Blog 2: The digital opportunities and challenges in Wire and Plastic Products (WPP) plc

With the use of digital tools developing in worldwide business, the requirement of using digital tools and address the opportunities and challenges happened in digital and physical location properly is a big question for all companies which want to survive or expand in the more and more rely on the digital tools’ world. For both traditional physical business organisation and new operating digital business companies, a good identification of opportunities and challenges presented by operating in both digital and physical locations will help them to address these chances and challenges and expanding in both digital and physical area better. Digital transformation, is not at all an easy undertaking for organizations, whether big or small. There are a number of digital challenges facing businesses as they attempt to change the way they do business,like enhancing customer experience, engagement of employees, handling competition.

Operating business in both digital and physical location could provide more market to organisations, also a good chance for clients to know the products. For instance, advertising in both underground and some daily use smart phone app or website is the most efficient way to make the brand or product to be well known. So this blog will use the Wire and Plastic Products (WPP) plc as an example to the straight the topic question.

WPP plc is one of the worlds largest to communications services groups which operated in 1971. It is made up of leading companies in: Advertising; Media investment management; Information, insight & consultancy; Public relations & public affairs; Branding & identity and Healthcare and Specialist communications. The traditional way to do advertising is put advertisements on local newspaper or any other physical things, it let local residents get more information about the local companies brand, help local organisations to get more local market. But the obvious problem also showed in this period, it is not easily for the customers to finding overseas products, because the advertisement companies are also locally, even some trading companies want to expanding overseas market, it is not convenient to communicate with local advertising companies. Especially after entering the 21 century, the amount of cross-border trading increased dramatically, the need of advertising world wild also increased.

With the processing of the digital using, people are more likely to use digital tools rather than physical stuffs, like website V.S. newspaper. The famous American newspaper company Tribune Co asked bankruptcy in 2008, one reason is the need of physical newspaper is decreased sharply. If WPP plc still doing advertising a traditional way, the future of the company is failure. So in 2018, WPP plc is merging its famous JWT agency with its digital outfit Wunderman in the most high-profile move by the world’s biggest advertising group to simplify is business. This movement make the two most important and the strongest parts in WPP plc combine together. “(This) allows us to compete more effectively in the sectors with the most significant opportunities for future growth.” said by Read. The CEO of the WPP plc use this strategy to build the relationship between companies and their customers. Firstly, use Data to collect the information about the product from the company, and then collect the public preference by Big Data Technology, use new digital media technology to make video advertising to show the product while meets the preference of the potential customers, it helped WPP plc to become one of the biggest advertisement organization in the world.

The aim of this strategy is to provide a huge network to the employees to share innovation ideas and integrate these functions, this may help WPP plc to establish a tight band with their clients. Besides that, WPP plc don’t give up the traditional advertising market, still put the advertising on the newspaper to attract the elderly people’s eyes, and post the posters on the public transportation to influence the commuters potentially.

In conclusion, sharing data is the essence advantage of operating business in a digital location. The best things that today’s businesses can do is to change their business models to place a greater emphasis on digital technology as well as partner and customer collaboration and interaction.

Reference:

BARUCHIN, U. (2016). The challenges and opportunities of brands going digital.Retrived from:

https://www.superunion.com/insights/the-challenges-and-opportunities-of-brands-going-digital/

DOGRA, R. (2016). Top Digital Challenges Before Organizations Today and How To Overcome Them. Retrived from:

https://www.netsolutions.com/insights/top-digital-challenges-before-organizations-and-how-they-can-overcome-them/

Holton, K. (2018). WPP combines famous JWT ad agency with digital arm Wunderman. Retrived from:

https://uk.reuters.com/article/us-wpp-restructuring/wpp-combines-famous-jwt-ad-agency-with-digital-arm-wunderman-idUKKCN1NV1SS

Merced, M. (2008). Tribune Files for Bankruptcy, Retrived from:

https://dealbook.nytimes.com/2008/12/08/tribune-files-for-bankruptcy/

Picture source from eMarketer, March 2018.