Strategic Management Theory Integrated Approach System

Question: Discuss about the Strategic Management Theory for Integrated Approach System. Answer: Introduction: Advertisement industry is undergoing tremendous transformation in the recent years(Hill, 2014). Especially the media used in advertisements have been rapidly transformed from television, radios, banners, posters to social media advertisements. The type and format of advertisements have also got rapidly transformed in the recent years and aggressive in nature. Owing to the tough challenges posed by globalization advertisement agencies often have to design multiple advertisement to cater to diversified range of customers. Thus, such agencies need to attend to diversity issues while designing their advertisements. Companies that are accomplishing and changing themselves are existing and companies who are not transforming themselves are not being able to exists in business. Forces positive or negative for major Advertising Agencies There are multiple forces especially from competitors that is currently influencing the advertisement industry(Freeman, 2010). Forces from competitors and industry rivals are putting extreme pressures on industry participants which can be understood by Porters Five Force Analysis. Industry Rivalry: High due to globalization and presence of large number of advertisement agencies. Bargaining Power of buyers: High due to presence of large number of agencies. Bargaining power of suppliers: Low Threat from new entrant: Medium due to high cost of entry. Threat of substitutes: Low Advertising agencies due to globalization are faced with challenges pertaining to costs where major large advertisement companies need to scale down. There are also challenges pertaining to ethical standards that advertising companies need to maintain. Ethical standards in each and every country are different hence while designing of advertisement campaigns companies need to cater to such norms. The sensor boards of different countries need to pass such advertisements. Hence, thee forces acts as factors negative governing the industry. They act in favor of those wanting to adhere to ethical norms of conduct. References Freeman, R.E., 2010.Strategic management: A stakeholder approach. Cambridge University Press. Hill, C.W., Jones, G.R. and Schilling, M.A., 2014.Strategic management: theory: an integrated approach. Cengage Learning. in.pinterest.com, Retrieved on 30th March 2017. Porter's Five Forces Analysis. https://in.pinterest.com/helmynoor/porters-five-analysis/.