Keep your head cool
When you hear the name Daikin, you immediately think of air conditioning. This legendary brand has pioneered air conditioning solutions worldwide, becoming a benchmark in the cooling equipment industry. But what happens when Daikin decides to acquire a heat pump brand?
The Dilemma in Mergers & Acquisitions
Daikin acquired Altherma, a company specializing in heat pumps. With each acquisition, the question arises as to which integration model is most appropriate. There are four distinguished integration models: the Absorption model, the Symbiosis model, the Confederal model, and the Federal model. Each model offers different benefits and challenges depending on existing and future brand identities.
Two Crucial Questions
Before choosing an integration model, ask yourself two key questions:
- As a brand, what do we want to retain from the existing identities?
- Which brand equity is built the strongest? Do we want a shared future and do we want to translate it into a new identity?
Strategische Dilemma's van Daikin
When Daikin acquired Altherma, they faced a number of strategic dilemmas:
Should Daikin's DNA be revised? What happens to the current positioning? Altherma functioned almost as a separate corporate brand. Would a Confederate model be preferred? How do we deal with possible future acquisitions?
Remarkable’s Strategic Audit
Daikin enlisted the help of Remarkable for a strategic audit. Remarkable examined the brand's growth trajectory and international presence, organized brainstorming sessions and negotiations with stakeholders. This took into account Daikin's unique culture, which is a mix of Japanese and European influences.
The Japanese culture within Daikin stands for guarding brand unity, while the European culture focuses on strategy and development. This combination required a careful approach to defining brand strategy.
Daikin's New Proposition
With a thoughtful approach, Daikin transformed its proposition from a focus on air conditioning to a broader focus on climate control, which includes both air conditioning and heat pumps. Daikin's new proposition reads: Daikin Climate Control.
Future Proof
With this mission, Daikin cleverly responds to the sometimes unpredictable climate and offers products for all temperatures. This makes Daikin future-proof and prepared for further growth.
Brand Strategy as a Cornerstone
Daikin's story shows that brand strategy is not just an "add-on," but a cornerstone of successful mergers and acquisitions. By putting strategic brand development at the center, a brand can not only survive, but thrive in an ever-changing marketplace.
Daikin's success story serves as an inspiring example for companies facing the complex dynamics of mergers and acquisitions.
If you want to learn more about Daikin's case, read more here!