Graffiti - Sample Web Development Company Business Plan

GRAPHICS DESIGN INDUSTRY The graphic design sector has enjoyed a strong period thanks to the growth in web design work, but the economic downturn is likely to see marketing and IT budgets slashed. The continued growth in the online sector and Australia's strong economic growth have meant good times for the graphic design sector. IBIS World estimates that this industry will grow by 4.3% over the five year period to 2008 ‐ 09, largely on the back of solid robust economic growth between 2004 and 2007. A decrease in advertising and packing caused by the economic slowdown in the US slowed revenue growth in 2006 ‐ 07, and revenue is expected to contract slightly in 2008 ‐ 09 as the financial crisis hits demand for industry services. There are two main barriers to future industry growth. First, the sector is largely reliant on overall advertising and promotional budgets and expenditures by clients, which are under great pressure as the downturn bites. Second, the industry is being hurt by the development of easier forms of packaged design software that can be used by people who are not trained graphic designers. When internet advertising began to grab a substantial share of the media market, the industry was flooded with small design firms, often sole traders, looking to exploit new technology for advantage. The proliferation of small companies, which tend to earn less, has led to a drop in the average wage, as employment growth has outstripped wages increases. Larger firms are now starting to buy up many of these small companies. IBIS World forecasts that this industry will grow by 3.6% over the five year period to 2013 ‐ 14. Growth will be insignificant in 2009 ‐ 10 as the effects of the financial crisis continue to hurt demand for industry services. However, over the remaining years of the outlook period, a broad ‐ based economic recovery will return the industry to strong growth. Opportunities that are expected to be seized include the continuing move by clients towards use of more cost effective, targeted and direct forms of promotional expenditure. Continuing strong growth in web ‐ based advertising and products will also give this industry a boost. On the supply side, technology will continue to improve the quality and reduce the production cost of design work. This will lead to higher profits and lower the need for large staff numbers, though employment is still expected to grow along with revenue. On the other hand, improving technology will lower the barriers of entry to the industry, potentially creating more competition from low ‐ cost desktop publishers. Another challenge to the industry is the evident oversupply of graphics courses and graduates in relation to industry demand and growth. © BPLANEXPERTS.COM 19 | P a g e