Tuesday, April 3, 2012

Broadening the Extent of Advantage III

...a failure in the new arena can rebound to damage the core.

Extensions based on proprietary know-how benefit from the fact that knowledge is not "used up" when it is applied; it may even be enhanced.  By contrast, extensions based on customer beliefs, such as brand names, relationships, and reputation, may be diluted or damaged by careless extension.

Although great value can sometimes be created by extending these resources, a failure in the new arena can rebound to damage the core.

ACTION POINT: Avoid careless extensions of your brand that may end up damaging your core.

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