5-Group Presentation - Case Study

pptx

School

Grantham University *

*We aren’t endorsed by this school

Course

Subject

Marketing

Date

Nov 24, 2024

Type

pptx

Pages

Uploaded by ChancellorBravery96491

Case Study Student’s Name Department, Institutional Affiliation Course Code, Name Instructor Date

Introduction  This collaborative activity seeks to apply the learned tools in the case study example on Global Forces and the Advertising Industry .  Also, it embarks proposing a strategy to the company’s Board of Directors, integrate various concepts, as well as the limitations and effectiveness of the proposal.  Notably, the global advertising industry is undergoing significant transformations due to various global forces, which need to be carefully considered for developing a strategic proposal.

PESTEL Analysis  Political: Governments invest heavily in advertising for public-sector services and influencing behavior, creating opportunities and challenges for advertising agencies.  Economic: The industry has witnessed substantial growth, with spending exceeding $569 billion globally in 2015 (Cardwell, 2017). Emerging markets like BRICS are becoming significant contributors to revenue.  Social: Changing patterns in global consumer markets impact the industry, as consumers become more brand-aware and sophisticated in developing economies.  Technological: The digital revolution led by companies like Google, Bing, and Yahoo has disrupted traditional advertising methods, emphasizing the need for digital expertise (Cardwell, 2017).  Environmental: Environmental concerns can influence advertising campaigns, especially for brands focusing on sustainability and corporate responsibility.  Legal: Regulations regarding advertising content and data privacy vary globally, affecting how agencies operate.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Porter's Five Forces  Threat of new entrants: The industry's high concentration of large agencies and the need for specialized skills create barriers to entry.  Bargaining power of buyers: Large advertisers like Coca- Cola and Procter & Gamble shifting to results-based compensation models increase their bargaining power (Cardwell, 2017).  Bargaining power of suppliers: Media companies and digital platforms hold significant power as advertising channels.  Threat of substitutes: Online advertising and digital media pose a threat to traditional advertising channels.  Competitive rivalry: Intense competition exists among agencies, with both multinational conglomerates and smaller boutique agencies vying for clients.

Strategic Groups  The industry comprises different strategic groups, including multinational conglomerates, mid-sized agencies, boutique agencies, and digital media agencies.  Some strategic groups include Microsoft, Apple, Samsung, Nestle, Coca-Cola, Unilever, Procter & Gamble, Facebook and Google (Cardwell, 2017).  Some of these groups are organizations within the same industry or sector that are competing on a similar basis.  Each group competes based on different factors like creative output, market knowledge, and global reach.

Simplified Value Chain  Noteworthy, the value chain in advertising involves client relationships, creative development, media buying, and campaign execution.  As highlighted in the case, digital platforms and data analytics have become integral in modern campaigns (Cardwell, 2017) . VRIO Analysis  Value: The industry's ability to create effective advertising campaigns adds value to clients.  Rareness: Creative talent and specialized knowledge are relatively rare resources.  Inimitability: Creative talent can be challenging to replicate, but other agencies can invest in digital capabilities.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

SWOT Analysis o Strengths: Strong creative talent, established client relationships, global reach, and a history of successful campaigns. o Weaknesses: Dependence on traditional advertising methods, resistance to change, and competition from digital media agencies (Cardwell, 2017). o Opportunities: Growing advertising budgets, expansion into emerging markets, and the potential for innovation in digital advertising. o Threats: Competition from digital platforms, changing consumer behavior, and regulatory challenges.

Strategic Response and Proposal  Given the above analysis, I propose the following strategy to sell to the company's Board of Directors.  Objective: To adapt to the changing landscape of the advertising industry and maintain a competitive edge by embracing digitalization, expanding into emerging markets, and delivering measurable results to clients. Key Initiatives  Digital transformation: Invest in technology and talent to become a leader in digital advertising. Develop data analytics capabilities to provide targeted and data-driven campaigns for clients. 

Key Initiatives  Results-based compensation: Shift towards results-based compensation models, aligning with the preferences of large advertisers like Coca-Cola and Procter & Gamble.  Collaboration with digital giants: Strengthen partnerships with digital platforms like Google and Facebook while mitigating potential conflicts by offering complementary services.  Talent development: Continuously attract and retain creative and digital talent to foster innovation and maintain a competitive edge.  Ethical responsibility: Embrace ethical marketing practices, particularly in emerging markets, to build trust and long-term relationships with clients.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Limitations  Implementation requires significant financial investments, straining resources for smaller agencies.  Cultural and regulatory challenges in emerging markets may hinder expansion efforts.  The shift to results-based compensation models may lead to initial client resistance and requires effective change management.  The rapid evolution of technology may necessitate continuous adaptation and potential resource allocation for research and development. Effectiveness  Explores global growth opportunities in emerging markets and embraces results- based compensation models.  Addresses the industry's changing dynamics by focusing on digitalization, global expansion, and results-based compensation, aligning with the PESTEL analysis.  Leverages the competitive advantages of creative talent through VRIO and establishes a clear direction for growth and adaptation in a competitive industry through Porter’s Five Forces.

Conclusion • Overall, in a rapidly changing advertising industry, our agency's strategic response combines digital transformation, global expansion, results-based compensation, sustainability, and creative excellence. • While there are limitations and challenges, this comprehensive approach positions us to thrive amidst the disruptive forces reshaping the industry. • Therefore, by leveraging our strengths and addressing weaknesses, we can achieve sustainable growth and competitiveness in the global advertising landscape.

Reference List Cardwell, P. (2017). 'Global Forces and the Advertising Industry,' in G. Johnson, R. Whittington, K. Scholes, D. Angwin and P. Regner (Eds) Exploring Strategy. 11th Ed. Harlow: Pearson Education, pp. 92–95.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

5-Group Presentation - Case Study

Related Documents