Despite its continuing popularity, mergers and acquisition (M&A) has a terrible track record. Reviews find that the chance of an acquisition increasing shareholder value is no better than a flip of the coin.
A solid brand architecture strategy can significantly improve the odds of acquisition success. Given that the odds are no better than 50/50 (based on analysis of how many past acquisitions increased shareholder value), companies should make sure they have their brand architecture ducks in a row before they join the impending stampede to buy companies or brands.
Brand architecture often comes down to an evaluation of tradeoffs. In my experience, there’s rarely a cost-free benefit or a no-foul cost. That’s why I have found the concept of brand value so helpful. It focuses on the net effect of an initiative — are the benefits worth more than the costs of getting those benefits or are cost-saving initiatives doing more harm than good?
The job of a brand architect can be compared to the job of a closet organizer, and by that, I don’t mean someone who organizes in secret, I mean an organizer of closets. Both jobs bring order to chaos, throwing out anything that’s no longer useful and developing a system for keeping things in check and off the floor. Let’s explore this analogy. What guidance does it gives us about when you should be assessing...
Branding Strategy Insider helps marketing oriented leaders and professionals like you build strong brands. BSI readers know, we regularly answer questions from marketers everywhere. Today we hear from Teresa, a VP of Marketing in Seattle, Washington who brings us this brand architecture question…
