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Publicis Groupe SWOT & PESTLE Analysis

ID : 521052353| Oct 2021| 21 pages

COMPANY PROFILE -Publicis Groupe

Business Sector :Advertising and Public Relations

Operating Geography :France, Europe, Global

About Publicis Groupe :

Publicis Groupe, founded in the year 1926, is the 3rd largest communications group in the world and is headquartered in Paris, France. With the major drivers being technology and creativity, the Groupe envisions to drive business transformation across the entire value chain. Publicis Groupe’s Connecting Company model is a highly modular and unique platform that gives the clients plugs and play to their services. The group is organized into four segments: Publicis Communications, Publicis Sapient, Publicis Media and Publicis Health.The divisions have a common operations backbone to ensure the Groupe uses the expertise and power of all the solution hubs. Currently, it is among the "Big four" agency companies. Under the leadership of Arthur Sadoun, CEO and Chairman Publicis Groupe, the client centric company delivers digital and traditional advertising along with media and marketing services to its clients. As of early 2021, the company has approximately 79,051 in over 330 offices which are located across more than 110 countries.

Publicis Groupe’s unique selling proposition or USP lies in being the third largest communications group in the world which is present across the entire marketing and communications value chain. Publicis Groupe’s mission statement reads, “Our aim is to be our clients' indispensable partner in their own transformation by providing them with seamless and agile access to our best-in-class expertise across the entire value chain”.

Publicis Groupe Revenue :


€ 9,712 million – FY ended 31st Dec 2020
€ 9,800 million – FY ended 31st Dec 2019

Competitive Analysis of Publicis Groupe

SWOT
PESTLE
The SWOT analysis for Publicis Groupe is presented below in a matrix followed by the detailed analysis report:
StrengthsWeaknesses
1. Leader in marketing and communications industry with presence around the globe
2. Diversified business model and revenue segments
3. Established training processes for enhanced talent management
1. Incompetence in adapting digital media
2. Lower investments poured in Publicis Groupe's customer-oriented services
OpportunitiesThreats
1. Shift from traditional advertising sources to online forums
2. Consumers moving to high end products
3. Local collaboration brings in expertise at a lower cost
4. Acquisition of software for online brand marketing
5. ‘Power of One’ Strategy to lead in a cookie less environment
1. Competitive pressure in the local and international telecom sector
2. Saturation in urban market and stagnation in rural market
3. Changing demographics impacting brand loyalty
4. Changing methods of advertising during the pandemic
5. Increasing personal data confidentiality risks
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Publicis Groupe

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.

The remaining section under "Strength" is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

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References used in Publicis Groupe SWOT & PESTLE Analysis Report

1. Annual Report 2020 - http://documents.publicisgroupe.com/resultat2021/PBS2020_PUBLICIS_URD_EN_MEL_V5_21_04_29.pdf

2. Publicis Groupe appointed by E.ON as Media and Performance partner across Europe | Publicis Groupe - https://www.publicisgroupe.com/en/news/press-releases/publicis-groupe-appointed-by-eon-as-media-and-performance-partner-across-europe

3. Publicis Groupe Acquires SaaS Platfrom CitrusAd | Branding in Asia Magazine - https://www.brandinginasia.com/publicis-groupe-acquires-saas-platfrom-citrusad/

4. Using the Power of 1 to Pave the Way in a Cookieless World | Built In Chicago - https://www.builtinchicago.org/2021/07/19/epsilon-publicis-groupe-cookieless-world

5. Has advertising and marketing industry been disruptive or elevated during COVID-19? - https://yourstory.com/2021/06/advertising-marketing-industry-disruptive-covid19/amp

The detailed complete set of references are available on request in the 'Complete report' on purchase.

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Publicis Groupe SWOT and PESTLE analysis has been conducted and reviewed by senior analysts from Barakaat Consulting.

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