Specialization and Commonalization in Multi-branded Manufacturing Corporations

Learnings from Automotive Industries

Christer Karlsson, Martin Sköld

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

Purpose: The 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/approach Three 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. Findings: The 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/implications: This 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 implications: The 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/value: Previous 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.
Original languageEnglish
JournalInternational Journal of Operations and Production Management
Volume38
Issue number1
Pages (from-to)67-89
Number of pages23
ISSN0144-3577
DOIs
Publication statusPublished - 2018

Keywords

  • Commonalization
  • Manufacturing corporations
  • Specialization

Cite this

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title = "Specialization and Commonalization in Multi-branded Manufacturing Corporations: Learnings from Automotive Industries",
abstract = "Purpose: The 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/approach Three 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. Findings: The 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/implications: This 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 implications: The 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/value: Previous 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.",
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Specialization and Commonalization in Multi-branded Manufacturing Corporations : Learnings from Automotive Industries. / Karlsson, Christer; Sköld, Martin.

In: International Journal of Operations and Production Management, Vol. 38, No. 1, 2018, p. 67-89.

Research output: Contribution to journalJournal articleResearchpeer-review

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