WPP Group SWOT Analysis Sample UK

Parent Company: WPP Public Limited Company

Category: British multinational advertising and public relations

Sector: Media & Entertainment

Tagline/ Slogan: A world leader in marketing communications

USP: World’s largest advertising company by revenues

Founded : 1985

WPP Group is a British multinational advertising and public relations company that was founded in 1985 by Sir Martin Sorrell. The company has more than 200,000 employees across the globe and is considered to be one of the world’s largest advertising companies. WPP specializes in providing marketing communications services such as public relations, branding, creative, media buying, events management, market research, and digital marketing to a wide range of businesses and organizations.

The Wpp Plc is a world leading company in its industry. The firm maintains its prominent position by critically analyzing and reviewing the SWOT analysis, which requires effective coordination across various departments within their organization such as marketing finance operations management information systems strategic planning

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WPP Group Strengths

  1. Strong Brand Portfolio : WPP Group is one of the largest global communications companies, with over 190,000 employees and annual revenues of over $19 billion.
  2. Diversified geographical presence: The company operates in 112 countries and has a strong presence in all the major markets.
  3. Strong relationships with clients: WPP has strong relationships with some of the world’s largest companies including Coca-Cola, Ford, IBM, and Microsoft.
  4. Highly skilled workforce: WPP employs a large number of highly skilled professionals includingcreatives, media planners, and market researchers.
  5. Award-winning work: WPP has won numerous awards for its creative work, including over 150 Cannes Lions and 5 D&AD Black Pencils.

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WPP Group Weaknesses

  1. Dependence on a few large clients: WPP is heavily dependent on a few large clients for its revenues. In 2016, the top 10 clients accounted for around 27% of the company’s revenues.
  2. Conflict with other holding companies: WPP has been in conflict with other holding companies, such as Omnicom and Publicis, over the years.
  3. Slow growth in North America: WPP has been struggling to grow its business in North America, which is its largest market. In the first half of 2017, the company’s revenues in North America grew by just 0.4%.
  4. Brexit: WPP has been adversely affected by Brexit, with the company’s stock price falling by around 20% since the vote to leave the European Union.
  5. WPP is facing increased competition from consultancies: WPP is facing increased competition from the likes of Accenture and Deloitte, which are expanding into the marketing and advertising space.

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WPP Group Opportunities

  1. Growing demand for digital marketing: There is a growing demand for digital marketing services, as companies shift their budgets away from traditional forms of advertising.
  2. Emerging markets: WPP is well-positioned to benefit from the growth of emerging markets, such as China and India.
  3. Acquisition opportunities: WPP has been on an acquisition spree in recent years, with the company acquiring a number of digital marketing and advertising firms.
  4. Increase in ad spending: Global ad spending is expected to increase in the coming years, which will benefit WPP.
  5. New initiatives: WPP has launched a number of new initiatives, such as its “Creative Future” program, which is designed to help young people enter the creative industries.

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WPP Group Threats

  1. Economic slowdown: A global economic slowdown could lead to a reduction in ad spending, which would hurt WPP.
  2. Political uncertainty: Political uncertainty, such as the Brexit negotiations, could lead to a reduction in ad spending.
  3. Technology: The rise of new technologies, such as programmatic advertising, could threaten WPP’s traditional business model.
  4. Regulation: Increasing regulation, such as the introduction of the GDPR in the EU, could pose a challenge for WPP.
  5. Competition: WPP faces stiff competition from other holding companies, as well as consultancies and tech firms.

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