Sustainable Competitive Advantage Analysis Essay Example

For WPP, China meets all the criteria, which are considered important with an objective of deriving sustainable competitive advantage. From short-term point of view, 2008 Olympic games present a great opportunity to companies to showcase their brands and create an association of their brands with Chinese masses. WPP can rake in big money during these campaigns.From long term point of view, a fast growing market with a good double digit growth rate, a burgeoning economy with a consistent growth rate of over 9%, political motivation, opening up of a virgin market and a consumer base of over 1 billion makes it a mouth watering proposition for marketers.

• Chinese market is valuable to WPP
• Its unique considering size of the market and volumes
• WPP had some holding in some companies in China, with changed laws; it has now acquired those companies and
  ...

  added more to the list. Sheer volume of business offsets cost of entry.

• Any other market can never compensate the loss of this opportunity.
• The returns are above average as already depicted by the revenue figures.

Hence China is the single most important key factor not just for WPP but in coming years, it is going to change the matrices of the industry.

Strategic Options Analysis Evaluation

WPP already has a sizeable market presence in China through group companies, therefore issue of coming up with a new company for China is a non-starter. Further, tapping different niche markets becomes difficult within same company. That implies opening up more than one company.

Starting more than one company from scratch in a new territory is never a good strategy. Equity participation in China ensures WPP’s presence but doesn’t provide i