Stick to the Core or Go For More Case Study Essay

Custom Student Mr. Teacher ENG 1001-04 16 May 2016

Stick to the Core or Go For More Case Study

Advaark, a highly successful New York based ad company, struggles with the decision on whether or not to grow their company by adding a new service. Advaark’s founders, Ian Rafferty and George Caldwell, quarrel over the decision to expand. Rafferty believes that expanding is an excellent opportunity, while Caldwell believes that adding a new service means the company will lose track of their original goals.

This analysis describes why Advaark should expand and explains how the company can address any problems that follow.

Advaark has a couple of good decisions that they could make. The company has been highly successful in the past by sticking to the strategy they developed on day one. It would be possible for them to do nothing and stay on the road they have chosen. Another solution would be to follow Rafferty’s idea and add a new service on to the company that consults with other companies on business strategies. Advaark’s best decision would be to add a new service.

The added service could provide many new connections with companies that would be interested in more ad campaigns in the future. Advaark would be able to recommend product ideas to companies and then have the ability to produce the ads for the new product. The new service would complement Adaark’s already successful ad service.

There are risks that come with adding a new service and adjustments they would need to make. Advaark would have to hire and train new employees for the service. Advaark could potentially alienate themselves from the strategy consultants who regularly refer clients to them. Advaark would be able to address these risks by growing into a larger company, adjusts the costs of services accordingly, and maintain good margins. Growing into a larger company would allow Advaark to be noticed by more clients who are looking for both advice and an ad campaign.

Rafferty researched the data on marketing strategy services market and came up with convincing results. Rafferty found that the market had an estimated value of $1.3 billion and had a projected growth of 16% annually for the next five years. The market was also composed of many different companies who specialize in different fields. There will be no better time than now to join the market. With the lack of competition, Aadvark should join the market now before it increases in size.

The temptation for increasing size can have some downfalls. Advaark must not succumb to the growth trap and continue to implement the strategies that made them successful in the first place. If Advaark can avoid the problems that come with increasing size, then they will reap the benefits providing two effective services. Advaark has found a fantastic opportunity that would be foolish to squander.

In summary, this analysis recommends that Advaark joins the marketing strategy services market by adding a new service to their already successful company. This analysis also recommends that Advaark stay true to their base line goals and strategies to avoid falling into a growth trap. By adding a new service, Aadvark will be able to join a budding market and continue to be successful in a market that they are already familiar with. Word Count 531; Passive sentences: 3%, Flesch-Kincaid: 10.4 ; “is”: 1; “are”: 3

Free Stick to the Core or Go For More Case Study Essay Sample


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  • University/College: University of California

  • Type of paper: Thesis/Dissertation Chapter

  • Date: 16 May 2016

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