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Huge and digital strategy-case - Essay Example

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HUGE: Becoming a Digital Uber Firm through Expanded Traditional Services Name University ANALYSIS The recommended strategic growth option is to extend offerings to traditional services, in order to support the company’s business strategy of being an “uber firm” and to leverage its competitive advantages, which are its management and staff expertise and organizational culture, and scarce resource of existing client and business-to-business relationships…
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Download file to see previous pages Retainer relationships can maintain these specific preferences of HUGE. 2. Long-term profits through long-term relations. Retainer relationships can result to long-term profits because clients can eventually see HUGE as a strategic partner for their overall growth. HUGE can reap greater revenues, if it becomes integral to their client’s strategic directions. Furthermore, long-term client relations can soon become a core competence. If these companies also grow, such as geographically and/or through offering new products and services, HUGE’s business will also grow with them. Their clients’ successes become intertwined with HUGE’s, thereby providing limitless opportunities for national and global growth. 3. Advancement of general view of the business as transformational and strategic. If HUGE is embedded into other companies in long-term retaining relations, companies might realize that digital marketing is not merely a reinforcement of traditional marketing efforts, but a superior marketing edge. Shapiro and his staff assert that: “…everything will be digital” (Casadesus-Masanell and Karvounis 7). ...
010 to 2016 2010 2013 2016 Social Media 988 2,760 4,995 E-Mail 1,328 1,875 2,468 Mobile 885 4,238 8,237 Display 9,347 16,085 27,600 Search 16,308 24,613 33,319 Source: Casadesus-Masanell and Karvounis (14) Disadvantages. 1. Demand for capabilities that are not part of HUGE’s core competencies. Despite the advantages of retainer relationships, HUGE does not have existing capabilities that long-term relations entail. For instance, retainer means engaging in traditional digital marketing activities, such as display advertising and search marketing. HUGE does not have the competencies yet for these marketing channels. 2. Not related to market expansion. Retainer relationships may extend revenues per client, but it does not automatically bring in new clients. It does not allow HUGE to tap new markets or to exploit existing ones. 3. Not supportive of business model. HUGE wants to be the one-stop digital marketing firm. If it caters to the same clients, it is not growing that much at all, unless the same market grows. HUGE is not opening itself to prevailing market demand for search and display marketing, in particular, which is a mounting marketing field opportunity. Geographic Expansion Advantages. 1. Taps new markets with the same transformative needs. HUGE can tap foreign markets that have similar transformative needs. It does not have to veer far away from its business practices because it can find large, challenging projects in other countries. Some of the potential locations are Japan, UK, Norway, and Denmark. These nations have high numbers of citizens who have bought something online and a large percentage of firms with websites (Casadesus-Masanell and Karvounis 19). 2. Expands markets in a geographical way. Geographic expansion can result to market expansion. ...Download file to see next pagesRead More
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