AUTHOR
Forberg, Jenny; Johansson, Linda

DATE
2000-09-20

DEPARTMENT
Business Administration and Social Sciences / Industrial marketing and e-commerce

SUMMARY
The globalisation has lead to an increasing importance of branding in creating competitive advantages for companies. During the past decade an increasing number of companies have undertaken acquisitions of established brands as an alternative to building new brands. The purpose of this thesis is to gain a better understanding of how brands are managed during acquisitions. Two case studies were conducted, using a qualitative research method, at Ford Motor Company and Volvo Car Corporation in order to study an acquisition from the perspective of the acquiring company as well as the acquired company. The study shows that motives for brand acquisitions are based on the fact that they are more effective than building new brands as well as opportunities to create synergy effects. Furthermore, very few risks were involved due to the strength of the acquired brand. Finally, strong brands do not require rebuilding strategies to the same extent as weak brands. It is also of great importance to manage different brands in a portfolio separately to maintain their distinct identity.

ISSN 1404-5508 / ISRN LTU-SHU-EX--00/233--SE / NR 2000:233