Brand Extension – Furniture

In right aways fierce competition, organizations argon driven to r from each one, strengthen their existences in grumpy foodstuffs, and become a transnational enterprise by taking a mixture of policies including finding modernistic-made market, growth saucily features, or even sufficeing a amalgamation and acquisition (M&A). Concerning the developing market, this idea disces and recommends corporate shop strategy for two companies that ar proposed to immingle they atomic number 18 home ground and Fabprefab. The discussion will world-class elaborate overviews of home ground and Fabrefab including the elaboration of each strengths and weaknesses that will benefit the optical fusion.In addition, this paper will in like manner elaborate the benefits and perils of mergers and a concept of developing brand strategy. In the end, we provide tribute for the merged companies, habitat and Fabprefab, since it is dominancely experiencing downfall. The recommendation shoul d take into account considerations that ensure the delivery of best service and creative, strategical and economically sustainable ways to transfer the tangible and intangible prise of a brand into new product (service) categories, new markets or new industries. Brand Extension Furniture/Home furnishing Goes Prefab I. IntroductionIn order to diversify organization reaches, strengthen their existences in particular markets, and become a multinational enterprise, managements of the organization can take a mixture of policies including finding new market, developing new features, or even performing a merger and acquisition (M&A). Mergers and Acquisition (M&A) is one example that a business performs to restrict their business growing and getting bigger. This makes sense since the number of M&A is getting bigger every year. According to the Securities Data Company, the dollar value of U. S. (M&A) in 1996 recorded a 27 percent increase to US$658.8 billion from US$518 billion in 1995. While an M&A becomes a corporate strategy, marketing strategy interprets the corporate strategy to bear upon the market characteristics and customers needs. Therefore, marketing department becomes the front liner of the smart set since marketers, large number who work at marketing department, are those who made actual take with customers within their daily operations. Their responsibilities are to generate constructive views of customers about their society. Therefore, it is their responsibilities to wrap up what customer really wants and how they want to be treated.This is important to ensure the products are saleable in the market. Under such circumstances, it is non a with child(p) surprise that term marketing oriented management emerges in todays management practice in order to help organizations to revolve around in serving customers. Concerning corporate and marketing strategies, this paper will discus and recommend corporate brand strategy for two companies that are proposed to merge they are habitat and Fabprefab. The discussion will first elaborate overviews of habitat and Fabrefab including the elaboration of each strengths and weaknesses that will benefit the merger.In addition, this paper will also elaborate the benefits and perils of mergers and a concept of developing brand strategy. II. Proposed Mergers amidst habitat and Fabprefab II. 1 Habitat Habitat is furnishing company that established in UK, particularly London, in 1966. Within the over 40 years of operation, the company this instant serves in more than 76 stores worldwide in which 42 of them are in UK, 24 are in France, and the rests are in Spain (5), Germany (5), and another(prenominal) countries through franchise system. Like other furniture companies, Habitat also has wide range of products for living room, dining room to kitchen, and bathroom.In internet era, the company has also provided online catalogue although it has not enable the any online transactions. II. 1. 1 Habitat and Needs for Strategic Partnership By definition, alliance is an agreement between two or more individuals or companies that agree to perform particular action in order to achieve a common intent (Web Finance, 2005). Since the intention of a strategic alliance is to give strengths to each entity, therefore, each entity has to have particular strength that is beneficial for other allies. In this situation, the parties gnarled (allies) have harmonizing strengths.As explained above, strategic alliance in business situation has potential benefits and disadvantages. The intention of a strategic alliance is to grow a companys revenue without the need to incur high expansion costs. Although Habitat is a large company, we see that the company is in need to perform strategic partnership so that they can quickly exist in target market and gain improved brand awareness. For that reason, we suggest that Habitat should perform strategic partnerships with other furniture companies or w ith supplier in order to gain one or more benefits as succeeding(a) enable a company to enter a new market with new products and services without incurring costs of look and development for the products increase the market reach without the need to establish a new disunite offices increase the volume of production output use new engineering science that simplify the process while enhancing the quality of products Speed up the research and development by sharing costs and resources (BDC, 2006). II. 1. 2 Habitat and plan to be Real Estate Brokerage Service Real terra firma brokerage house service has its own level of competition that Habitat whitethorn not comprehend yet.It means that Habitat should focus on developing core competences as furnishing retailers instead of extending services into real estate brokerage that Habitat does not have any experience in the assiduity (Habitat, 2006). We would rather suggest habitat to perform strategic partnership with multinational companies that have wide market penetration in locations that Habitat does not exist yet. This is in line with the one of the benefits of strategic partnership as mentioned above (Habitat, 2006). II. 1. 3 Habitat and construction serviceAlthough construction service is not Habitat core competence but construction service has sexual relation with furnishing industry. It means that Habitat could enter the construction service but they had stop to perform alliances with one company in the industry instead of by establishing its own company. The form of alliance could be the first options of using Habitat product in construction projects that require completed full fitted out(p) buildings or need an advisor to design furniture for building projects.