Has the time come for Groupe SEB to insist that Tefal should integrate its strategies much more closely with other group companies? Provide arguments for and against.
What will be an ideal response?
o Arguments for: brand proliferation creates confusion in consumers’ minds; perhaps each Groupe
SEB brand needs to be associated with fewer product categories. Duplication of energies in R&D,
production and marketing is costly and creates internal competitive tensions. Rationalisation in the
R&D and production is therefore sensible.
o Arguments against: internal competition is not always bad – it can stimulate innovation. Consumers
in each country may have preferred brands and welcome a variety of products in that brand (e.g. the
French may systematically prefer Tefal, while Germans prefer Krups), in which case each product
need a common component base, while appearances are subtly altered to reinforce each brand in its
selected markets (e.g. Volkswagen Group markets a range of essentially the same cars under various
brands, with VW and Audi particularly prevalent in Germany, Seat in Spain, Skoda in Czech
Republic).
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