Essay: Factors for Successful Brand transition

Sample Essay

Words 1,650

Mergers and acquisition has become one of the global phenomena. Companies merge for numerous reasons like to boost their growth or to eliminate competition or to enter into the new product line or exploring new markets. But the problem is that mangers pay little attention toward planning and homework before mergers as such decisions required because decision like this has long term consequences on the future growth and survival of the company. There should be more time spending and analysis of the long implications.

The result is that there left very important matters undecided like the true value and transition of brand strategies as in the case under discussion. This has negative impact on the achievement of long run strategic objectives of the company (Hogan & Bell, 2008). Another key implication is on the business strategy and may proved to be an impediment in the integration of sold and new business process. However, Hogan & Bell (2008) suggest that some important factors that should be considered by the managers before making such strategic level decisions.

Sort out the possible implications of brand transitions on demand

It is very imperative for the acquiring company to determine its objectives and true value of the target company’s assets particularly brand equity before acquisition in order to avoid over payment for the assets. So it is the responsibility to collect information beyond balance sheets as much as possible. The acquirer valuation should be based on the simple criteria: whether they can shift demand from one brand to another and what is the possible how time line of this transition (Hogan & Bell, 2008).

The questions like: How much premium price customers are willing to pay for its products and how much they are loyal to that brand? Where is the power of brand lies like in the distribution channel or product attributes? Is it possible to transit this brand to another and if yes then how long it would take? So it requires that company should research and plane very well before in order to avoid confusions like in this case about the brand transition strategies. It is imperative because company should be in opposition to pay the right value of other company’s brand (Hogan & Bell, 2008).

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