Over the past two years, WRSX have changed their strategy which has caused a strategic drift. Moreover, when spotting the new opportunities and receive better information, WRSX has changed their intended strategies which were already established in the strategic choices. The changes experienced by WRSX were made in order to increase the share price and to boost performance indexes. The agreement not to expand in new market was changed by collaborating with Asian SMEs, In addition, the company drifted from intended strategy of being multi-divisonal and implement the concept of matrix structure.
On the first board meeting, WRSX board decided not to take the market opportunity in China because of the intended strategy that was made in the strategic choices in order to create efficient local presence first . The client feedback suggests that it is too risky to develop presence in China’s market. On the other hand, the feedback suggests that not entering Chinese market will lead to missed business opportunities in the country and with clients looking to create global campaigns there. By that time, the negative impact in entering Chinese market could be in terms of financial and business risk. However, the feedback suggests a positive impact for management of growth, client attraction and retention and leadership capability. The decision to create cultural change in New York, where WRSX already have an office, was taken in complementation to maintain the poor performance of the local agency in US.
It could be concluded that because of the new information emerged, WRSX strategy to be process focused has drifted to the emergent strategy of focusing on market development and differentiation
Furthermore, during the Board Meeting Three a…
… of market penetration could be implement to foster WRSX to increase market share by providing maintenance of the current position first, rather than striving to expand (Cole, 2003).
Moreover, Ansoff suggested some main direction that companies should follow to develop market and product conditions. The market development and differentiation strategies suggest that in order to increase sales, WRSX have to offer their services in new developing markets such as China or India. The strategy for market development gives the opportunity to expand their service in order to attract competitors’ clients and to expand in unreached markets (Barry, Witcher and Chau, 2010). Potential solution could be acquisition of UK agency competitor to assist WRSX to enter new market quicker and smoother go through the barriers of entry such as government regulations and different culture.