THE IMPACT OF BRAND EXPANSION STRATEGIES ON GLOBAL COMPETITIVENESS: EXPERIENCES OF LEADING COMPANIES

Abstract

The article is devoted to the comprehensive study of the impact of brand expansion strategies on the global competitiveness of leading international companies. It focuses on three key approaches widely used in modern brand management: monobranding, subbranding, and multibranding. Each of these strategies is analyzed in terms of its advantages, potential risks, and implications for long-term brand success. The authors investigate how these approaches influence brand recognition, consumer loyalty, and strategic positioning in highly competitive global markets. To illustrate their findings, the authors refer to the practical cases of globally renowned companies such as Samsung, Sony, and Coca-Cola Company. These examples are used to demonstrate how each of the brand expansion strategies contributes to building and maintaining a company’s image in diverse regional and cultural contexts. The analysis highlights that monobranding provides a unified and consistent brand identity, allowing companies to concentrate marketing efforts and maximize the value of a strong, singular brand image. However, this strategy also presents the challenge that the failure or reputational damage of a single product may adversely affect the entire brand portfolio. Subbranding, on the other hand, offers a flexible solution by allowing the development of product lines or subbrands that are still associated with the parent brand but can cater to different consumer needs and expectations. While this helps reach broader market segments, there is a risk of weakening brand clarity if subbrands diverge too far from the core brand identity. Multibranding allows firms to diversify their brand architecture by launching entirely separate brands for different product categories. This strategy provides opportunities for entering new niches and minimizing reputational risks, but it also demands substantial financial and managerial resources. The article concludes that the strategic selection of a brand expansion model should be based on a company’s goals, resource capacity, and target audience structure. An optimal approach enhances adaptability, supports sustainable development, and improves global competitiveness under current market dynamics.