Advaark Advertising Firm: Diversifying the Business

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Advaark advertising firm is a business organization that focuses mainly on the creative execution of ad campaigns. The company is well known for its ability to offer excellent services to its clients, enabling it to have a good reputation in the market. The agency helps other corporations create and develop adverts that they use to promote their businesses in the market. They used a cutting-edge advertising approach that made their campaigns more effective and efficient in enhancing clients’ products. Despite the services and trust Advaark built in the industry, it faced challenges from other well-developed organizations that were offering the same in the market. Most of its competitors had already started investing in different market sectors that had a significant market share in the country. The need for strategic advice has prompted the management of Advaark to consider a move into the new business platform that is having high growth rate probability in the market.

Analysis of Strategic Resources

Leadership Track Record

Leadership accounts for the success of any business organization in the market. A company that is well managed has the potential to maximize the available resources to its advantage. Advaark firm has visionary leaders who are not contented with their current situation. They explore possible ideas that would bring value to their organization. The aspect makes the leadership resource valuable for the company in the industry. The competency becomes rare because other advertising agencies cannot have such a level of management in their businesses (Amarakoon). Furthermore, leadership is not easy to imitate; therefore, players in the market will not be able to have the ability to act and manage their entities in a similar way as Advaark. Lastly, the organization is responsible for encouraging the good picture through delivering quality services to its clients. All these factors combined allow the Advaark advertising agency to have a sustainable competitive advantage in the industry. A leadership track record is a strategic resource that will enable the firm to remain attractive due to the ability of its managers to operate activities in a proper way that develops trust amongst the customers.

Premium Reputation

Reputation is an essential intangible resource that plays a significant role in influencing the success of the business operation. The advertising industry is full of many agencies providing advert campaigns to business corporations. To be at the top of the market, a firm has to create a trustworthy relationship with the clients by offering valuable services that promote their entity. Advaark enterprise has managed to develop an influential reputation in the industry through delivering creative ads to consumers. The approach has enabled it to retain most of its regular customers and attract other new clients. The attribute has made the company perform and become popular amongst its competitors in the competitive industry.

Advanced Technology

Advaark firm has developed technology that enables it to create sensational ad campaigns. The technical know-how adds the business organization value by making its advertisement more attractive to clients; thus, it is a valuable resource. In the industry, competitors have different levels of engineering, and they have the potential to upgrade their systems to a better level. This aspect makes technology to be a competitive parity in the market since it is easily attainable by the competitors. Furthermore, most of the advertising agencies in the industry have the potential to duplicate the techniques used in producing the adverts, but it will require them to invest more capital. This aspect makes technology resource offers the business a temporary competitive advantage.

Advaark SWOT Analysis

The SWOT analysis framework is an essential tool that allows management to properly understand internal factors that contribute to and influence the performance of the business. It entails deep insight into the strengths, weaknesses, opportunities, and threats that affect the business organization. Advaark firm has a number of forces that make it strong in the advertising industry. It also has a creative team of professionals that deliver excellent adverts (Hsu and Chen). In addition, the agency has adequate financial resources that facilitate the hiring of experts and other resources necessary for its productivity. Its weaknesses include limited human resources to venture into other business opportunities. It also faces poor understanding amongst the managers whereby they have conflicting opinions that slow decision-making. The manager also focuses on past failures, which hinders them from exploring possibilities. Advaark opportunity is to incorporate strategic consultation business in their firm. Lastly, the critical threats for the company include new entrants in the market. Currently, the advertising industry is experiencing a rise in other entities scrambling for market share.

Advaark’s Core Business

Based on the BCG checklist, Advaark’s core business belongs to the cash cow quadrant. Currently, the market of advertising is experiencing a reduced growth rate which makes it less valuable for other firms. Considering the reputation Advaark Corporation has in the industry, it has a high market share because most consumers value its services. Whether the company invests more in the business, it will receive relatively less income than the overall expenditure. Similarly, reducing its capital investment in the ads campaign will have consistent revenue flow because it has already established market share. In other words, Advaark will be receiving more income than the capital invested in the business. The position of the corporation in the industry allows it to spend less money to sustain its market growth.

In the future, the position of Advaark firm will change to the star. The need to diversify and invest in another market opportunity will prompt the organization’s management to venture into services with a high growth rate in the industry. For instance, the strategic consulting market has proven reliable for Advaark following the case of McWilliams’ advice about the Nirvoza brand. The outcome of the consultation made the manager consider venturing into the sector. When a firm invests in the star quadrant, they are guaranteed to make more profit, supposing they gain a competitive advantage. For Advaark, it has the potential of retaining the cash cow segment to provide it with a huge amount of capital required for the star.


Following the current trend in the advertising industry, Advaark should diversify its business operation in order to remain competitive in the industry and attract more clients. Most of its customers require strategic advice on their businesses; thus, making a move to offer such services will enable it to generate considerable revenue in the sector. Diversifying will expand the market share, therefore, creating more opportunities for growth and improvement.

Generally, investing in new markets will allow Advaark to have more opportunities to improve than remaining in one line of production. Advaark firm has a better reputation in the market, which will enable it to secure more customers. Its management team consists of a focused individual who has the adequate experience needed to take the business to another level. The company already has clients in need of its services in the market; this provides it with a solid ground to enter the market. Rafferty has an impressive track record of analyzing the potential of new investments. This gives the Advaark ability to examine the relevant data for proper decision making. Furthermore, it is better to enter the market before competitors because it will allow the firm to have more experience than new entrants. The projected increase in marketing strategy is massive, and thus the organization will be able to gain more from the industry.

In order to curb possible challenges Advaark might face in the new venture, the organization should hire expert consultants that will provide quality strategic advice to clients. Having such professionals will build more confidence for the firm and its customers as well. In addition, the business organization should continue offering creative campaign ads to retain its reputation, thus will make clients have less doubt about its services.

In summary, Advaark advertising firm has developed effective trust in the industry following its efficient services. The management should consider diversifying the business to enable it to remain competitive in the industry. Leadership records, reputation, and advanced technology make a significant part of the firm’s resources that facilitate its performance in the market. Entering a new market before its competitors will allow the company to have exposure, thus staying ahead of the competition.

Works Cited

Amarakoon, Upamali, Jay Weerawardena, and Martie-Louise Verreynne. “Learning capabilities, human resource management innovation and competitive advantage.” The International Journal of Human Resource Management 29.10 (2018): 1736-1766.

Hsu, Bo-Xiang, and Yi-Min Chen. “Industrial policy, social capital, human capital, and firm-level competitive advantage.” International Entrepreneurship and Management Journal 15.3 (2019): 883-903.


Appendix A

SWOT Analysis

  1. Advanced technology
  2. Creative employees
  1. Delayed decision making
  2. Limited resources
  3. Focusing in past failures
  1. Investing in marketing strategy market
  2. Hiring consultants
  1. New entrants

Appendix B

BCG Checklist
BCG Checklist

Industry Growth Rate

  1. Causes high demand of services in the market.
  2. Requires high capital investment.

Relative Market Share

  1. Increases economies of scale.
  2. Improved production experience.
  3. Leading to cost advantage.

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