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A decision on whether to act as agent or create &; start your own brand; the story of this case story took place at Excelsior Medical Co., Ltd. in 2010, a company founded twenty years ago and started as trade agency. Tom, the highest ranking executive of home appliance department received a letter from the original manufacturer of Honeywell products, kaz, informing him that the agency relationship between the two parties which lasted for 15 years would soon be terminated. For so long he had been worried and it finally took place, as an agency, the threat of being replaced because of unable to accomplish the target the original manufacturer had expected was always there, and sometimes the agency relationship was terminated because the accomplishment exceeded the target through the basic outlet set up by the original manufacturer, and then the original manufacturer would terminate the agency right and establish a branch of its own in private instead. Although a replacement of agency was never a new thing, but this time, he was the one who had to deal with this problem. Through the experiences he had accumulated over these years, he came up with an idea to have a full grasp of product resources, so that the main spindle of product could be lying in the healthy appliances comprised of “air, water, and regimen.” In addition to a long-term stability strategy, he must also think of what resources of own branding in response to the current phase of a company which had been focusing on agency and B2B for years could be selected from? To take a prudent step towards success, but how? He must submit appropriate countermeasures to the general manager during the executive meeting next Friday, at the meantime, he and the chief financial officer who had a dissenting opinion must reach a consensus; on the other hand, would department colleagues, as well as cooperative dealers and distributors support his idea? With the rise of concepts of regimen and health, how to become the leading brand of home appliances in the future was the major issue, and how could he achieve the vision which gradually emerged in his mind?
The discussion of this case study is focused on operational issues a trading company encounters when it is faced with the decision making of whether to act as agent or create &; start its own brand. For years, Excelsior Medical Co., Ltd. has been dealing a vertical integration of all sorts of medical-related products, while the business of home appliances lies in the role of agency, when it is faced with the idea of development its own brand, this case study uses a modularity theory to conduct relevant aspects; and to explore the existing internal core competencies of resources remodeling based on the resource-based view; to discuss how to stimulate the customer service department to transform into B2C service and serve as a strong backup of its own brand based on the resource-based view and enterprise transformation theory. Next, to explore how to ensure a stable development for the home appliance department in the next phase and become the leading brand in the healthy home appliance industry based on the business ecosystem theory. Through the development experiences of the actual case and a combined confirmation of theories, this study wishes to provide enterprises some references regarding creating &; starting their own brands.
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