Strategies and Objectives of WPP Set for the Period up to 2025 Announced
In a recent announcement, the world's largest holding company, WPP, has revealed its strategy for the next few years. The plan aims to drive growth, return to pre-pandemic revenue levels, and invest heavily in commerce, experience, and technology.
WPP plans to achieve this by pursuing limited mergers and acquisitions, with a focus on enhancing their capabilities. The company aims to achieve annual cost savings of approximately £815 million by 2025, of which two-thirds will be reinvested into incentives, talent, and technology.
The strategy also targets £200 million in annual cost savings by 2025. WPP intends to return to growth by 2022, with a goal of reaching 2019 revenue levels, and aims for further cost savings beyond that.
To fuel this growth, WPP plans to invest £1.5 billion in commerce, experience, and technology from 2022 to 2025. This investment is expected to contribute to revenue growth from 2023, with a target of 3-4% organic revenue growth from that year onwards.
The call discussed goals and strategies through 2025, with a focus on increasing investments in commerce, experience, and technology. WPP's strategy involves further cost savings, with the company limiting its mergers and acquisitions to ensure strategic and financially sound growth.
In summary, WPP's strategy for the next few years is focused on growth, cost savings, and strategic investments in commerce, experience, and technology. The company aims to return to 2019 revenue levels by 2022, achieve annual cost savings of £815 million by 2025, and pursue limited mergers and acquisitions to enhance their capabilities. The reinvested cost savings are intended to drive further growth, with a target of 3-4% organic revenue growth from 2023.
