Identify and Provide the Theories that are in the Market………………
Part 1: The article
This article has been authored by Bill Merrilees, at the Department of marketing inGriffithBusinessSchool,GriffithUniversity. The title of the article is “A Theory of Brand-led SME New Venture Development”. The author is a professor of marketing and also a head of department at the same university. His research interests range from SMEs, branding, strategy and retailing. The journal name is “Qualitative Market Research: An International Journal”, year 2007, the volume number is 10 issue number 4. The page numbers for the article is 403 – 415.
The article’s purpose is to make one understand the importance of branding in the facilitation of the development of small businesses and other new ventures. The paper uses a conceptual approach to aid in the understanding how new ventures are branded. The paper also includes a model that has eight propositions which have been developed and further validated by the use of 10 case studies that do exist from exceptional entrepreneurs. The findings of the paper were that the propositions that were proposed for branding assist these small businesses to be able to create new ventures.
The article mainly focuses on branding especially in Small and Medium sized Enterprises. The development of the paper is based on the fact that there has been little research done on the implications that branding has on these small and medium sized enterprises. This is done by switching the focus from the existing small and medium sized enterprises to newer small and medium sized enterprises ventures. The method and processes used to develop the theory of brand led small and medium sized enterprises new venture development are qualitative and concept development which is based on literature that has already been published. Eight positions have been developed by the use of this literature. Ten case studies are also used within the paper to illustrate positions that the paper has on the theory, with all the propositions being supported. The cases presented are aimed at making the propositions more applicable, and they even suggest that they be grounded more into the practices of entrepreneurship. There are extensions of the theory being inferred from the case studies that are presented within the article. The findings of the article’s research is that brand led modelling is in most cases relevant only to the entrepreneurs who are highly aspiring in seeking ventures that are highly performing.
The theory which is referred to as brand – led new venture development which suggests that the brand is the main and pivotal point of the aspects of the pre launching of the products themselves. Thus the branding leads the other processes of launching the main product in to the market. The theory also states that branding in a corporate is an integrating tool that can be used in the process of the new venture being launched. The theory also states that the owner of the corporate has to be able to take responsibility for the stakeholder to be able to be a part of the brand by buying in to it. The theory also explains that the branding of a process brings creativity and discipline, not mentioning focus in to it. The theory also views branding as a filter to the recognition of opportunities. Branding is also a means of sharpening the formulation of the model of the business being conducted. The increase to new capital that can be used in ventures is also as a result of branding, according to the theory that is being discussed in this paper. The theory also suggest that branding presents an opportunity of increasing the number of customers in the early and beginning stages of the venture as well as during the final closing stages of the same venture. The same can also be applied to suppliers according to the theory, where the acquisition of access to supplies during the early and later stages of the venture will be increased as a result of branding, and so will.
Part 2: Evaluate the theory
The theory is firmly based on the concept of marketing and advertising, where the theory is referring to branding as a marketing strategy. The theory is very practical in the sense that it is being compared to a couple of case studies and it is being proven to be applicable and thus its ability to be tested in action. The theory is also based on small and medium sized entrepreneurs, and thus its scope of testability is slightly limited. This is due to the fact that it should be able to be tested on a wider scope which should not only be applicable to these small and medium sized enterprises, but also to other large corporations.
The theory has its strengths in the fact that it is based on a wide research that has been done on a couple of literatures. This makes the theory to be viable and also due to the presentation of case studies that are relating to the theory, this makes it applicable. Strength two of the theory is that it is a good marketing strategy when used appropriately, as branding is capable of presenting these small and medium sized enterprises with new opportunities for capital growth, and thus investment. The weakness of the theory is that it is not as applicable in the small and medium sized entrepreneurs as it is applicable in the case of larger companies. An example that is included within the paper is that of Virgin, and a smaller insignificant business. It is easier to identify with a brand that is big than that is small in terms of investments that the company has and how established it is.
The theory is limited on relying on readings that are conceptual in modelling. The case studies that have been used are also narrow in terms of the domain and the literature that has been used. The paper is also testing a theory while a paper is usually only supposed to propose a theory. Quantitative research is a far much better way of assessing a theory as opposed to testing it. There is a need to do further research in the future with regards to this theory that is being proposed within this article. One of the main advantages of doing this type of research is that it would test the theory in a broader sense and also its performance in the sense of it being applied as a new venture. The brand led approach is also a theory that is hard to come by in most literature and thus finding case studies to support the theory can be relatively difficult.
One thing that can be done to improve on this theory is to facilitate a deeper research in to the theory of brand led ventures with more focus on larger business, so as to be able to expand its applicability and practicability. The theory can also be improved by adding in major known phases of venture development which have not been included in eth original article as well as incorporating advertising and marketing strategies within the theory. This will give the theory of brand led more strength in the sense that existing the theories being merged and incorporated in to this will make it more practical. Finally the testing of the theory in holistically terms could also aid in the sharpening of the focus that the theory has and also improve its consistency as it has displayed that it is capable of according to the ten case studies that have been presented within eth article.
The article has mainly focused on branding especially in Small and Medium sized Enterprises. The development of the paper was mainly based on the fact that there has been little research done on the implications that branding has on these small and medium sized enterprises. This was done by switching the focus from the existing small and medium sized enterprises to newer small and medium sized enterprises ventures. The method and processes used to develop the theory of brand led small and medium sized enterprises new venture development are qualitative and concept development which is based on literature that has already been published and thus the scope of the research is limited.
Merrilees, B. (2007). A theory of brand-led SME new venture development. Qualitative Market Research: An International Journal. 10 (4), 403 – 415.
Place your order now………………..