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Pressure To Invest Elsewhere

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Abhijeet S
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Pressure To Invest Elsewhere - October 11th, 2010

7. Pressure To Invest Elsewhere

When a brand is strong there is a temptation to reduce investment in the core business area in order to improve short-term performance or to fund new business diversifications.


There is an often mistaken belief that the brand will not be damaged by sharp reductions in support and that the other investment opportunities are more attractive.


Ironically the diversification that attracts these resources is often flawed because an acquired business was overvalued or because the organization’s ability to manage a different business area was overestimated.
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