Saicki & Saatchi Case Study

In 1995, Saatchi & Saatchi was retitled the Cordiant Communications Group to handle the subsidiary of their businesses which was divided into two key groupings research and advertising. Along with creative excellence came rapid expansion to global leadership. This tracked the Saatchi brothers’ vision that successful agencies would be those that achieved global scale to match global clients with global brands. The vision played out across an ambitious acquisitions plan. Saatchi & Saatchi wasted no time in entering the public market to fund a string of deals embracing advertising, other marketing services and management consulting. It was an acquisition model that was both breathtaking in its aggression and entirely of its time: acquisitions

It was always their own team controlling the new subsidiaries in other nations so there was no gain achieved from synergy. Saatchi showed its primary interest in acquisition than creating a portfolio of investments. Saatchi and Saatchi is a company which has expanded into a number of businesses in which involves its relationship with a client’s marketing executives provided with a potential competitive advantage, marketing services, public relations, direct marketing and promotion firms, these above points clearly explain that company’s diversification was only related diversification holding client’s product marketing as the base operation. Saatchi involved its company’s core operations only in marketing and promoting process of its client’s products (M&C Saatchi PLC,

Actions taken towards acquiring other ad agencies explains the company’s corporate strategy is appropriate to its business environment. From the SWOT analysis it was recognized that company’s external threats were client product’s bad performance, to eliminate this threat the company has a opportunity to start new venture where they conduct a paid product testing process and later certify the product quality, by this process company can has opportunity to make more revenue and also eliminate the threat of false advertising. As already discussed above the company’s business revolves around related diversification in creating ads and marketing products, using all the existing resources company has a opportunity to diversify to enter media of reality shows, games shows, or even daily soups, where lot more revenue can be generated. When observed the company corporate strategy has not changed over the time, and maintained the business structure in horizontal integration, by holding single industry strategy and involving itself in the process of acquiring the competitors to achieve competitive advantage to gain huge size and scope of operations in different countries (Reference for Business,