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International Advertising Case analysis

International Advertising Case analysis - To Bill Smith Fm...

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To: Bill Smith Fm: RE: Dentsu Case Study Problem : Should Dentsu go global, and if so, how? Critical Factors : (1) Business situation: Japan 2 nd largest ad market; growth rate is stagnant. (2) Dentsu business situation: 90-95% of revenue and profits in Japan; defection of Nissan disturbing; international clients considered over transparency; major financial moves like building headquarters. (3) Past Dentsu Int’l efforts not successful: kick start global business failed; hook up with Havas and Y&R reduced to just Y&R in Asia only. (4) Inhibiting Factors: strong resistance of media driven BOD, media dominance business strategy and creativity is 2 nd as odds with most markets; handling of competitive brands acceptable in Japan, but not rest of the world. (5) Competitive situation: unprecedented concentration in agency business like Dentsu falling behind $1.8B vs. top 3 at $4+ billion; increasingly choice of MN clients; large holding companies seizing opportunity to buy Japanese agencies. (6) Buying Opportunities: Available agencies (Independents) include LB, MSC,
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