You are operating a medium-sized company of medium size and have been marketing your products using the corporate brand strategy. This strategy serves your company well; all of your products are of good quality and the umbrella brand saves you time and resources.
As your business expands, the problems start. Diversification is the basis for
expansion, but it does not work well with the corporate brand strategy. It
becomes more and more difficult to maintain consistent quality across your
family of products. Inconsistent quality will result in damage to the brand as a
whole. Switching to another brand strategy, however, will involve high costs and give your competitors a chance to steal your customers.
If you can overcome this expansion hurdle and successfully diversify into at least
50 product types while achieving an annual revenue of at least $2 billion and an
operating profit margin of 30 percent within 30 years, you will get 100 bonus points.
