The development of multiple establishment of major advertising agencies and its restructuring in Japan

Abstract

 This study aims to examine development of multiple establishment of major advertising agencies and its restructuring in Japan.<BR> After the Second World War, most of advertising agencies expanded their offices to regions to get new accounts. In 1990s, some of major advertising agencies established regional subsidiary companies. One of the reasons was to offer region-based service; another was to save on labor costs by establishing wage system every region. In 2000’s they merged regional subsidiary companies to save management cost by integrating management function and strengthen management base of regional subsidiary companies by expanding scale of operation.