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Advertising Agency Analysis
lack of strategic plan;
many players (competitors) in the market;
the person is the center of this business = “our working tool is ourselves”;
new employees = risk;
pay for work.
Industry life cycle analysis
Industry – maturity stage:
competition for market share develops, driving down prices and producing a price war;
companies are forced to find ways how to increase efficiency, lower costs and to remain competitive in the market;
Company – growth stage:
room for the new customers;
customers are not familiar with all the services which the company is able to offer;
prices are not falling yet, as experience and scale economies are not attained yet;
distribution channels develop.
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