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Essay / WRSX Strategic Drift - 1388
Over the past two years, WRSX has changed its strategy, which has caused strategic drift. Additionally, by spotting new opportunities and receiving better information, WRSX modified its intended strategies that were already established in the strategic choices. The changes experienced by WRSX were made in order to increase the share price and boost the performance indices. The agreement not to expand into a new market was modified by collaboration with Asian SMEs. Furthermore, the company has moved away from the planned strategy of being multi-division and implementing the concept of matrix structure. At the first board meeting, the WRSX board decided not to take the market opportunity in China due to the planned strategy that was made in the strategic choices in order to create firstly, an effective local presence. Customer feedback suggests that it is too risky to develop a presence in the Chinese market. On the other hand, feedback suggests that not entering the Chinese market will result in missed business opportunities in the country and clients looking to create global campaigns there. At that time, the negative impact of entering the Chinese market could be felt in terms of financial and business risks. However, feedback suggests a positive impact on growth management, customer attraction and retention, and leadership capacity. The decision to create a cultural shift in New York, where WRSX already has an office, was made as a complement to maintaining the poor performance of the local agency in the United States. It can be concluded that due to the new information that has emerged, the WRSX strategy must be implemented. Emphasis was placed on the emerging strategy of focusing on market development and differentiation. Furthermore, at the board meeting, three paper points...... of market penetration could be implemented to encourage WRSX to increase its market share by first ensuring the maintenance of the current position, rather than striving to develop (Cole, 2003). In addition, Ansoff suggested some main directions that companies should follow to develop market and product conditions. Market development and differentiation strategies suggest that to increase sales, WRSX needs to offer its services in new developing markets such as China or India. Market development strategy provides the opportunity to expand their service in order to attract customers from competitors and expand into unreached markets (Barry, Witcher, and Chau, 2010). A potential solution could be the acquisition of a competing UK agency to help WRSX enter a new market more quickly and easily by overcoming barriers to entry such as government regulations and different cultures..