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Case Analysis for HUGE and Digital Strategy Sue Danke Sara Jacobs Connie Lane Siena Heights University

TEAM CASE ANALYSIS FOR HUGE Aaron Shapiro, CEO and partner with HUGE the fastest growing digital agency in the United States (Casadesue-Masanell & Karvounis, 2012, p. 1), has enjoyed years of success

from its inception in 1999. From its humble beginning, with just 9 employees to over 300 today, HUGE believed that a successful digital design was one that was user-friendly and satisfied the customers requirements ( Casadesue-Masanell & Karvounis, 2012). With all of the creative talent and skill in technology know-how, Shapiro plans on holding to his success by meeting the competition head on. Porter (2007) cites, the job of the strategist is to understand and cope with competition (p. 2). The primary issue of the case was how HUGE planned to address the competition and initiate growth without risking the good results they already achieved. By evaluating the competitive forces that shape strategy (Porter, 2007, p.1) HUGE laid out a plan they hoped would increase their business. With different options available and directions to go in, it was important for them to be open to new ideas. Strategy, clearly, must be flexible and adaptive (Haeckel, 2008, p.14). With that in mind HUGE zeroed in on their best strategic growth plan. It integrated; a more exclusive relation with their customers, a larger and more expansive service, moving into a global community, and embracing the medical field. With many of their competitors already pursuing these same avenues, HUGE may have their work cut out for them. Digital designing has affected the lives of everyone from face book to market searching, it certainly appears to be on the forefront of the future. The organizational culture at HUGE encourages excellence and creativity from their employees. HUGE may have to balance their unique working environment and still be able to redesign their strategic plan in order to progress.

TEAM CASE ANALYSIS FOR HUGE The digital industry has shot up over 500% in a 11 year period (Casadesue-Masanell & Karvounis, 2012). No one is sure how far it will go, but one thing seems to be clear-- a concise strategic plan will be crucial for HUGE'S big cut of the profits. The global market is fast-paced and because the information component of products can change faster, it will change faster (Haeckel, 2008, p.10). How will HUGE seize the opportunity to redefine its future for big growth. Presented were four options for growth, because to be successful in dynamic environments, organizations must be willing to expend considerable amounts of energy in examining fundamental questions to the organization (Westover, 2010, p. 45). As previously stated, the single most important issue in this change should not harm the culture they had created in relation to the mission of the organization.

The first scenario had HUGE trying to expand retainer relationships. This would give the company more opportunities working with the same customer over time, instead of one and done. HUGE also explored the possibility of expanding their office base to other cities, as well as other countries. A third option for HUGE was to expand their market into more traditional marketing services. This would expand HUGE's competition, and also directly align themselves with other competition. Lastly, the business explore targeting health care in a market where health care and pharmaceutical marketing was nearly ignored. With growth, sometimes a business must reconceive its definition of the marketplace, redraw the boundaries of the firm, redefine its value propositions, and rethink its most fundamental assumptions about how to compete (Hamel & Prahalad , 2008, p. 14). This does not, however, have to affect the integrity or the excellence of the service HUGE delivers. Their mission and culture has made them a competitor in a quickly growing, high competitive arena.

TEAM CASE ANALYSIS FOR HUGE Respect for structural mechanisms and roles that promote stability must be maintained, even while one is trying to alter radically the existing system (Westover. 2010, p. 47). The simplest, and most beneficial change for HUGE should be geographic expansion.

HUGE insisted that the majority of its work be completed in office rather than at client offices (Casadesus-Masanell & Karvounis, 2012, p. 8). With their only offices in New York and Los Angeles, this limits their customer base. Also, Shapiro was afraid that moving more staff into the two offices would compromise the culture that was built within those offices (CasadesusMasanell & Karvounis, 2012). Creating new offices with present culture in Houston or Atlanta, two U.S. Cities with the most Fortune 500 headquarters, would increase HUGE's customer base, allowing them to complete customer requests in-house (Casadesus-Masanell & Karvounis, 2012). With a new office in Houston, HUGE would be able to reach out to two of the most digitally savvy cities in the United States, Austin, Texas and Las Vegas, Nevada. Internationally, in the countries of Norway, Denmark, and Ireland, where eCommerce is a quarter of their total commerce, HUGE would also benefit opening an office central to these countries (CasadesusMasanell & Karvounis, 2012). The leadership at HUGE wanted to increase revenue without sacrificing the high quality of work the company was known for. Shapiro did not necessarily need to be the biggest company, but he and the others leaders did want to be the best (Casadesue-Masanell & Karvounis, 2012). Four areas of potential growth areas for HUGE were in retainer relationships, geographic expansion, expanded traditional service and health care (Casadesue-Masanell & Karvounis, 2012). Retainer Relationships: This would involve changing the interactions with current business partners. Hugh would have recurrent roles in business digital needs instead of a one-

TEAM CASE ANALYSIS FOR HUGE time step up process. This may help with the increased revenue over time, but may also have HUGE performing activities where they are not experts (Casadesue-Masanell & Karvounis). Geographic Expansion: By expanding into more cities and possibly other countries, HUGE would be exposed to more business opportunities, thereby increasing revenue. HUGE Labs was developed as a place for employees to submit ideas and participate in strategy and design challenges (Casadesue-Masanell & Karvounis, 2012, p. 10). HUGE could use this as a training site to evaluate employees who could be trained for leadership roles. Expanded Traditional Service: This would involve exploring options of print or television ads, or increasing their own technical support. Area the company would have to recruit from other business since this is not an area HUGE has many experts (CasadesueMasanell & Karvounis 2012). Health Care: This is a relatively new area to online advertising. By 2014,

pharmaceutical and health care online ad spending was expected to increase by 50% (CasadesueMasanell & Karvounis 2012, p. 12). HUGE could capitalize on this revenue making activities by having being proactive with new ideas for health care online advertising. An increase in revenue would be one way to evaluate if the growth strategies were working. An increase in money would indicate that the strategy has worked. Another way would be to test if their work was useful be having regular people used the website and see if they could easily navigate the contents. In conclusion, HUGE has targeted a variety of innovative options for strategic growth. In keeping with their original core of expertise, it makes sense that they will achieve their goal. Evaluating progress as they move into new fields to monitor the journey, will help to keep them

TEAM CASE ANALYSIS FOR HUGE on course. Considering the excellent record of accomplishment under their belt, it seems that HUGE will be able to scale to new heights with relative success.

TEAM CASE ANALYSIS FOR HUGE References Casadesus-Masanell, R. and Karvounis, N. G. (2012). HUGE and digital strategy. Harvard Business School Press. Retrieved from https://cb.hbsp.harvard.edu/cbmp/asset/19031001 Haeackel, S. H. (2008). Unpredictability: The only one sure thing. Adaptive enterprise:

Creating and leading sense-and-respond organizations (pp.1-14). Boston, MA: Harvard Business School. Retrieved from https://cb.hbsp.harvard.edu/cbmp/asset/19030380 Hamel, G. & Prahalad, C.K. (2008). Learning to forget. Competing for the future (pp. 3-26) Boston, MA: Retrieved from https://cb.hbsp.harvard.edu/cbmp/asset/19030380 Porter, M.E. (2008). The five competitive forces that shape strategy. Harvard Business Review (pp. 1-17). Retrieved from https://cb.hbsp.harvard.edu/cbmp/asset/19030378 Westover, J. H. (2010). Managing organizational change: Change agent strategies and techniques to successfully managing the dynamics of stability and change in organizations. International Journal of Management and Innovation, 2(1), 45-50. Retrieved from http://search.proquest.com/docview/89071538?accountid=28644