Monday, December 18, 2006

Industry news: Jungheinrich is pursuing a single-brand strategy

Jungheinrich is pursuing a single-brand strategy and, by the end of October, had phased out the Multiton brand. (read here) Well, this is just fine. As shown in the case analysis, brand factor is one of the key successful factors in warehousing segment. Multibranding dilute the main brand and as a result the kompetiviness is tanked. Thus, keeping one brand is vital for Jungheinrich.

Kion Group - operates in all segments: warehousing equipment and lift trucks. The brand weights differently for either of markets. In lift truck segment, brand is less important comparing to price. the challenge for Kion is either follow single brand strategy to improve its warehousing equipment performance, or to follow multibrands to stay competitive in Lift truck market. Either way will improve performance in one market and affect in other. So..??? There is no KION brand. There is a bunch of brands (Linde, STILL and OM ) collected under one umbrella. Result? (see P.S. below) None of its brands will benefit from that. They are all too different. So... What is Kion Group? walmart in equipment? megastore? if yes, follow the low cost strategy and forget about brand factor.






When partners can't agree

Their dealings come to naught

And trouble is their labor's only fruit.
____________
Once Crawfish, Swan and Pike
Set out to pull a loaded cart,
And all together settled in the traces;
They pulled with all their might, but still the cart refused to budge!
The load it seemed was not too much for them:
Yet Crawfish scrambled backwards,
Swan strained up skywards, Pike pulled toward the sea.
Who's guilty here and who is right is
not for us to say-
But anyway the cart's still there today.


0 comments: