Understanding International Strategy in the Professional Services Industry: The Case of the International Marketing Communications Sector

Abstract

The professional services industry is one of the fastest growing economic sectors in most Western and European economies, expanding at an annual rate of 20 per cent. The companies in this sector now account for 18 per cent of jobs in the West, with revenues of over £600 billion a year (GATS, 2000). Along with other professional services the importance of international marketing communications has grown significantly since the early 1980s and has led to the emergence of multinational advertising agencies. These agencies are capable of serving foreign clients in multiple markets and further penetrating these markets to generate new business activities. While little is understood of the modes of the international expansion by advertising agencies, it is apparant that crossborder activities have become increasingly important as a strategy for growth.