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HUGE and Digital Strategy
Transcript of HUGE and Digital Strategy
Discussion Question #2
What is HUGE's Primary Competitive Advantage?
What is HUGE's Growth Strategy - Sustainable?
How Important is Growth for HUGE?
Discussion Question #3
Evaluate HUGE's Current Strategy as of March 2011. Use VRIO Analysis to Support Your Evaluation.
Discussion Question #4
What Strategic Growth Option Should HUGE Pursue?
HUGE is a Fast-Growing Full Service Agency that is Poised to Break Through Market Boundaries While Maintaining their Corporate Structure and Mission.
Discussion Question #1
How would you assess the attractiveness of the digital marketing industry through Michael Porter’s five-force analysis?
Porter's Five Forces
An Introduction to
Threat of New Entrants:
- Very Low Barriers for Entry
- Diversity of Existing Competition
- High Power due to Comparable Options/Substitutes
- Buyers Able to Solicit Multiple Offers
- A Wide-Variety of Comparable Substitutes Available in the Market
- Agile Competitors Continue to Add Capabilities
- Low Supplier Power
- Brand Loyalty Diminishing
- Companies Will Compete on Price, Quality, and Niche Designs
Threat of Substitutes:
- Balance of Power
- Diversity of Competitors
- Traditional, Digital Design, CRM, IT, Niche, etc.
- Pressure on Decision Makers
- CMO (Chief Marketing Officer) is known as the "Most Treacherous Job in Corporate America"
- Average Tenure of CMO Position Declining
HUGE's Primary Competitive Advantage:
- Flat Organizational Structure
- Entrepreneurial Spirit
- Strong Focus on User Experience
HUGE's Growth Strategy:
- Provide for a "One-Stop-Shop" for Clients
How Important is Growth?
- Growth is Absolutely Crucial in the Highly Competitive, Fluid, Digital Marketing Industry
Organized to Capture Value?
Temporary Competitive Advantage
Costly to Imitate?
Sustained Competitive Advantage?
If Not, What Can Be Improved?
If So, What Should Be Maintained?
Pursuing a Strategy of Geographic Expansion
- Allows HUGE to Remain True to Brand
- Increases the Ability to Compete with Other Global Firms