Brand Portfolio and Over-Supply

Abstract

Firms operating in over-supply conditions cannot increase their sales not even through the price reduction as a lever. In such context the intangible assets become predominant and tend to direct the competition within different industries towards new, unstable competitive business models based on market-driven management. In fact, the firms have reconsidered their brand portfolio, often by intervening drastically on the number of brands possessed and selling some of them to third parties or, alternatively, abandoning taking into consideration strategic aspects of brand management and its costs. At the business unit level, the brand portfolios are subjected to numerous operations oriented to adapt supply to new competitive conditions.