Strategic option for E-Types

E-types Company is a Copenhagen based design agency. According to its founders; its
approach is to be cutting edge, different, better. Their aim is to add value for their customer
by delivering a unique, high quality service starting with an intense deep investigation and
understanding of a customer’s DNA enabling them to better understand the customers’
needs.

Looking at market; we have a high number of agencies that offer creative work for a high
number of potential clients: we see one people advertising experts to big multinational
marketing agencies on one side and almost the same fragmentated diverse market on the
side of potential customers.
Therefore competition is generally high and if a customer isn’t willing to pay high prices for
design services they will always find someone cheaper. Also there will be regularly new
agencies joining the market as capital costs are low and a market entry is generally easy.
Third one can assume that the rivalry is high and that agencies will always try to steal
customers and get their budget.
And last the bargaining power of the buyers is in general in all creative professions very
high.

On first sight therefore this market does look challenging and it seems to be hard to find
competitive advantage.

To succeed e-type must follow a strategy of differentiation to gain sustainable competitive

advantage and through those higher margins on their product / service if making sure that
you offer a product that is hard to copy or imitate.

Offering an edgy, highly creative product as a result can be seen as a clear separation from
other agencies that offer mainstream, replicated, standardized yet not specific custom made
campaigns.

The key for e-types differentiation strategy is to find the right creative people because their
know-how adds value to the company. Good talents are rare and intellectual services are
then hard to imitate and almost impossible to substitute.
Implementation areas & plan

1- Organizational structure : Flat Structure

 Flat structure will give more flexibility & increases interaction between
organization’s members; thus increasing innovation / creativity

 How to create:
Allow for open & safe environment (all types of discussions are allowed).
Frequent communication (no silos)

2- Culture: Weak Culture

 Weak culture provides more flexibility & quick reacting to change

 How to create: Adopting open environment without adhering to too much rules
from top management

3- Power and informal networks

 Informal networks (Trust Network) : Adopting openness to create environment

that people can confide in each other

 Moderate level of conflicts about tasks will be encouraged to increase creativity

& productivity