Should the advertising firm pursue Mware as a client in IT and communications?

Marketing Report

The current endeavor analyzes the it&C industry in order to offer an answer to an organizational dilemma regarding a potential customer within a yet uncharted industry. Based on the analysis conducted, it is recommended that the firm created and sent an advertising proposal to Mware.

Mware is a highly reputable company in the it&C industry and it is rumored that the organization is unsatisfied with its current advertising company. It is as such expected that the firm requested proposals from other advertising agencies. Given this context, a question is being raised relative to whether or not this advertising company should complete and send a proposal to Mware.

The challenge in responding to this question is raised by the fact that the advertising company does not have any previous expertise within the it&C industry, in which Mware operates. This specifically means that in order to respond to the question, it is necessary to conduct an assessment of the industry. It is then the scope of this endeavor to assess the industry and formulate a final recommendation as to whether or not the firm should send a proposition to Mware.

3. Facts behind the problem

a) Aforementioned Trade Association information

The it industry is by far the most dynamic industry of the modern day society. Its presence and role within the contemporaneous community is continually increasing. It is as such no longer focused on communications, but it pertains to all fields of life, including politics, education, business operations, day-to-day activities and so on (Information Technology Industry Council, 2011).

b) Environmental scan

At this level of the analysis, it is important to assess the industry through five specific lenses -- social, economic, technological, competitive and regulatory.

Social

At a social level, a tendency is observed regarding the inclusion of it applications and products in more and more homes and daily operations. It is present in most professional and personal actions and its popularity is increasing even among the initially reticent populations, such as the senior citizens (Senior Journal). This specifically indicates that the industry would only come to play an even greater role within the society.

Economic

At an economic level, the it&C industry is a multi-billion dollar industry, continually attracting new players. The industry is nevertheless impacted by the state of the economy and the recent depression has taken a tool on the sales of the companies in the industry. The demand for the product is often generated by the "construction needs of companies and governments and the desire of industrial customers to improve the efficiency of operations. Profitability depends on the ability to accurately predict costs for a project" (Hoovers, 2011).

Technological

From a technological standpoint, the industry is extremely challenging in the meaning that developments are currently underway and the replacement of the existent technologies with newer and more efficient ones is a constant hurdle which generates additional expenditures. Nevertheless, if not completed, it would create competitive disadvantages.

Competitive

At the level of the competition, the leaders are difficult to identify and mention as a result of the complexity of the it industry. The most popular product of the industry is however the personal computer, and based on the sales of PCs, the leaders and their corresponding market shares in the United States are as follows:

Dell, with a market share of 17.1 per cent

Compaq, with a market share of 16.3 per cent

HP with a market share of 12.2%, and Gateway with a market share of 9.0%.

The rest of the PC manufacturers own small market shares, below 5 per cent each (Info Tech Trends, 2005).

Regulatory / political / legal

From a regulatory standpoint, it has to be noted that the legislations applicable in the field of it are continually developing and changing. This situation is pegged to the relative novelty of the sector, which makes it difficult to regulate as not all issues are clearly identified. Additionally, another element which creates legislative complexities is pegged to the outsourcing of several operations to more cost effective global regions. This then means that the organizational decisions have to simultaneously comply with the U.S. laws, the international laws and the laws in the destination state.

d) Background

The history of information technology is relatively unknown also as a result of the overall complexity of the industry. When assessed from the standpoint of its most notable representative -- the personal computer -- the history can be traced back to 3000 BC when the Chinese invented the Abacus. More recent developments commenced in 1642 when Blaise Pascal invented the first mechanical computing machine (Bangia, 2008). During the 1900 century, developments in computer usage escaladed and the devices came to be used in the military or in healthcare, with the state and the economic agents supporting the development of the industry. In the 1960s for instance, the use of computers in healthcare exploded as a result of the introduction of the Medicaid program (Niles, 2010).

