Said to be the determining factor of the overall competitiveness of the industry, the intensity of competitive rivalry is influenced by the strength of the major players in the market, the levels of competitive advantages and the market potential.
At the high end of the market, the competition for Fortune 500 accounts is especially fierce because the prize, or “market potential”, is so large. This same level of competition is not nearly as apparent neither in the mid-sized enterprise nor in the small business market where the individual prize for any given account is relatively small. Also, the digital marketing agency ecosystem is local and relationship-based like many services industries even though the Internet has made physical location somewhat irrelevant.
Clients still like to have a face they can talk to, meet for coffee and periodically meet in-person. Additionally, since the market is highly fragmented and tiered (small agencies treat small businesses, big agencies treat big companies), no distinct leaders have emerged, and the market share is distributed.
With a localized market, no true leader and highly fragmented industry, the intensity of competitive rivalry in the segments below Fortune 1000 remains quite low. This encourages many large agency veterans to break out and start their own shop.
- See more at: http://www.websitemagazine.com/content/blogs/posts/archive/2012/11/08/why-is-the-digital-agency-market-s-tail-growing-longer.aspx#sthash.i9bJcDHo.dpuf
Said to be the determining factor of the overall competitiveness of the industry, the intensity of competitive rivalry is influenced by the strength of the major players in the market, the levels of competitive advantages and the market potential. At the high end of the market, the competition for Fortune 500 accounts is especially fierce because the prize, or “market potential”, is so large. This same level of competition is not nearly as apparent neither in the mid-sized enterprise nor in the small business market where the individual prize for any given account is relatively small. Also, the digital marketing agency ecosystem is local and relationship-based like many services industries even though the Internet has made physical location somewhat irrelevant.Clients still like to have a face they can talk to, meet for coffee and periodically meet in-person. Additionally, since the market is highly fragmented and tiered (small agencies treat small businesses, big agencies treat big companies), no distinct leaders have emerged, and the market share is distributed.With a localized market, no true leader and highly fragmented industry, the intensity of competitive rivalry in the segments below Fortune 1000 remains quite low. This encourages many large agency veterans to break out and start their own shop.- See more at: http://www.websitemagazine.com/content/blogs/posts/archive/2012/11/08/why-is-the-digital-agency-market-s-tail-growing-longer.aspx#sthash.i9bJcDHo.dpuf
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Said to be the determining factor of the overall competitiveness of the industry, the intensity of competitive rivalry is influenced by the strength of the major players in the market, the levels of competitive advantages and the market potential.
At the high end of the market, the competition for Fortune 500 accounts is especially fierce because the prize, or “market potential”, is so large. This same level of competition is not nearly as apparent neither in the mid-sized enterprise nor in the small business market where the individual prize for any given account is relatively small. Also, the digital marketing agency ecosystem is local and relationship-based like many services industries even though the Internet has made physical location somewhat irrelevant.
Clients still like to have a face they can talk to, meet for coffee and periodically meet in-person. Additionally, since the market is highly fragmented and tiered (small agencies treat small businesses, big agencies treat big companies), no distinct leaders have emerged, and the market share is distributed.
With a localized market, no true leader and highly fragmented industry, the intensity of competitive rivalry in the segments below Fortune 1000 remains quite low. This encourages many large agency veterans to break out and start their own shop.
- See more at: http://www.websitemagazine.com/content/blogs/posts/archive/2012/11/08/why-is-the-digital-agency-market-s-tail-growing-longer.aspx#sthash.i9bJcDHo.dpuf
การแปล กรุณารอสักครู่..