An Australian company I advise recently appointed a new CEO. She had been the internal candidate and her predecessor had held the position for 15 years.
Why Consolidating Brands Can Be a Strategic Mistake
Are you doing it for your customers — or yourself?
September 17, 2019
Summary.
Companies may seek to establish a clear identity by consolidating the brand portfolio. Although this often ends badly because customers of the discontinued brands may decamp to the competition, it’s a strategy that is often repeated, because managers are making the mistake of projecting their confusions about corporate identity onto customers who only perceive the brand that’s being continued and have no such confusion. Smart companies avoid the trap and are perfectly happy to manage multiple brands in the same sector, each targeted at a distinct market segment.