The Art of Corporate Strategy: Building Brand Equity & Diversification
Major Points of the Article
High Brand Equity can allow a business to grow more easily by diversification
Diversification is a form of Corporate Strategy and should be considered to create sustainable growth
Differentiation is important to create a higher preference for your brand over your competitors.
Corporate strategy is a complicated field that many people don't understand. This blog post will help you gain an understanding of corporate strategy and how to apply it in your business. We'll discuss what it is, why it's important, and some tools for building brand equity and increasing your company's growth potential!
In the corporate world, strategy is all about how to best position your product or service in the market with a specific target audience. It can include topics such as pricing strategies, marketing campaigns and promotional offers while also planning for an exit should that be necessary at some point down the line. There's more to it than just deciding on which products or services to sell.
A company's strategy can also be related to how they're going to position themselves in the industry and what their goals are. A good example of this is Google, which has decided that its goal is "to organize the world's information". By doing so, they've introduced some major changes including free apps like Gmail for emailing and swapping.
When it comes to a business's brand equity, it can be the most powerful component of a business. Strong brand equity can allow a business to sell new products or services with ease by simply adding its logo to the item. This is because the brand already comes with an established customer base that trusts that the products or services are not only quality but they're also something the customer base is interested in.
If we look at the Apple corporation, it firstly started with the product "Apple I" back in 1977 and since then it has been growing significant brand equity to now be able to sell a diverse range of products in the tech space. Products such as smartphones, personal computers, tablets, wearables, accessories and a variety of related services. From this high brand equity and corporate strategy they have been able to become one of the leading corporations in the world.
The modern corporation is also looking to have a lasting impact on consumers. Differentiating from other companies in the space aims to create a higher preference for your brand over your competitors. Considering Apple again, it has built its corporate strategy around product quality with an emphasis on customer satisfaction by ensuring they can produce what people want while building company value through branding. Differentiating has helped Apple and will help in your own business to build sustainable growth.
Essentially high brand equity makes it easier to diversify your business and build/create a corporate strategy that can have continuous business growth opportunities.
There are 6 elements of brand equity to consider: Brand Awareness, Brand Association, Perceived Quality, Brand Experience, Brand Preference, and Brand Loyalty. Each should be considered when building brand equity.
How is your brand equity? Find out your Brand Equity Index with our Brand Equity Calculator. If you scored above 9.5 you could be ready to start your corporate strategy journey, and if it is below, building brand equity should be your focus.
What did you score? Do you need help?
Within Paradelta Strategy, we provide a tailored corporate and/or business growth strategy to grow your business, along with brand equity building through our marketing campaign management services and more... To get assistance with your business, simply email us at hello@paradeltastrategy.com.au or schedule a no-obligation discovery call here.
