Offensive and defensive between the buy-out of the way the brands market expansion.doc

 PAGE \* MERGEFORMAT 11 Offensive and defensive between the buy-out of the way the brand’s market expansion [Case] The operation of a trade company in Shaanxi, a well-known local brand, a buy-out brand, due to intense competition, although in 2004, began to work. In recent years, Shaanxi province’s main operating markets, overseas markets are also some running, but the intensity is not too great, there are always some take into account the fear that outside the province and the province can not take into account the market, fear trade-off. However, if we achieve a breakthrough, provincial market development is essential, and the provincial market, buy the brand to other products, competition has become increasingly fierce. The company is in a crossroads of development, how to adjust the company to adapt to such a strategy? How to do what preparation work? Currently, China’s fast consumer goods market is fiercely competitive, all brands, all grades, all packaged products and diversified. Follow the well-known economist Lang’s words, China’s current investment opportunities exist in the market is so limited, most of the industry is to repeat, low-level competition in the state. A high degree of competition leads to lower corporate profits, companies want to break the bottleneck size, profit bottleneck is how hard things were. Particularly in some relatively low barriers to entry, exit barriers are not particularly intense competition in the industry, such as the now popular brand buy (or 0EM) mode industry. In this case a trade company in Shaanxi Province (hereinafter referred to S Corporation, the same below) is in such a highly competitive industry. S company’s early adoption of the brand agency or brand buyout, in the province to open up a number of markets, and achieved some good results, but with the marketing From EMKT. environmental changes, S corporations have emerged ‘in the province to face fierce competition, wish or be forced to expand into other