The Research On The Development Of Advertising Enterprises Based On Strategic Transition

Since1979when Chinese advertising market reopened, the expansion of industrial scale, as well as the advertising professional services capabilities increased significantly. However, the situation that Chinese advertising industry is highly fragmented and considerably weak still remains a problem, while the development of Chinese local advertising company presents a low concentration and Pan-specialized features.After December10th2005, the advertising market was fully open to foreign investments. Multinational advertising groups had a rapid expansion in the Chinese market. With the background of national autonomous economic development as well as of economic and social development of China, whether new-born local advertising companies are capable of withstanding the impact of multinational advertising groups has been a controversial issue of public concern.There are two major trends faced by the global advertising industry:Firstly, the transition from the advertising communication era to the integrated marketing communications era. The second is changes happened from traditional media to digital media. From Chinese economical construction, China has begun to shift from manufacturing industries to cultural and creative industries. Chinese advertising industry began to shift from the low concentration era to intensive development era. Especially, since2009, China promulgated the "Cultural Industry Promotion Plan" since the cultural industry has become the country’s strategic industries.INTERCOM INT’L, an international advertising company in China as well as China Advertising Association vice president-level units, the first member of China4A advertising and governing units and Chinese advertising company10companies, provides full-text advertising consultant based brand communications agency. As a typical representative of Chinese local advertising company, from the initial exchange of international media agency gradually became the comprehensive advertising agency, although its business is constantly changing, but in the background with which a rapidly changing market, INTERCOM INT’L still failed to meets the demands of integrated marketing needs of the times. Therefore, the INTERCOM INT’L began to focus on strategic business transformation.Typical as INTERCOM INT’L a media agency, the business of the company has made some shift to meet the demand of the times, but it still failed to respond well to the needs of integrated marketing era. Therefore, INTERCOM INT’L sought to focus on strategic business transformation. Doing research of the shift made by INTERCOM INT’L is beneficial not only to INTERCOM INT’L itself, but also to the Chinese advertising enterprises as all companies in today’s world ought to deal with the same problems that how to make changes to meet the expanding need of people in this age.The first issue discussed in this paper, why should INTERCOM INT’L which has still become the representative of local advertising company make the exchange of strategic transformation? The author of INTERCOM INT’L analyzed the environment of advertising industry, as well as re-examined INTERCOM INT’L’s developing strategy. From the advertising industry in terms of the environment, the rapid changes occur the environment which concern with the advertising industry. The rapid advancement of technology, not only changed the lives of consumers and consumption habits, but also adjusting the economic structure of the industry, which affected advertising industry considerably. From INTERCOM INT’L itself, it is a typical advertising agency company; its essence remains the agency model. In the era of integrated marketing communications, this simple mode only remains at the end of the market, but also is difficult to form the core advantages. Therefore, only by strategic restructuring can the company having its core advantages and developing from the bottom of the market to the top.This paper talked about the second question that how to conduct strategic transformation path selection. INTERCOM INT’L makes its strategic transformation possible from two directions. Firstly, from the perspective of the service model, to achieve the transformation from simple information service advertising agency to the information services industry. Model transformation is the highest level of service advertisement strategic transformation. After the transformation of service mode, the advertising companies shift its positions and roles to play a more important role in economic activities. Advertising company will enhance its position as strategic partner advertisers to truly participate in the media or the advertiser’s strategic decisions and marketing decisions, which will surely enhance their competitiveness. Second, make connection with cultural and creative industries based on the background of Chinese cultural industry development. As "newly development services", the cultural and creative industries have inestimable prospects, which will become one of the pillar industries in China. Moreover, the advertising industry, accounting for a large proportion of the total size of the cultural and creative industries, will definitely become an indispensable part. As for the choice of the strategic transformation, INTERCOM INT’L ought to base on its present situation, keep its existing traditional business, which includes advertising planning, creative and performance, advertising design, etc. All these are core business of advertising companies, which determines the transformation process even harder as the core businesses should be kept as stable as usual.Secondly, concerning with the process of INTERCOM INT’L’s transformation in the future, it should adapt to changes in the propagation environment. It is also necessary to provide services for macro-planning and strategy for end of the market. As a result, those strategies will make the business subject change to integrated marketing communications services and companies shift from traditional agency to cultural creative industries, which determines the international exchange should choose leaps transformation.The third issue discussed is that how INTERCOM INT’L makes transition in the cultural industries. First, the author talked about the opportunities enjoyed by INTERCOM INT’L in the field of cultural industries. Second, the author discussed the experienced shared by domestic and international communications groups. Moreover, the author tried to analyze whether they are available to INTERCOM INT’L. Finally, international exchange and development by transformation were conceived.I hope that by doing research on international development of INTERCOM INT’L, the result will provide a theoretical basis for the future development of China’s advertising industry, as well as a paradigm for many advertising companies in transition mode.