| Organizations are increasingly challenged to respond effectively to competitive threats and changing marketplace conditions. In the United States advertising agency sector, competitive forces and industry dynamics affect a firm's performance. The problem is that a gap in literature exists regarding identifiable factors that might decrease competitive uncertainty of ad agencies that compete against numerous rivals in a geographical area. A qualitative, embedded multiple case study design was utilized to provide in-depth understanding of participants' perceptions regarding optimal strategic management approaches that ad agency leaders could use to decrease competitive uncertainty of agencies that compete against numerous rivals in a geographic area. Currently accepted theoretical models of competition and quality were utilized, including Porter's Five Forces Model of Competition, the Model of Competitive Rivalry, and the Deming Cycle. Results of this case study contribute to competitive response literature by examining the perspectives of 21 mid-level and upper-level leaders who work in sales and account management positions at 16 different advertising agencies in the Denver, Colorado area. Sales professionals were interviewed because these individuals are typically knowledgeable of competitors' actions and have responsibilities for generating revenue and building client relationships. Participants who work in account management positions were interviewed because account managers are typically knowledgeable about agency competitors and have responsibilities for managing client relations. To ensure accuracy of findings, interview results were recorded and documented. Key themes emerged from this study that suggested agency leaders should differentiate the agency from competitors and build strong agency-client relations. Other themes indicated agency leaders should develop supportive workplace cultures and organizational structures that foster open communication, idea sharing, collaboration, and employee empowerment. Recommendations for practice include assessments in areas such as (a) organizational competencies, (b) human resources, (c) competitive intelligence, (d) communications, (e) workplace culture, and (f) leadership approaches. Recommendations for future studies include (a) examining factors that influence ad agency-stakeholder relations, (b) national and international studies on agency competitiveness, (c) research on how agencies' functional departments influence competitiveness, and (d) correlation studies to examine how organizational change initiatives affect agency competitiveness. |
