Question

A well-defined brand strategy is significant for firms with expansion goals. Also, a strong brand could be a powerful tool for a competitive edge to large or small companies.

• With this in mind, list four benefits of a strong brand to business organizations.
• We live in an ever-increasing globalized society. Reflect on the challenge of global branding.
• What are the benefits of globalizing a brand?
• What are the unique challenges to this type of branding and in your opinion, which areas of the world pose the bigger challenges and why?

Answer 1

The benefits of a strong brand business organization;

-effective positioning in the market

-more sales

-ease of globalizing

-closer customer relationship

The challenges of global branding include financial resources and complex scope.

Benefits of globalizing a brand;

-large market share

-strategic advantages

Unique challenges to this type of branding are sustainability and changes in technology.

The areas that would pose bigger challenges include tax issues and foreign exchange risks. They would affect the profits of globalized brand.

Explanation:

The benefits of strong brand business organization;

-effective positioning in the market-a strong global brand would be effectively positioned the global market. This guarantees it competitive advantage.

-more sales-customers would easily identify with the brand resulting in more sales globally.

-ease of globalizing -a strong brand would easily globalize as the quality products or services would easily succeed in foreign markets.

-closer customer relationship-the consumer generally associate with the best brands. The brand can maximize on customer relationship by creating loyalty and reward programs.

The challenges of global branding include financial resources and a complex scope.The global branding demands for huge financial resources. The financial resources would be used to develop retail outlets in different countries globally.Financial resources would also be needed to carry out adverts or promotions to create awareness on the brand. In addition, the complex scope exists in global branding as the firm develops strategies to serve different cultures.

Benefits of globalizing a brand;

-large market share-the globalized brand will have access to millions of customers globally which would increase on its sales.

-strategic advantages-strategic advantages that can be realized are the technological transfer, shifting production to low cost regions and also partnerships with global firms.

Unique challenges to this type of branding are sustainability and changes in technology.Sustaining global branding is a major challenge. This is because the global markets are very competitive and new firms would emerge with similar or related brands.The company is also expected to conform to the changing technology in order to remain relevant as a global brand.

The main areas that would pose bigger challenges include tax issues and foreign exchange risks. The firm would face taxation risks in different countries. Similarly, the volatile foreign exchange markets can affect the company earnings. The exchange rate volatility and taxation issues can reduce the profits that the globalized brand would realize in a given year.