The Role Of Corporate Brands In Competitive Advantage.

Dear reader,

The importance of the success factor "strong corporate brand" in many facets of the company has rightly moved into the consciousness of brand management (with or without soup).

But managing a corporate brand is a complex and dynamic task, very similar to that of a product brand. In addition to the advantages of using the best-known brand in a portfolio as a corporate brand, as in the case of Campbell, it is important to constantly weigh up the risks. The question of whether the corporate brand should not be a neutral brand that does not originate from the core business is justified.

The crisis of the core VW brand, which is radiating to the other brands of the Volkswagen Group, is a current example, as is the discussion about the sale of thyssenkrupp's steel division, which has defined the core of the Group and the identity of the brand for decades. Similarly, the Continental Group still smells like tire rubber in the minds of many stakeholders. Brand experiences that have been learned over decades are not easy to abstract. And finally: the corporate strategy of hard-nosed portfolio management, the profit-driven active buying and selling of companies and brands, is much easier under a neutral corporate brand. Core businesses are no longer stable over generations.

Regardless of the undeniable tasks of a corporate brand, the question of proximity to the core businesses and brands is one that needs to be constantly evaluated. Using awareness alone as a benefit falls a little short of the mark.

What do you think?

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