Publicis Groupe SWOT & PESTLE Analysis

Strength

1. Leader in marketing and communications industry with presence around the globe: Publicis Groupe is one of the leading communication companies in the world as it supports its client throughout the marketing and communication process. By providing dynamic, diverse and disruptive creativity, media expertise, along with data and technology skills, the company facilitates its customers to develop in-depth knowledge of their clients as well as develop a direct digital channels to connect with them. Publicis has a strong network of dealers and associates that give it a competitive edge. The geographical footprint of the Groupe is divided into eight key markets: North America, DACH (Germany, Switzerland and Austria), Northern and Central Europe, Asia Pacific and Middle East/Africa, and Latin America. This helps in delivering efficient services to customers across 100+ countries across the globe. With majority of revenue coming from North America (53%) and Europe (29%), the presence is increasing rapidly in Latin America, Asia Pacific and Middle East Africa. With rapid globalization this scenario can only be seen improving over years to come. The Groupe envisions implementing right balance between global practices run by their solutions and country led model to deliver solutions in an integrated fashion. The global presence is a key factor for its growing value across the world which is going to be a major factor for growth in Asia Pacific and Latin American countries.

2. Diversified business model and revenue segments: Publicis Groupe is not only confined to Service Sector, but has also expanded to various other sectors. The group has four major divisions i.e., Publicis Communications, Publicis Sapient, Publicis Media and Publicis Health. Publicis Communication is a communication hub of the group which brings together the Leo Burnett, Saatchi & Saatchi, Publicis Worldwide, BBH, Marcel, Fallon, MSLGROUP and Prodigious networks. Publicis Sapient is a digital transformation partner which helps well established organizations transform into digitally enabled organization by bringing together strategy, consulting and customer experience with agile engineering. Publicis healthcare is a healthcare communication network and Publics Media uses modern media landscape to drive business transformation. This wide spread sector of operation enables the company to create a diversified revenue stream beyond Services sector and Advertising segment. The revenue generated from one sector can be utilized in other considering the single operational backbone ensuring smooth operation for a longer period of time.

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Weakness

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Opportunity

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Threat

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Political

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Economic

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Social

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Technological

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Legal

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Environmental

1. Customer activism prodding companies to act on sustainability: Customers are looking for companies that can display their values and in return they are rewarding those who understand their values. Global organizations such as Publicis Groupe cannot just be expected to compliant to environmental standards but need to do more for the environment. These initiatives could include massive projects to be undertaken to clean certain areas or ensure some major pollution issue is solved to certain extent by intervention of these companies. Publicis Groupe has taken a pledge to achieve net-zero by 2030. SBTi (Sciene Based Targets initiative) has affirmed their targets as they are parallel with the Paris Agreement and 1.5° scenario. In order to help their clients to reduce their carbon footprints and achieve carbon neutrality, the company developed a calculator called the A.L.I.C.E (Advertising Limiting Impacts & Carbon Emissions), to measure the impact of their campaigns or projects on the environment.

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