Results for articles with tag 'expansion' (3 total)
02/10/2024 07:26:50 AM 
"Their Explore team was given the audacious task of helping Nike become a sports company. The team met the challenge by creating a map to identify the richest opportunities, define a strategy for growth, and set first steps toward a future vision. The map helped the team see product beyond shoes, such as sunglasses, watches, MP3 players, and sports apparel. The data on their map included consumer needs, societal and technology trends, and Nike's chief competitors, adidas, Puma, and Reebok. It also included indirect competitors such as MTV, because it offers a rival option for what kids can do after school: Nike wants them playing sports; MTV wants them parked in front of the tube. By drawing such a comprehensive map, Nike was able to consider new directions, such as partnerships that marry sports and digital entertainment like its successful Nike + iPod platform."
Clearly, looking over the horizon and exploring all the possibilities is a way to see opportunities, but this no test of whether a brand can credibly stretch into these new areas. Much work has to be done to understand the strength and equity of the brand and it's ability to expand into other areas.
In addition, rather than rely on existing published data about surrounding markets, it would make sense to talk leading edge opinion leaders in these areas and in other fields to get some speculative understanding of how the shape of this map could change.
It's also further proof that strategists increasingly need great designers to bring their thinking and ideas to life.
Posted by Ed Cotton
03/17/2008 06:16:52 AM
This could be a boring, dangerous and reactive way to go. Before they were forced to lead and forge a path, now they can just look and follow. In the long run, this could be a problem: when you fall back and get satisfied, the world around seems to fade away.
The acquisition strategy marks a shift from H&M’s old approach of launching sub brands (or rather sub companies in another category such as COS
Where will it end for H&M? Will it become the new PPR ?
By Claes Foxerus. You can find more writing from Claes here. He’s also the co-founder and editor of The David Report . And, for those of you looking for Swedish Planning connections Claes is the man, he is the co-founder and secretary of the Swedish APG.
Posted by Ed Cotton
05/13/2007 07:11:52 AM
He talks about the frenzied desire to expand brands faster than their DNA can tolerate and highlights some examples of brands that have expanded slowly.
"But the Schultz memo is interesting and useful nonetheless, because it shows that even an iconic company that serves a highly addictive product can water down the immense value of its brand by expanding too far and too fast and in too many directions at once. Sadly, this is a fate that befalls many American companies. Time and again in recent years, we've seen small, cutting-edge and quirky brands gain critical mass — only to lose their charm and customer appeal after they engage in breakneck expansion.
Why does this happen? Companies can't help it, in part because the huge macroeconomic forces that dictate corporate behavior impel them to expand too fast and too wide. But at the same time, the powerful psychological forces that dictate consumer behavior can cause customers to recoil from the chains they once loved.
Many of America's best-known chains came of age in a period in which it was easy for companies to go public at a comparatively young age. And publicly held companies, whether they make turbines or tiramisu, are programmed to maximize efficiency and increase sales every quarter — no matter what. Inevitably, this mentality leads to the cutting of corners."
Gross goes on to talk about the problem rapid expansion caused California Pizza Kitchen, Restoration Hardware and Krispy Kreme and contrasts these strategies with those of slow movers, Trader Joe's and In and Out Burger.
Articles for tag expansion (3 total).