e) Financial forecast

The first signs of recovery from the internationalized economic crisis are already obvious and this has materialized in an increase within the Information Technology and Communication industry. It is as such estimated that the following period witnessed an additional increase in the industry operations and revenues. "Over the next six months, it industry executives expect further strengthening of the U.S. economy, the it industry and their companies. The group forecasts an additional 6.5 point increase in confidence, moving the rating into a solidly positive range on the 100-point scale" (CIO Update, 2010).

f) Ethical issues

In a context in which the field of it is yet to be fully regulated, several ethical concerns can be identified. One for instance refers to intellectual property rights, which are continually infringed. It is unethical to steel intellectual property, but the practice is widely popular across the globe and insufficiently regulated (Broersma, 2003). Another ethical issue refers to the access of the overall population to specific content websites, such as pornography, which can be easily accessed by under-aged children.

4. Discussion

Based on the analysis conducted, the Information Technology and Communications industry emerges as a highly complex and challenging industry. On the other hand, it is also revealed as an increasingly omnipresent industry within the modern day society, and one which would continue to increase in importance.

5. Conclusion and recommendation

The Information Technology and Communication industry is extremely dynamic and it as such extremely channeling. Becoming involved in such an industry creates pressures and ongoing challenges. The firm will for instance have to develop a wide array of internal strategies in order to become better able to serve the it industry. It would for instance have to purchase newer technologies which allow the creation of more dynamic and appealing advertising campaigns. Additionally, the firm would have to hire and train more specialists in the field of it advertising. All these changes would imply additional costs and pressures for the organization.

But nevertheless, in spite of these challenges, the recommendation remains that of sending an advertising proposition to Mware and this recommendation is constructed on the numerous benefits of such a strategic move. First of all, the company would be presented with the opportunity to familiarize itself with the construction and airing of media campaigns for the it&C industry. In other words, it would use the experience to create additional know-how. This newly acquired knowledge would create new competitive advantages and would as such constitute points of difference in the competitive battle with other advertising agencies.

Then, if the firm comes to close a contract with Mware, it would benefit from increased revenues, which would in turn ensure that the investment in new it infrastructure and skill returns in an efficient manner. Furthermore, the money generated by the campaign to Mware would be used to ensure organizational profitability as well as to create funds for other investment projects.

Then, aside from the opportunities for financial gains and for organizational development, the construction of a campaign -- or at least a proposition -- for Mware would open doors to other companies in the it industry. Ultimately, the it industry is already a constant presence within the lives of the modern day individual and it is expected to become even more preponderant in the years to come. The advertising organization as such does not afford not to penetrate the industry. If the company continually declines opportunities to advertise in the Information Technology and Communications industry, it would soon come to operate in a niche sector in which its chances for not only development, but very survival, would be significantly restricted.

References:

Bangia, R., 2008, Computer fundamentals and information technology, Firewall Media

Broerrsma, M., 2003, Critics delay vote on EU intellectual property rights, ZD Net, http://www.zdnet.co.uk/news/regulation/2003/11/19/critics-delay-vote-on-eu-intellectual-property-law-39117998 / last accessed on March 11, 2011

Niles, N.J., 2010, Basics of the U.S. health care system, Jones & Bartlett Learning

2005, Market share, Info Tech Trends, http://www.infotechtrends.com/marketshare.htm last accessed on March 11, 2011

2010, 2010 it industry economic outlook looking up, CIO Update, http://www.cioupdate.com/research/article.php/3860826/2010-it-Industry-Economic-Outlook-Looking-Up.htm last accessed on March 11, 2011

2011, Microsoft Corporation, Hoovers, http://www.hoovers.com/company/Microsoft_Corporation/rcrtif-1.html last accessed on March 11, 2011

2011, Information Technology Industry Council, http://www.itic.org / last accessed on March 11, 2011

Internet growth driven by senior citizens, Senior Journal, http://seniorjournal.com/NEWS/SeniorStats/4-12-17SeniorsInternet.htm last accessed on March 11, 2011