What is cross ownership?

Cross ownership is a type of business arrangement in which one entity owns two or more businesses that operate on the same general market and are somewhat similar to nature. The term is also sometimes used to indicate an investment agreement, in which the investor can own significant shares blocks in several different companies that trade with the company owned by this investor. In both scenarios, the motivation for cross ownership is usually to strengthen business relations and links between the parties and control the level of competition that exists on the market.

It is reportedly owned by a heavy cross if one owner has control over a number of companies that represent a significant amount of the market. For example, if the corporations owned several broadcast television stations, several key radio stations and the main newspaper that serve a specific community, this company would be involved in Crstrategie OSS ownership. It means that even though there is still a certain market in this marketCompetition is maintained at a minimum and allows corporation to freely use its resources to capture the total larger share in this market. In some countries, this particular high concentration of cross ownership is known as circular ownership, referring to the fact that societies are found throughout the community.

cross ownership can occur in other industrial environments. The communication company may have a distance of remote services as the main business as well as its own other company, which focuses on providing services for automatic conferences that use the owner's network to provide these services. Similarly, the same communication company can offer fax broadcast services using the network.

Another example of cross ownership may occur in the earlier industry. One owner can operate a chain of hamburgers, a pizza chain and a chain that specializesE for foods such as Mexican food or fried chicken. In the community, the owner can build one of these restaurants to capture a larger market share and use the supply of restaurants provided by restaurants, which is also under the ownership of the same entity. The result is a strong market position, lower costs due to purchase or volume reserves and a certain degree of protection against changes in the economy.