Human and innovation resources
While technology has been on the forefronts of the business, creativity still remains with the company’s human resources. Of the three things- Strategic thinking, creative execution and coordination; creative execution is undoubtedly the most important that means creativity in its broadest sense. A work force of 92,000 ensures meeting one and all challenges. As companies grow in size, they tend to become bureaucratic and slow to respond. Size and scale has its advantages.
Using innovative new technologies, WPP has ensured advantages of big size without sacrificing the suppleness and energy of a smaller firm. To boost the capabilities of its human resources, WPP has training and development programs and various incentive schemes to attract the best of the talent and retain that. Capabilities: WPP is capable of serving clients across globe in different market segments with a host of services like advertising, research, media, PR and marketing.
As clients face an increasingly undifferentiated market place, particularly in mature markets, the Group is competitively well positioned to offer them the creativity the desire, along with the most coordinated communication in the most efficient manner. As already said the group services over 300 of the Fortune 500 companies, over one half of the Nasdaq 100, over 30 of the Fortune e-50 and approximately 390 national and multinational clients in three or more disciplines. Nearly 220 clients work with WPP in six or more countries. With revenue of over $10000 million, the group is second largest conglomerate in the industry.
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The Group operates in the United Kingdom, North America, Continental Europe, Asia Pacific, Latin America, Africa and Middle East. Core competencies of WPP: WPP’s principal activity is providing communications services worldwide. Globally it operates through its four operating segments: • Advertising and Media • Investment Management Information, Insight & Consultancy • Public Relations & Public Affairs and • Branding & Identity, Healthcare & Specialist Communications • Healthcare Communications • Direct Promotions & Relationship marketing • Specialist Communications
Operating in an industry having perfect competition among companies, WPP has reached second position in industry in just two decades through own entrepreneur ventures and through acquisitions. Key success factors Among key success factors of the company, Creative human resources are single most important factor that distinguishes WPP from its competitors. In today’s competitive environment, clients seek to build brands through creative advertising. With a huge talent pool available at its disposal, WPP takes a clear edge over its most competitors.
Financial strength and global reach are other important factors leading to outstanding success of the company. Experienced and aggressive management at the helm with creative execution at the lower rungs supported by innovation and technology complete the picture. Value chain analysis At first glance, one might consider that two different and quite distinct industries constitute the advertising industry: advertising and media. Looking more closely at the industry, one can see that media and marketing companies had mainly driven the emergence of advertising.
To analyze the advertising market, it is necessary to understand who the key players are. The main players in the advertising value chain are the advertisers, the advertising companies, the media owners, the new technology advertising agencies, the media owners / carriers, the technology providers and the customers. The advertisers are the one of the most important players in this value chain. The revenue that flows through the value chain is based mainly on payments that the advertisers make to the advertising companies for implementation of the advertising campaign.
Advertising industry is focused on generating revenues from commissions and fees paid by advertisers. Media owners play an important role in this value chain. Modern and innovate technology provides glue to the value chain.
THE 5Cs: CONTENT, CROSS-MEDIA MARKETING, CAMPAIGN MANAGEMENT, CUSTOMER DATABASE, and CARRIER COOPERATION The basic idea of the 5C model shown in above figure is that each C adds value in advertising value chain. The 5C model provides a management tool that helps advertising players to build up a value chain that form a full business scenario.
Firstly, content is a key factor in creating an advertising service that attracts the users and keeps them coming back Secondly, cross-media marketing refers to the idea that advertising is not to be left on just one media when there are so many of them available. Single media does not work alone but it needs other media in order to thrive Thirdly, campaign management refers to the idea that advertising technology that enables campaign execution and analyzing is one of the main success factors in advertising
Fourthly, customer database refers to available database of respondents to various market researches. For example WPP can interrogate more than 17 million consumers globally and can deliver answers with in 24 hours Fifthly, carrier cooperation refers the idea that carriers / media operators have expertise and knowledge of their media reach and effectiveness for different slots. Advertising companies should partner media operators to deliver effective advertising to their customers.