Managing brands during acquisitions: an empirical study of Ford Motor Company and Volvo Car Corporations

Abstract: The globalisation has lead to an increasing importance of branding in
creating competitive advantages for companies. During the past decade an
increasing number of companies have undertaken acquisitions of established
brands as an alternative to building new brands. The purpose of this thesis
is to gain a better understanding of how brands are managed during
acquisitions. Two case studies were conducted, using a qualitative research
method, at Ford Motor Company and Volvo Car Corporation in order to study an
acquisition from the perspective of the acquiring company as well as the
acquired company. The study shows that motives for brand acquisitions are
based on the fact that they are more effective than building new brands as
well as opportunities to create synergy effects. Furthermore, very few risks
were involved due to the strength of the acquired brand. Finally, strong
brands do not require rebuilding strategies to the same extent as weak
brands. It is also of great importance to manage different brands in a
portfolio separately to maintain their distinct identity.