Martin Bishop, Author at Branding Strategy Insider - Page 3 of 6

Despite its continuing popularity, mergers and acquisition (M&A) has a terrible track record. Reviews find that the chance of an acquisition increasing shareholder value is no better than a flip of the coin.

A solid brand architecture strategy can significantly improve the odds of acquisition success. Given that the odds are no better than 50/50 (based on analysis of how many past acquisitions increased shareholder value), companies should make sure they have their brand architecture ducks in a row before they join the impending stampede to buy companies or brands.

Brand architecture often comes down to an evaluation of tradeoffs. In my experience, there’s rarely a cost-free benefit or a no-foul cost. That’s why I have found the concept of brand value so helpful. It focuses on the net effect of an initiative — are the benefits worth more than the costs of getting those benefits or are cost-saving initiatives doing more harm than good?

The job of a brand architect can be compared to the job of a closet organizer, and by that, I don’t mean someone who organizes in secret, I mean an organizer of closets. Both jobs bring order to chaos, throwing out anything that’s no longer useful and developing a system for keeping things in check and off the floor. Let’s explore this analogy. What guidance does it gives us about when you should be assessing...