TD management
oceane.macquet08
Created on October 20, 2024
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Transcript
The Strategy case : the advertising industry in the2010'sGROUP 1 : Abebe Fikir - Alam Christina - Bellalouna Selima - Ferktaji Leila - Slimani Sarah - Macquet Océane
ORALPRESENTATION
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Start
SUMMARY
04
02
01
03
Essentials items
Keys factors of sucess
Two axis map of the advertisement strategic groups
Analyse each force of the strategy case
5+1 forces
Through different aspects
PESTEL analysis
PESTEL analysis
PoliticalInfluence
Public authorities allocate their budgets for advertising to promote their policies.For example, the British governement spent £285 million on advertising in 2012.
EconomicInfluence
"emerging markets would contribute 63% of advertising investment growth between 2012 and 2015"
SocialInfluence
- Emergence of the consumer society in the 20th century- Marketing in advertisement is dependent on countries cultural and traditional background
TechnologicalInfluence
- Arrival of digital advertisers will change the methods of transmitting ads- Replacement of individual creativity by algorithms
+info
PESTEL analysis
EcologicalInfluence
- Increased lobbying from various associations to reduce exposure to ads and overconsumption- Even though there is lobbying, it didn't stop the ad sector from growing at a phenomenal rate
LegalInfluence
-Different rules and laws are applied in every region of the world, which can be a challenge for ad agencies
- The state acts as a major contributor in the sector of ads.- The state's decision can have an impact on the economic state of the sector (development or decline).
5(+1) forces
01. Threat of substitutes
- Shift from traditional methods to new methods of advertising.- Emergence of several social media plateforms (ex: Facebook)
02. Competitive rivalry
-The way companies convey their message and how much greater they are than their competitors.
03. Bargaining power of buyers
- Agencies need to focus on specific target groups and make sure the products/services satisfy their needs.- Competitive intensity in the ads sector between companies.
04. Threat of new entrants
- More agencies in the ad domain is equivalent to a higher level of competitiveness between them.
05. Bargaining power of suppliers
- The data collected by the suppliers and given to the ads agencies is negociated.- Depends on whether the relations between suppliers and agencies are smooth or not.
06. Power of the state
Proctor & GambleNestléSamsung
GoogleFacebookYahoo
Public OmnicomGroup
Young & RubicamAKQARazorfish
Adam + Eve
Budget for advertising
Size of the group
Two axis map
Somes keys factors of success for advertising companies include :
- Creativity
- Efficiency -> low costs
- Innovative
- Ecological responsability
- Competitivity
- Brand image (well-managed)
- Quality of work
- Well-informed
- Effective money management
- Good cooperation between stakeholders
- Effective model of governance
- Specialization in a field to target a more specific audience
- Expansion over a large geographical scale and bypassing of norms and regulations in countries
- Capacity for merging companies (ex: the merging of Omnicom and Publicis enabled the Group to obtain 40% of the US advertising market)
Keys factors of success
- New model of remuneration for advertisement agencies- Decrease of ad budgets and consumption in economic crises- The rise of emerging markets affecting advertising- Increase in expenditure for advertising by regions that neglected it- Capacity of merging companies with better control of the sector and more profits