Phrase one. Analyzing the strategic position
In this stage, is analyzing the strategic position of WRSX Group.
By using the PESTEL framework we can analyse the many different factors in a firm’s macro environment. PESTEL analysis is a useful tool for understanding the “big picture” of the environment, in which you are operating, and the opportunities and threats that lie within it. By understanding the environment in which you operate (external to your company or department), you can take advantage of the opportunities and minimize the threats. (Ghemawat, 2008). The Five Force frameworks will response to the industry analysis. Five Forces is a framework for industry analysis and business strategy development. It is consisted of five key factors; entry barriers, buyer power, supplier power, substitute competitions and industry competitor. (Johnson and Scholes, 2009) The SWOT is useful when we are analyzing the internal environment of WRSX Group. It is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats. (Strengths: characteristics of the business or team that give it an advantage over others in the industry. Weaknesses: are characteristics that place the firm at a disadvantage relative to others. Opportunities: external chances to make greater sales or profits in the environment. Threats: external elements in the environment that could cause trouble for the business). (David, 1995)
For the current situation of whole industry of advertising, it is under high level competition. A considerable numbers of agencies live in this industry. The range of their scale is quite widely, it covers large international agencies to small local business firm even only two people involved. Meanwhile, lots of business opportunities in advertising. Under the whole world economic is increasing background, firms are comfortable to put budget on advertise part. Generally speaking, the advertising industry is trend to...