Saatchi & Saatchi (A): Pioneers of Globalization in Advertising

Published 01 Oct 2004
Reference 5200
Topic Strategy
Region Global
Summary

This case describes the dramatic rise and fall of Saatchi and Saatchi in the Advertising industry, based on their vision of scale, globalization and diversification, driven by an aggressive acquisition strategy. The (A) case, set in 1988, is a condensed version based on the earlier INSEAD case by Sumantra Ghoshal and Alice Aves (INSEAD, 1989).

Teaching objectives

The series is intended as a basic introductory case on the pros and cons of globalization strategy in a traditionally predominantly local industry and the organizational implications of making this work. It can also be used as a basic introductory or review case on strategy and organization. An important element further consists of the acquisition-driven growth logic, explored in the case, as represented by the P/E (price-earnings) game practiced by S&S and many other companies in many other industries after them, up to the present day.

Keywords
  • International strategy
  • Globalisation of markets
  • Advertising
  • Acquisition strategy
  • Global local tension
  • Strategy and organisation. AR0405
  • AR2004
  • RD1104