases, if it wasn’t for the synergy of the production studios and Optimum Releases it would have been distributed as well as it was and would not have been such a hit which then lead on to a TV based sequel.

Some of the larger examples of synergy are The LEGO video games, in which companies like Time Warner sell the License of Harry Potter to LEGO, whom then either sell the license of both Harry Potter and LEGO to a game designer company, or they would go into partnership for the project and then take a cut of the profits, without synergy the media world that currently exist wouldn’t exists and because of synergy the media world will keep evolving and growing.