Global Business and the Advertising Industry

This article discusses the impact of strategic management in the advertising industry. It covers topics such as environmental analysis, competition, and Porter's Five Forces. The article emphasizes the need for integrated entities and synergies between units to enhance competitive advantage.

Running head: GLOBAL BUSINESS AND THE ADVERTISING INDUSTRY
Global Business and the Advertising Industry
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1GLOBAL BUSINESS AND THE ADVERTISING INDUSTRY
In this growing era of competitive business, the strategic management is something,
where the processes of various management levels set this strategies and goals within an
organization, as it equips the organization with overall direction of various functional areas of
different departments of a company such as accounting, finance, production or marketing, which
gives management the opportunity to comprehend each of the operation levels’ concepts in the
entire organization (Hill, Jones & Schilling, 2014). Hence, it is the duty of the managers to make
sure that they bring out the best of each of the levels of operation in order to achieve the strength
and weaknesses in the business environment.
With the modern condition of affairs, the advertising industry needs to have a relook into
their models of strategic management to make sure that the strategies that are applied are
relevant as well as are capable enough to create a value for both the industry and the clients
(Rath & Bharadwaj, 2017). Hence, the industry players need to function more as the integrated
entities and bringing up together the operations of the other industry units I order to contribute to
the success of the organization.
The environmental analysis of the business is a strategic tool, which is used to identify
the internal and the external aspects that have an influence on the overall performance of the
respective organization (Bryson, 2018). It includes the assessment of the level of threats and
opportunities. It helps the organization to strategize its growth and increase its market share by
targeting new customers or by increasing the range of products and services that it offers or by
geographical expansion.
The advertising industry, with regard to this case, is very challenging. This is due to the
technological developments, the increase in customer spending in the developing economies, as

2GLOBAL BUSINESS AND THE ADVERTISING INDUSTRY
well as the compensations based on the results (Tukker & Tishchner, 2017). However, some of
the key tools that are being used in the in the environmental analysis of a business includes
SWOT, PESTLE and Porter’s Five Forces that analyses both the external as well as internal
business environments (Rothaermel, 2015).
The level of competition in the advertising industry is generally the highest. A good
advertising company will have its units widely spread across the compasses. However, not every
organization is seen to have limited capability in effective functioning. According to (), it would
be very helpful of the advertising industries share information across the offices for creating
synergies in between the units in order to enhance the success of the competitive advantage
regarding the economies of scale and the efficiency.
By making the use of Porter’s five Forces for determining the competitive behavior, the
advertising industry can access the requirements for handling the competitions from the internal
environment (Yunna & Yisheng, 2014). There is no legislative barrier for entering into the
advertising industry. The growth in the environmentally-friendly awareness for the advertising
companies has the potential for a better delivery of the environment friendly marketing and the
advertising. It decreases the threat of new entrants by increasing the loyalty of clients. Moreover,
the advertising industry has the bargaining power on the media planning and buying, as they
have an established infrastructure and are well-equipped with tons of talents. With the growth in
social media, the advertising or marketing companies too need to advance themselves in order to
grow and develop with the changing world. Advertising companies suppliers such as the
Facebook and Google are providing a large range of services like marketing, technology design
and strategy services through their channels to the potential customers. These online agencies are

3GLOBAL BUSINESS AND THE ADVERTISING INDUSTRY
continuously tapping on the increasing use of internet by the current generations to bypass the
former advertising agencies and sell their services directly to the consumers.
However, the advertising industry is a greatly differentiated service providing industry
and low differentiation is not a matter of concern for the advertising industry. From the present
condition of the industry, the autonomy grants independence of the medium to low high
companies, the opportunities to contribute to innovative as well as creative strategies. The
reputation of the conventional advertising industry has expanded up for the other stakeholders in
order to deduce in its potential, both financially as well as non-financially.

4GLOBAL BUSINESS AND THE ADVERTISING INDUSTRY
References:
Bryson, J. M. (2018). Strategic planning for public and nonprofit organizations: A guide to
strengthening and sustaining organizational achievement. John Wiley & Sons.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an
integrated approach. Cengage Learning.
Rath, P., & Bharadwaj, A. (2017). Communication Strategies for Corporate Leaders:
Implications for the Global Market. Taylor & Francis.
Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education.
Tukker, A., & Tischner, U. (Eds.). (2017). New business for old Europe: product-service
development, competitiveness and sustainability. Routledge.
Yunna, W., & Yisheng, Y. (2014). The competition situation analysis of shale gas industry in
China: Applying Porter’s five forces and scenario model. Renewable and Sustainable
Energy Reviews, 40, 798-805.