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ScanGroup FY2012 - Not Good!
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dunkang
#11 Posted : Friday, March 01, 2013 11:45:06 AM
Rank: Elder

Joined: 6/2/2011
Posts: 4,824
Location: -1.2107, 36.8831
2012 wrote:
Annother contributor to the drop must be small new set-ups who are really giving scangroup a run for the money. Huge accounts like KPLC and KQ moved to newly formed companies not to forget that the former CEO of Ogilvy also set up a big competitor.
I don't know how the future or how to mitigate this because unlike most industries the assets for advertising is ideas ie people and the people setting up the new companies are ex-employees making it easy to move with clients.

Thanks for that info.
Kindly also inform us, are the ongoing huge spending costs by major firms also eating into the adverts firms revenue?
Receive with simplicity everything that happens to you.” ― Rashi

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streetwise
#12 Posted : Friday, March 01, 2013 11:53:33 AM
Rank: Veteran

Joined: 6/23/2011
Posts: 1,740
Location: Nairobi
A few thought come into mind:-

(1) what will happend when campains are over and there is no more revenue from this stream.

(2) What is the limitation for any one to enter into this market.

(2) How many competitors are in this market, include

- Print media
- Intenert
- Tv
- Radio
- Word of mouth
- offshore compamies etc

My question is how can any one tell that profitability of this company is not a one time only event.
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ChessMaster
#13 Posted : Friday, March 01, 2013 2:39:33 PM
Rank: Elder

Joined: 2/23/2009
Posts: 1,626
streetwise wrote:
A few thought come into mind:-

(1) what will happend when campains are over and there is no more revenue from this stream.

(2) What is the limitation for any one to enter into this market.

(2) How many competitors are in this market, include

- Print media
- Intenert
- Tv
- Radio
- Word of mouth
- offshore compamies etc

My question is how can any one tell that profitability of this company is not a one time only event.


I think 2012 has defined it well.The problem with advertising is that its greatest asset is not clients but the innovative and creative individuals.But once you learn the ropes and taking clients away isn't that hard.T think the barriers to entry in this market are pretty low.
Uncertainty is certain.Let go
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2012
#14 Posted : Wednesday, April 03, 2013 12:03:16 PM
Rank: Elder

Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
streetwise wrote:
A few thought come into mind:-

(1) what will happend when campains are over and there is no more revenue from this stream.

(2) What is the limitation for any one to enter into this market.

(3) How many competitors are in this market, include

- Print media
- Intenert
- Tv
- Radio
- Word of mouth
- offshore compamies etc

My question is how can any one tell that profitability of this company is not a one time only event.


Good questions @streetwise.
I think the effects of your 3 questions are being felt now @ Scangroup as they are on a retrenchment spree. Local competition from new local entrants is serious.

BBI will solve it :)
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