Brand Acquisition Advantages
Brand acquisition can be defined as controlling or acquiring an existing brand offered in market by another firm. The practice of brand acquisition helps a firm to highlight itself in a well established market and taking control over the functioning of the processes, which builds the brand.
A brand refers to the renowned ownership of a firm to a specific product. This gives an advantage to the company acquiring a firm or product with events like viral marketing, so many people can talk about it for a particular duration of time. This helps to highlight their presence in the market and to be introduced as the new owner of the brand.
A company can acquire a brand in many ways, either acquiring the ownership of the company or acquiring the brand name of the company. Acquiring the ownership of the company earns all the assets related to that brand including the brand name, logo, management team, distribution network etc. Company ownership falls under this category, when a company purchases another brand including all the tangible assets.
Another type of brand acquisition acquires only the brand elements like name, logo and other intellectual rights or assets like the technical specification and details, market knowledge etc. Not all the assets are acquired by a company in this category but a few important ones.
Brand acquisition can be profitable for a software development company for its portfolio expansion or providing growth opportunities in the new market scenario. A number of parameters need to be studied before deploying any brand acquisition strategy. Some parameters like:
• Market configuration, need to be studied before approaching to acquire a brand name or company. Study for market structure and its implications on business development and progress probability should be analyzed earlier.
• Market concentration, helps a firm identify the focus of the market trend on the firm they want to acquire like if market is really interested to deal with the company owning the brand. Market patterns should suit the development possibility of the business.
• Competition is that parameter which helps a firm to identify their chances of survival with their current system and its management.
• Domain knowledge or experience helps a business to quickly understand and adjust with the dynamics of the current profile of the brand. If a company acquiring a brand does not have sufficient knowledge about the domain, there are chances that acquiring the brand gives negative results to the business.
There are other factors also which help a company to strategically improve their brand acquisition decisions. The above mentioned are some key points to take care of.