Growth Opportunities for Captify: Analysis and Strategies

This document provides an overview of Captify, a fast-growing digital media business in the UK. It analyzes key factors for growth opportunities using PESTLE and SWOT analysis. It also evaluates growth strategies using Ansoff's growth vector matrix and discusses analytical tools for considering growth opportunities with a focus on competitive advantage. Additionally, it critically evaluates the risks associated with growth opportunities and suggests ways to alleviate them.

GROWTH
OPPORTUNITIES

TABLE OF CONTENTS
Overview of Captify........................................................................................................................1
Analysis of the key factors when considering growth possibilities.................................................1
Apply Ansoff’s growth vector matrix and evaluate the growth opportunities................................2
Analytical tools when considering growth opportunities with a focus on competitive advantage. 2
Critical evaluation of opportunities for growth, considering the risks associated and how they
may be alleviated.............................................................................................................................4
REFERENCES................................................................................................................................6

Overview of Captify
Captify is one of the fastest growing digital media business in UK. It was launched in
2011. It was founded by Adam Ludwin and Dominic Joseph and is located in London, England,
United Kingdom. It is a data driven medium sized company that specializes in media decisions
and search intelligence. Other than this, they also provide services like direct response, data
aggregation, and insights. They use more than 80 technology products and services including
HTML 5, Google Analytics, and jQuery, according to G2 Stack.
Analysis of the key factors when considering growth possibilities
Key factors to be considered for growth opportunities can be explained with the help of PESTLE
and SWOT analysis
PEST analysis
Political Factor: Captify can focus upon expanding their business and for this they can apply for
bank loans as well. In current pandemic situation banks have provided leniency and
organizations won’t be required to pay interest on loan for first 12 months of loan. Not only this
if their organization require further support for expansion then thy can apply for other
government support like corporate financing facility etc.
Economic Factor: Current pandemic situation has impacted overall economic condition of all
the countries. Not only these currently various industries are facing recessions problem. In this
condition digital advertisement product or service provide by Captify can help in expand their
business because digital advertisements are much cheaper than other kinds of advertisements.
Social factor: In past few years focus of consumers ad organizations have shifted from physical
stores or shops to online business and online presence of organizations. This change in
preference of customers can further provide growth opportunities to Captify as they provide
excellent search intelligence, advertise solutions and publisher solutions that can help in
expanding their customer base.
Technological factor: Main USB of Captify is their usage of new technologies. They can focus
upon developing a research and development team that can focus upon identifying new
technologies that can be adopted and used by them so that they can provide more variety
products and services to their customers.
SWOT Analysis
Strengths Weaknesses
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Excellent quality of products and services
Work upon advance technologies Increasing competition
Opportunities
They can focus upon working with
artificial intelligence technology in order to
enhance search intelligence service
provided by them.
Threats
Increasing competition and not working upon
advance technologies can impact their overall
growth opportunities.
Apply Ansoff’s growth vector matrix and evaluate the growth opportunities
There are various kinds of growth opportunities for Captify that can hep them to grow
further. These growth opportunities can be identified with the help of Ansoff matrix. This matrix
helps in explaining 4 growth strategies.
 Market penetration strategy: Captify can focus upon expanding their business in existing
market with exiting products and services. They can focus upon their promotional activities
of providing discounts.
 Market development strategy: they can focus upon entering into new market and sell existing
products and services. Like they can focus upon expanding their business outside UK
providing existing products and services to new market segment.
 Product development strategy: organization can also focus upon introducing and selling new
products and services to existing market segment.
 Diversification strategy: Using this strategy Captify can focus upon introducing a new
product or service into the new market. It is one of the most- riskiest product-market
strategies but if this strategy is implemented successfully then it can result in assured growth.
They can use social networking platform for reaching new potential customers and providing
new products and services to them.
Analytical tools when considering growth opportunities with a focus on
competitive advantage
It can be explained with the help of Michael Porter Generic competitive Strategy and BCG
Matrix
Michael Porter Generic competitive Strategy
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This strategy provides three main types of strategies that can be used by Captify for gaining
competitive advantage:
 Cost Leadership: Using this strategy Captify can focus upon becoming low cost product or
service provider in the industry. This will not only help them to gain competitive advantage
but will also help them in enhancing their market segment. They can provide discounts on
their most selling products or services like digital advertisement.
 Differentiation: they can focus upon providing unique products and services to their market
segment or can introduce unique features within their products like they can introduce
creative visual elements within their digital advertisements.
 Focus: they can either focus upon cost and gain cost advantage or can focus upon
differentiation in its target market segment.
Captify can focus upon providing their products and services like search intelligence,
advertise solutions and publisher solutions at lower cost to gain competitive advantage.
BCG Matrix
Captify can focus upon using BCG matrix for constructing their product padfolio so that they can
plan their growth strategy.
Star
High relative market share and high market
growth rate
Digital advertisement
Search intelligence- advertiser Suite
Question mark
Low relative market share and high market
growth rate
Search intelligence- data partner suite
Cash Cow
High relative market share and low market
growth rate
Advertise solution
Publisher Solution
Dog
Low relative market share and low market
growth rate
Not identifed
Critical evaluation of opportunities for growth, considering the risks
associated and how they may be alleviated
For explaining the risks associated with growth opportunities and ways in which it can be
migrated can be explained with the help of Ansoff’s matrix
3

Market penetration Risk level: This strategy has lowest risk associated with it.
But one of the main risks associated with this strategy is
lower profit margin because of provision of more discount
Ways to minimize risk: As pr the demand of the product and
service, Captify can provide discounts and offer like if
demand of a product is high then they can provide lower
discount for a fixed time period.
Market development Risk level: Risk associated with this strategy is medium. Risk
associated with this strategy is that the product or service
introduced in new market might not be a great success in the
chosen market.
Ways to minimize risk: they can conduct a business
environment analysis of the chosen market so that they can
understand need and requirement of product in the chosen
market
Product development Risk level: Risk associated with this strategy is medium. Risk
associated with this strategy is that technology chosen for
new product or service development might not be effective
and supportive
Ways to minimize risk: they can focus upon analysing
forecast accuracy of all the new technologies to be used so
that they can understand success rate of the chosen
technology and its supportively.
Diversification strategy Risk level: Risk associated with this strategy is high. Risk
associated with this strategy is that failure of introducing
required product and service to the new market segment that
can result in loss
Ways to minimize risk: For this they focus upon Cross-
subsidization for reducing risk of failure of introducing new
product in new market segment.
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REFERENCES
Books and Journals
Widodo, A.K., Mahachandra, M., Widhiyaningrum, M. and Tahqiqi, R., Formulating a Strategic
Management of Social E-Commerce through a Combination of SWOT and PESTLE
Analysis: Case Study.
Mohajan, H., 2017. An analysis on BCG Growth sharing matrix.
Loredana, E.M., 2017. The use of Ansoff matrix in the field of business. Annals-Economy
Series. 2. pp.141-149.
Bashir, M. and Verma, R., 2017. Why business model innovation is the new competitive
advantage. IUP Journal of Business Strategy, 14(1), p.7.
Online
Capitify. 2020. [Online]. Available through:<
https://www.crunchbase.com/organization/captify/technology>
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