It's very interesting to read about how the companies combined under one label which is WPP Group Plc and compete among themselves. WPP consists of 125 communications companies. Of course, there will be chaos when WPP's firm compete intensely with one another in every aspects. But it's a good chaos,thou since they emerge remarkable results which is in 2007,reported that WPP gain profit of $1.4 billion on revenue of $12.3 billion, up 8% in constant currencies.
Is it a suicide approach taken by the COC of WPP Group, Sir Martin Sorrell?We can see the operation method here is by joining many big companies,in same industry and have different benefits together and let them compete each other. As the result, they became very competitive and outstanding group.
For example, Unilever's account itself is handled by not fewer than 47 WPP's firm from GroupM to OgilvyOne Worldwide. There is a competitor says that Sorrel consolidation of the industry in the 1980's changed the nature of bussiness.Clients can go to WPP and pick services from A,D,E,J and Z.Now, it make sense,right? It's another a remarkable moved made by Sorrell when the time to pitch multinationals looking for economies of scale and help in global brand building, Sorrell does a 180's degree turn and demand his independent firms come in for the kiss. Seems that in-house rivals suddenly turn collegial and pool their expertise and services for a knockout bid.
Now i see why a British Trade magazine once wrote, "Never confuse this extraordinary man with a normal, well adjusted person". So,do you all think this is the best business model for a fragmented market?You tell me~
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