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Strategic analysis of Yellow Pages (Oda)

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In July 1998, France Telecom purchased Oda, a company owned by global advertising and communications group Havas before it was purchased by Vivendi. It was a requirement for France Telecom to respond to its main rival Vivendi, and so in July 1998, Oda was removed from the control of Vivendi and became a major subsidiary of France Telecom.

Oda, which publishes the Yellow Pages phone directory, thus became part of the portfolio of the operator France Telecom.With 104 years of experience, including, 54 years as an advertising directory, 15 in online directories, Oda changed its name to affirm its true vocation as a creative communication space and is now called Yellow Pages.

There are two types of customers for Yellow Pages:
- Users who create content for the subscribers
- The buyers of advertising space, the Financial Yellow Pages.

Yellow Pages was able to respond to changing market mores and seize opportunities when necessary. Based on the skills and the strong relationship it has with its clients, it has developed a strategy of diversification regarding the corporate plan, which led it to consider the new SBA or Strategic Business Activity: site creation. The SBA is particularly interesting because this will make the company t adapt its strategy and change the organization of the company. So we'll see in the next section the importance of the strategy implemented in this third SBA and the unique adventure that Yellow Pages has lived at least in France and Europe.

The creation of a new SBA, the Internet world, entails the adaptation of the strategy with the structure of the company and its management which will necessarily be affected. The complete reorganization of management is a bet that Yellow Pages has undertaken and successfully completed although there are always problems that arise, so management must be responsive and flexible enough to carry out these strategies successfully without causing social drama.

The skills mastered by the enterprise Yellow Pages now also correspond to the key success factors in the sector of the directory. The success enjoyed by Yellow Pages which accounts for a major chunk of advertising and publishing directories for over 50 years, has enabled France Telecom to occupy the leading and dominant position in this market.

Through the business directory, Yellow Pages has several core competencies:
- It has a large computer literacy that enables it to build, update and manage a database of considerable size (and whose commercial potential is exploited as it should be a direct marketing subsidiary, Mediatel). The computer also comes in support of the business of Yellow Pages and production activities in the three strategic business activities, namely, printed directories, electronic directories and site creation.
- It also acquired an expertise, an ability to industrialize a job creation, on which strategy it has achieved its dominant place today in its markets.
- It has developed a powerful in-house sales network, with considerable resources, present everywhere in France.

Tags : Acquisition of Oda by France Telecom, Havas, Vivendi, Strategic Analysis of Yellow Pages

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