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Case
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Reference no. BAB115
Published by: Babson College
Originally published in: 2003
Version: 27 February 2005

Abstract

The case and associated industry note describe a small (23 employees) and profitable advertising agency and the surrounding pattern of industry forces. The agency is interesting strategically because of its exclusive focus on high technology clients, and its distinctive organisational arrangements for serving its clients needs. Perhaps more important, however, is the culmination of a complex pattern of changes in the advertising industry itself. Reviewing the success and ultimate failure of this company over a long time frame illustrates the repeated need for creative transformation in an industry such as advertising. This case suggests a deeper lesson that each transformation should focus on, yet higher value interpretations of opportunities within the market segment. Each time the need was to differentiate more tightly with more refined and powerful concepts. This case and industry note are suitable for courses in strategic management, small business, service industries, and strategic marketing. It is primarily designed for the early part of such courses. The material is relatively distinctive, partly because of its focus on a small business, on a service (advertising) business, and on a regional industry. It is unusual, however, in the comprehensiveness of its perspective, embracing organisational and other issues within a large strategic management frame.
Industry:
Size:
Small business, 23 employees

About

Abstract

The case and associated industry note describe a small (23 employees) and profitable advertising agency and the surrounding pattern of industry forces. The agency is interesting strategically because of its exclusive focus on high technology clients, and its distinctive organisational arrangements for serving its clients needs. Perhaps more important, however, is the culmination of a complex pattern of changes in the advertising industry itself. Reviewing the success and ultimate failure of this company over a long time frame illustrates the repeated need for creative transformation in an industry such as advertising. This case suggests a deeper lesson that each transformation should focus on, yet higher value interpretations of opportunities within the market segment. Each time the need was to differentiate more tightly with more refined and powerful concepts. This case and industry note are suitable for courses in strategic management, small business, service industries, and strategic marketing. It is primarily designed for the early part of such courses. The material is relatively distinctive, partly because of its focus on a small business, on a service (advertising) business, and on a regional industry. It is unusual, however, in the comprehensiveness of its perspective, embracing organisational and other issues within a large strategic management frame.

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Industry:
Size:
Small business, 23 employees

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