Specialization and commonalization in multi-branded manufacturing corporations

Abstract

PurposeThe purpose of this paper is to identify areas and issues for management to consider in balancing specialization and commonalization in large manufacturing corporations with multiple brands from a strategic R&D and manufacturing point of view.Design/methodology/approachThree global manufacturing corporations from the automotive sector are used as a strategic sample composing three sequential clinical research projects. The data come from complementary data-gathering methods combining documents and interviews and workshops with top executives, project leaders, platform managers and product brand managers, thus enabling triangulation.FindingsThe study shows that managing manufacturing corporations with multiple brands is not just on a scale between full specialization and full commonalization but instead has its own logic of categorizations and portfolio formations. In order to develop the value of the brand portfolio, management must simultaneously embrace and address a number of highly integrated corporate values and highly differentiated brand company values.Research limitations/implicationsThis study contributes primarily by relating economy of scale in relation to the need for differentiation of products and brands that have different values, customers and market positions. A model for balancing commonalization and specialization provides several opportunities for further research and development; however, generalizations are issue and context specific.Practical implicationsThe critical issues in balancing how to deal with specialization and commonalization in a company with multiple brands are explored and summarized in a framework for the practitioner to use in analyzing a real situation.Originality/valuePrevious literature focuses on the maximization of synergies within one brand, missing the specific dynamics of large manufacturing corporations with many entities, such as individual products and brands. This paper adds knowledge regarding how to balance synergies from commonalization with important objectives to preserve the specialization and distinctiveness of each product brand.