I think Advaark has been a highly successful company situated in New York. It is, however, recommended that the company should add a new service to the core business but should not indulge itself in extraordinarily expanding its services, which could add additional pressure. Addition, of new service, will not only diversify operation, but also it will yield new opportunities, both intra-industry and market. The recommendation has been made in the result of analysis of capabilities and SWOT analysis of the company (Waite).
BCG Growth-Share Matrix
The company is probably the most innovative company in the advertising industry, and its core business is growing at a rapid pace. In this context, the company falls under the star category in the BCG Growth and Share matrix because the growth rate and market share of the company are increasing. It is also near to the Cash Cows stage because it has sufficient capital at hand and innovation is required in the company to sustain its growth and market share.
Specific Resource and Capabilities of the Company
The company is known for its excellent capabilities of providing brand new services in the area of advertising, and the company has produced some memorable and very creative ads in recent times. This capability of the company has triggered the discussion between Rafferty and Caldwell in this case. Rafferty wants to add more services to the company’s core business while Caldwell is satisfied and interested in keeping the strength with the company. It means that the company is at a crossroads to choose one option, i.e., to stick to the core strength and capability or add a new service (Waite).
Swot Analysis
The company has a proud history, and the accounts of its success are numerous, primarily because of its impeccable business strategy. It could be very risky to change the strategy as the strategy has given good results to the company in the past and still, the company has been yielding benefits due to it. However, there is the fact that a company should keep evolving to be in the business.
One of the weaknesses of the company is the strength of strategy (strength became weakness). Rafferty has advised adding a new service, while Caldwell suggests adding a service as a risky move. The company is an innovative entity but if it does not introduce innovative products in the future then there will be problems with it.
However, the marketing strategy services in the US are estimated to grow in the future. Currently, the market was valued at $1.3 billion, and it was expected to grow at 16 percent in future. It is an opportunity for the company to grab the chance to be more growth-oriented with innovative solutions.
There are threats for the company as it has successfully implemented an existing strategy and this strategy has worked. If it ignores its strength and goes with the expansion move, then it can face problems in the future (Waite).
Recommendations
The review recommends that the company should go with the adoption of a new marketing service, as it increases prospects multiple folds. Moreover, adding a new marketing strategy service would be aligned with the existing business of the company, and it would neutralize threats and weaknesses of the company. Threats and weaknesses might be there due to lack of innovations and the adoption of a new service would open new prospects for the company. Moreover, it would help the capabilities and resources of the company to be strengthened, and as a result, the strong points of the company would increase very much. However, it is also recommended that the company should not be trapped in expansion other than an addition to this service.
Work Cited
Waite, Thomas J. “Stick to the Core—or Go for More?” Harvard Busienss Review. Harvard Busienss Review, February 2002. Web. 25 October 2017. https://hbr.org/2002/02/stick-to-the-core-or-go-for-more.
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