BRAND DRIVEN GROWTH: CASE AMER SPORTS CORPORATION IN THE SPORTING GOODS INDUSTRY

Abstract

Brands have increased their importance in recent years due to various aspects. In the absence of a comprehensive theoretical framework for the phenomenon of brand driven growth, in this thesis the phenomenon is investigated using a case study as research strategy. Sporting goods industry is a highly competitive and growing, but also maturing industry, which provides a fruitful platform for investigating the phenomenon. Within the sporting goods industry, the case company Amer Sports Corporation is an atypical case, which enables more information to be revealed, because it activates more mechanisms and more actors in the situation studied. The company has a wide portfolio of brands, which enables better targeted offering to each relevant market segment and establishment of a differentiated and authentic brand positioning for each brand. The case company and its business environment are profoundly analyzed through four layers: macro-environment, industry, competitors and markets, and organization. In the context of the thesis the phenomenon of brand driven growth is investigated using multiple viewpoints during the iterative research process, and the main focus is specified as financial aspect of brand driven growth, including brands’ impact on both company’s financial performance and shareholder value, i.e. the process how customer value is translated into shareholder value. As a result of the identified points of convergence of the findings, and theoretical approaches and frameworks used in assessing possible elements of brand driven growth, a framework for the phenomenon has been created, and it serves also as a platform for future research efforts and development of the framework towards a general theory. Brand valuation is a core theme of the framework, and the respective process and its outcomes can be used in an ongoing form in investor relations communication and brand management, and as a tool of strategic control systems to create additional value for the organization and its shareholders besides the common use in acquisitions. Current brand valuation methods are based on single-brand approaches, although multi-brand portfolios are increasingly common. During the research process, a need for further research related to brand portfolio valuation methods was identified.