Advaark
The best option for Advaark would be to diversify and take on the new business opportunity created by the marketing strategy industry. Over the years, Advaaark has built its reputation as a creative agency and has established good relationships with its clients. Its success in the producing creative advertisements allowed the company to grow into a mid size firm with over 400 people and an annual billing of 550 million dollars. The company prides itself on creative innovation and this is what it has always offered to its clients. While the company may be in a good position, it should take the opportunity to diversify into other markets such as business strategy as failure to do so could see the company fading out and failing to generate adequate revenue in the future.
At present, Advaark fits into the star category of the BCG Growth-Share matrix. The firm works with a skilled workforce that is very creative and effective when it comes to meeting the demand for creative advertising. As a result, the firm has benefited from high profits and high revenue. The company has a very strong market share not only because it is a dominant player in the creative advertising market but also because of the various barriers to market entry that exist in the creative advertising field. Although the firm has had a significant growth rate, a lot of capital has been incurred in providing services. However, the high revenue generated and profits made allow the firm to assert dominance in its market. While Advaark has the potential to rise to the cash cow category in the BCG growth-share matrix, such a move will only be achieved if the firm takes up the opportunity to diversify.
Evaluation of the business marketing strategy under the VRIO analysis suggests that the best move for the firm is to diversify as this would not only boost its strengths, it would also create more opportunities while at the same time eliminating threats and remedying weaknesses. The value for the marketing strategy market that Advaark ought to diversify into is estimated to be worth 1.3 billion dollars with an annual expected growth rate of not less than 16 percent. Since Advaark is already established as a creative agency, diversifying into business strategy will play to its strength as it already has related experience in the market. When it comes to rareness, various companies are offering marketing strategies to different clients. The number of companies offering the services may be a threat as they could increase the level of competition in the market. However, the service is rarely offered by advertising agencies and this presents an opportunity for Advaark to assert dominance as one of the few advertising firms offering business strategy to their clients. The service is also difficult to imitate and this makes it difficult for some organization to enter into the marketing strategy market. A challenge for Advaark will be felt in that it will have to hire new employees who are better equipped with the demands of running a business strategy arena. Another challenge will arise in the need for different appraisals and reward schemes to ensure that the company retains its employees. While creative advertising employees are generally easy to retain, more efforts will have to be implemented in the case of employees running the business strategy arena.
Another strength that the company could use is its organizational structure which will allow it to better use business marketing strategy to its advantage. Since the company already has loyal clients, business marketing strategy will allow Advaark to not only provide them with different services but also create the opportunity to attract new clients. However, Advark main weakness lies in the fact that it lacks the expertise needed to successfully venture or create new markets. Although this may be challenging, its success in creative advertising is proof that the company is capable of entering and dominating a market. The best move for Advaark will therefore be to diversify into the business strategy arena.
