Brand Extension – Furniture

In todays fierce competition, organizations atomic number 18 driven to reach, strengthen their existences in point markets, and become a multinational enterprise by taking a mixture of policies including finding immature market, development new features, or even performing a merger and acquisition (M&A). Concerning the developing market, this newsprint discuses and advises corporate brand schema for two companies that are proposed to merge they are habitat and Fabprefab. The discussion allow first elaborate overviews of home ground and Fabrefab including the elaboration of each strengths and weaknesses that leave behind benefit the merger.In addition, this paper will likewise elaborate the benefits and perils of mergers and a concept of developing brand strategy. In the end, we provide recommendation for the merged companies, habitat and Fabprefab, since it is potentially experiencing downfall. The recommendation should return into account considerations that match the d elivery of best service and creative, strategical and economically sustainable ways to transfer the tangible and intangible values of a brand into new increase (service) categories, new markets or new industries. Brand Extension Furniture/Home furnishing Goes Prefab I. IntroductionIn orderliness to lead organization reaches, strengthen their existences in point 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 keep their business exploitation and getting bigger. This makes sense since the number of M&A is getting bigger every year. According to the Securities selective information Company, the dollar value of U. S. (M&A) in 1996 recorded a 27 percent increase to US$658.8 one million million million from US$518 billion in 1995. While an M&A becomes a corporate strategy, marketing strategy interprets the corporate strategy to match the market characteristics and customers needs. Therefore, marketing department becomes the front liner of the beau monde since marketers, pile who work at marketing department, are those who made actual contact with customers within their daily operations. Their responsibilities are to generate constructive views of customers about their fraternity. Therefore, it is their responsibilities to comprehend 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 not a great surprise that terminal marketing oriented management emerges in todays management practice in order to help organizations to focus 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 Habi tat 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 as well elaborate the benefits and perils of mergers and a concept of developing brand strategy. II. Proposed Mergers between Habitat and Fabprefab II. 1 Habitat Habitat is furnishing company that established in UK, especially London, in 1966. Within the over 40 years of operation, the company now 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 other countries through franchise system. Like other piece of furniture companies, Habitat excessively 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 Partne rship 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 goal (Web Finance, 2005). Since the intention of a strategic alliance is to give strengths to each entity, therefore, each entity has to relieve oneself particular strength that is beneficial for other allies. In this situation, the parties involved (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 last expansion costs. Although Habitat is a large company, we see that the company is in need to perform strategic coalition so that they can quickly exist in target market and gain amend brand awareness. For that reason, we suggest that Habitat should perform strategic partnerships with other furniture companies or with supplier in order to gain o ne or more benefits as following enable a company to enter a new market with new products and services without incurring costs of research and reading for the products widening the market reach without the need to establish a new branch offices increase the volume of production output use new technology that simplify the process while enhancing the quality of products advance up the research and development by sharing costs and resources (BDC, 2006). II. 1. 2 Habitat and Intention to be Real Estate Brokerage Service Real estate brokerage service has its own train of competition that Habitat may not comprehend yet.It agency 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 industry (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 anatomical structure serviceAlthough construction service is not Habitat core competence but construction service has relation with furnishing industry. It means that Habitat could enter the construction service but they had better 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 furnished buildings or need an advisor to design furniture for building projects.