ABSTRACT

A Case study on the active device of collaborative brand strategy of small and medium businesses

Jong-gab Kim

Dept. of Small & Medium Business Management

Graduate School of Business Administration

Han Yang University



Both national and international business circumstance have been drastically changed by market globalization, diversification of consumer' s demands, specialization of business category and technical renovation. It asks Korean small and medium businesses to be more spontaneously capable and competitive to go through the age of limitless competition. However, it could be on inefficient strategy for small and medium businesses with vulnerable capital capacity to wait to get all the competitiveness to be adjusted to this kind of market atmosphere, considering the high demand on management speed and flexibility.

Therefore, a number of small and medium businesses have come up with Joint Brand strategy as a breakthrough to carry out cooperative low-cost, high-efficiency technical specialty of individual participants. Joint Brand strategy can contribute to increase the brand recognition to wider range of consumer levels and make securing sales channel easier by decreasing investment and sales cost at the beginning of market opening up and products differentiation and diversification created by specializing techniques and sharing market information based of cooperation and allotment amid companies and confrontation of speed and flexibility on market demand.

In addition, Joint Brand strategy makes it possible to cope with unfair price discount and transaction custom by conglomerates and OEM manufacturers and activates local economy by granting local small and medium businesses their own brand instead of simply being a subcontractors. It can bring tremendous influence into market and synergy effect in the various categories such as technique, supply, production, sales, etc by being developed to strategic association amid companies that gain the superiority of competition by means of supplementing mutual weak points with strengths of each company. Recently, increasing number of small and medium businesses have carried out Joint Brand being surrounded by slow domestic demands and economic deflation. Joint Brand has been extended to improving public image, creating employment, securing tax revenue of specialized industry in order to increase sales channel and strengthen competitiveness of small and medium businesses. Generally it hasn' t been activated enough since established, obstructed by financial difficulty, lack of managing capability, conflict among members and lack of governmental policy establishment.

It has been analyzed that synthetic counter measure and renovation are needed in order to execute the establishment purpose to strengthen competitiveness by applying own brand, that has been interfered with slow sales performance.

Therefore, this research collects information about execution status of Joint Brand based of local governments, concerned organizations and enterprises, organs of expression and internet investigating and comparing local management status. In addition, representative Joint Brand examples (TEZROC, CHIMERIC, GABORO) have been compared and analyzed in terms of brand concept, management style, marketing strategy, strengths and weak points to create rational management model in each establishing and developing stage.

Moreover, it has been purposed that practical business embodiment by focusing on capability and competitiveness of businesses strengthened by both basic and specific strategy with an aim of higher efficiency to find counter measure of Joint Brand activation. The strategic direction of Joint Brand can be researched as following, based on organic and synthetic supporting counter measure mutually linking charged authorities to systematically support with governmental financing, taxation, hard infra and software.

First, managing style focusing on independent companies participating to develop and manage Joint Brand. For beginning stage, managing style run by local government or association should be necessarily adopted.

Second, Non registered committee consisting of systematic portion of participants, experts in various fields, representatives from civil organizations for management proficiency.

Third, strengthening marketing strategy such as hard infra system and software system to be armed with spontaneous capability and competitiveness of companies driving.

Fourth, cooperation and strategic association amid companies participating for efficient synergy effect.

Fifth, proposing legislation of¡° Special Measure Law to cultivate Joint Brand¡± and establishment of¡° Committee to activate Joint Brand¡± as counterproposal to activate governmental economic policy by synthetic and systematic supporting associating with charged organizations.

As last, this re search is hoped to be helpful to companies and researche rs planning and related to Joint Brand in actual way.

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