This paper analyses the use of global strategies by intemational advertising agencies. 1t uses Yip’s (1989, 1992) conceptualization of global strategy as a multi-dimensional construct composed of a number of elements which he termed ' global levers'. The paper examines each of these levers in turn seeking to uncover which components of global strategy are being adopted and how are they being implemented by the agencies.
This paper supplements a previous working paper in this same series. 1n that paper the extant literature regarding theories and definitions of globalisation and global strategy was examined. The terms were clearly defined for the purpose of this study. Additionally Yip’s ‘framework for global strategy’s was introduced and the methodology of the overall study was presented. 1n the previous paper the forces pushing globalisation (in Yip’s terminology the 'global drivers') facing the advertising industry were identified. It was suggested that market drivers were the predominant force impacting the industry and cost, government and competitive drivers had a limited inf1uence.
1n this paper the anticipated effect of the global drivers facing the advertising industry are presented. A number of propositions are developed regarding the expects the use of each of the 'global levers'. Based on interviews with senior executives in the international advertising agencies the actual use of each globallaver is then discussed. The anticipated and actual results are then compared and conclusions drawn regarding the efficacy of Yip’s framework as a predictive modal.
Three distinct 'typologies' of agency emerge, each following a differing overall approach in response to the industry globalisation drivers. It is suggested that the reason for the alternate strategic approaches is related largely to the administrative heritage of each organization. The paper concludes by suggesting areas for further research.
Whitla, P. (2002). Globalisation in advertising II: Use of global strategies by international advertising agencies (HKIBS Working Paper Series 047-012). Retrieved from Lingnan University website: http://commons.ln.edu.hk/hkibswp/90