Jcdecaux Competitive Advantage

Total 1,794 Word Count

Executive Summary (46 words)

JCDecaux has a competitive advantage achieved through differentiation and innovation but the advantage will not be sustainable unless it is able to continue to innovate its offering in a manner that will result in buyers willing to pay higher price for JCDecaux outdoor advertising versus competitors.

1a) Value Proposition and Source of Competitive Advantage (398 words)

Being a first mover in Europe, JCDecaux was able to generate significant expertise and secured prime locations locking into long term contracts that it combined with its innovations, ultimately achieved higher audience measurements that warranted a premium price vs its competitors. JCDecaux’s competitors entered the market primarily through acquisitions and consolidations that over time has created formidable competition and has put pressure on the price. However, despite the competition, JCDecaux has differentiated its product offering creating a competitive advantage and higher willing to pay price (WTP) from its customers. JCDecaux’s depth and geographic footprint across all three key segments of outdoor advertising (street furniture, billboards, and transport) enables it to reach and target audiences which makes its offering unique and differentiated. It has been successful in leveraging its prime locations, depth and higher quality perception compared to its competitors to become more unique resulting in a higher WTP by customers. Their experience and learning curve with the bidding process, government regulations, and pricing, along with a good track record of responsible maintenance in street furniture has helped it win 85% of its bids for new and renewal contracts enabled it to lockup contracts that limit future cost pressure by the competition. These new wins and renewals for prime locations help support its differentiation and advantage, at least until the next renewal. JCDecaux differentiated offering was supported by its...