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Introduction
WRSX is a global advertisement company that was established following the merger of three advertisement companies including the WWMV based in London,
Silberstein based in USA as well as Roux Company from France. As such, it is one of those successful advertisement companies in the world due to the fact that it is a global company. However, it is essentially important for the company to instigate its global penetration vigorously. This paper seeks to discuss two strategic phases, including the strategic position as well as the strategic options available to the company for international growth.
Phase 1: Strategic Position and Choices
Strategic Position
According to the analysis conducted on WRSX Company, there are two critical aspects that are noticeable. First, the company is in a position where the cost of operation is very high. The high cost of operation is attributed to the expenditures directed to paying the wages. As such, the cost of labor is very high bearing in mind that the standards of labor are very high in USA, France and United Kingdom. The second, aspect that illustrates the position of the company is the fact that it has a high market share in Europe only (Canelley 2011. Importantly, the company has put very limited effort to penetrate the Asia and secure a sizeable market share.
Strategic Options Available
The company should consider directing most of its capital to setting up a center in Asia. Penetrating the Asian market is a crucial opportunity for this company to grow internationally. The opportunity is based on the fact that the Asian economy is oriented towards the manufacturing of products rather than actually marketing them. In addition, it has been noted that the Asian market has already been saturated with the products that are produced in the continent.
This being the case, it is important for the WRSX Company to shift substantial attention to the Asian community in order to increase its market share. In this case, it will be readily accepted by the Asian market since the manufacturers are very eager to win foreign customers bearing in mind their market is saturated. They should, therefore, look forward to providing digital, as well as the traditional advertisement media for countries such as Russia, Korea, Japan and China among others.
Phase 2: Strategic Directions and International Growth
Business Strategy
One of the business strategies that the company should adopt is cost reduction since the European market operates at very high cost of production. In principle, the core goal of a business is to maximize the profits and minimize costs without affecting business operations, as well as customers’ satisfaction. In this pursuit, the company should identify areas of operation where the cost of labor is relatively lower than the European economy. In particular, it should look forward to relocating its manufacturing bases to countries such as China and Russia. As a result, it will be able to have sufficient labor which is simultaneously cheap in order to reduce the cost of business operations.
Second, business should be aimed to exploit digital marketing technology which has taken root in the modern world. In essence, the world has shifted to the technological era where most of the business activities have been digitized and automated to ease the cost of doing business as well as increase the efficiency of making transactions (Chaffey 2010). In this scenario, it would be inappropriate for WRSX Company to ignore this paradigmatic shift in technology and continue using the traditional methods without incorporating the digital taste. As such, the company, this pursuit should be implemented strategically by convening a unit that concentrates on digital advertisement services. This unit will be mandated to innovate and come up with new ways of integrating technology with the old methods of advertisement. The unit will, therefore, devise a way of making smooth transition from the traditional advertisement to the automated ones in order to ensure they do not leave the clients behind or create a strategic gap.
Innovation and Entrepreneurship
According to the analysis conducted by the company, it was noted that the company research and development department in New York has failed tragically (Watson 2011). Additionally, there are many advertisement media that have emerged (Chelsea 2011). In that regard, therefore, it is crucial to make changes in order to ensure innovation and develop new services in the market. As such, the company should consider re-structuring its company employee order. In addition, they should hire new minds from the scholarly realm. This will provide an opportunity to get new ideas in their company. This can also be achieved by conducting an acquisition in order to bring employees with robust and valid ideas on board. The same effect can be obtained by merging the company with marketing companies in Asia where the career has not been exploited satisfactorily.
Conclusion
According to the analysis of the company present position, it is evident that the management should rise to the occasion and implement various strategies aimed to increase international growth. In that regard, this paper indicates that some of the pertinent ways of increasing international growth include securing a bigger market share in the Asian region, reducing the costs of operation as well as labor, and exploiting the digital marketing provision in order to increase profits in the modern technological world.
References
Canelley, A 2011, “WRSX External Environment Phase One”, Strategy Experience Simulation, pp. 1-5.
Chaffey, D 2010, “Applying Organizational capability models to assess the maturity of digital marketing governance”, Journal of Marketing Management, vol. 17, no. 6, pp. 187-196.
Chelsea, M 2011, “Advertising and Marketing Communications Industry Overview”, Learning Dynamics, Vol. 6, pp. 1-20.
Watson, T 2011, “Business Development”, Strategy Experience Simulation, pp. 1-2
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