Benefits of Developing a Brand - Essay Example

At the start, the business focused primarily n trade export, selling dried Korean fish, vegetables, and fruit to Manchuria and Belong. It took a little more than a decade Samsung would have Its own flour mills and confectionery machines, Its own manufacturing and sales operations, and ultimately evolve to become the modern global corporation that still bears the same name today. Samsung-which means “three stars” in Korean ; comprises numerous subsidiaries and affiliated businesses, most of them united under the Samsung brand, which is the largest South Korean business conglomerate.

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Diversify Samsung Electronics America, Headquartered in Ridgefield Park, NJ, Samsung Electronics America (SEA) is a wholly-owned subsidiary of Samsung Electronics Co. Ltd. Notable Samsung industrial subsidiaries include Samsung Electronics the world’s largest information technology the company was measured (in 2012), Samsung Heavy Industries the second largest shipbuilder (in 2010), Samsung Engineering, and Samsung C (construction).

There are quite a few more branches on the Samsung brand tree, these include many diverse subsidiaries the companies are: Samsung Life Insurance, Overland Resort (the oldest theme park in South Korea), and Chill Worldwide an advertising agency. SEA is comprised of the Consumer Business Division (CB) and the Enterprise Business Division (BED). Samsung Electronics shares a location with our North American headquarters, which oversees Samsung Telecommunications America; Samsung Semiconductor Inc. Samsung Information Systems America; and Samsung Austin Semiconductor. Benefits The benefits of using the same brand for different products Is also called brand extension, This strategy consists In using a current brand name to launch a product In a category considered as new territory for the company-according to Asker (2004) This strategy of brand extension can be very efficient for companies to reach new consumers and penetrate new markets.

However, a company has to be careful when using this strategy because It can, for example, weakened the Image of the mall brand, If the extension does not live up to the brand name quality It can hurt the company as a whole. The benefits to licensing are: You can have all companies fall under one main umbrella, which is great for, tax breaks, incentives, lower costs, patient protection and of course the brand name. As you can see the benefits of evildoing your brand, extending your brand, and having them under one licensing are many.