Advertising Industry Case Study

Introduction

The advertising industry is facing a lot of challenges in the recent years. According to the case study, I came up with the key strategic issues as following:

 Technology advancement is an opportunity as well as a threat to the advertising industry because it contributes to the decrease in the traditional advertising and also facilitates the development of new advertising channels.

 The shift in consumer behavior with the emergence of search companies becomes a threat to the traditional advertising companies.

 As the environment keeps changing, the critical success factor of the advertising companies is creativity.

Environmental analysis is important for developing a sustainable competitive advantage, identifying opportunities

It is concerned with what is happening politically in the environment such as tax policy, trade restrictions and reform, political stability, employment laws, environmental regulations and tariffs (CIPD, 2015). Changes in any of these affect the growth of the advertising industry. For instance, some countries have blocked major advertising channels such as Facebook and twitter due to political issues. Iran and North Korea are among the countries that do not allow the use of these social networks. This kind of political restriction affects the advertising industry since they are forced to use a specific channel, which may limit access to the consumers and affecting growth in the entire industry. A trade restriction means, for example, it is not allowed for advertising agencies to air advertisement to this particular countries or regions. Furthermore, a stable political environment acts as an opportunity for the industry because it facilities for a conducive business environment. Political instability is the major cause of insecurity and banning Facebook in North Korea, which makes it difficult to advertise through this social network and not willing to establish a business in these regions. This affects the growth of the advertising