The strategic transformation of advertising agencies in the digital era : the case of Cheil Worldwide in Korea

Abstract

Cheil Worldwide is the number one marketing and advertising agency in Korea. Throughout its history, it heavily relied on its parent company and major client, Samsung and on traditional media advertising for its revenue. However, as the digital medium has become an important platform for the advertising industry, Cheil Worldwide is facing strategic challenges in this field. Cheil Worldwide needs to break out of its domestic boundaries and adapt into the digitalized industry and seek competitive advantage over its competitors. This thesis analyzes the strategic changes that other leading advertising agencies have made and makes recommendations for Cheil Worldwide to map its future path and recreate the value positioning of the company. Cheil Worldwide can strengthen its position globally and use this study to plan for its growth. It will specifically answer the question: "Will Cheil Worldwide survive in the digitized advertising industry?" by comparing leading advertising agencies with Cheil Worldwide and highlight issues dealing with digital agencies.