1. What are the common aspects of each of the companies' related diversification efforts? What are the differences?

The organization adopts various business strategies to gain competitive advantage and to take the competitive edge over its competitors. Through the strategies such as diversification, the company meets the demands and preferences of its customers along with expanding their current business. Through diversification not only the company increases its market share but also enhance customer loyalty by providing the vast array of products. If the JAB holdings and VF corporation diversification efforts are analyzed than it can be seen that both the organizations have a lot of things common in their diversification’s efforts. The first thing is that they want to meet the demands of their customers by providing them variety (Turner & Jargon, 2018).

Another similarity in the diversification efforts is to compete with the competitors. As JAB Holdings has acquired Dr. Pepper’s group in order to become the largest Coffee organization in the world. Its major competitor is Nestle and it wants to give tough time to Nestle by grabbing market share. The VF Corporation with its brand portfolio also wants to give tough competition to other apparel companies in the apparel industry. Both the organization’s diversifications strategy shows that they are diversifying within their industry and rather than investing in other products. It seems that both corporations at present do not want to take the risk and want to perform activities from which they are familiar (Turner & Jargon, 2018).

The difference in diversification efforts is that the VF Corporation has more detail approach and wants to provide different products to the customers. Its acquisition of Timber indicates that it wants to provide different apparel products. If the recent acquisitions of JAB Holdings it is only focusing on the Coffee and has not focused much on other time of food & beverages (Turner & Jargon, 2018).

2.      Which of the two efforts do you expect to be more successful, in terms of strengthening the company brands and improving corporate performance? Why?

Through analyzing the diversification efforts of the JAB Holding and VF Corporation it can be said that JAB Holding will be able to achieve its desired goal that is to become the largest Coffee brand in the world. The corporation wants to beat Nestle and if JAB keeps on acquiring major players such as Dr. Peppers & Peet’s Coffee it can achieve its goal. When JAB will become the market leader it is pretty obvious that the corporation’s performance will enhance along with the profitability. On the other hand, the VF Corporation is focusing on the needs of the customers and through this will able to boost sales however its strategy is not as much aggressive as the JAB holdings strategy (Campbell, Edgar, & Stonehouse, 2011).

The JAB holdings have established a goal which they want to achieve and the corporation is moving toward achieving that goal through taking the help of diversification strategy. VF Corporation also wants to further improve its self with the passage of time, however, it is not as much focused on the goal as JAB holding is. Therefore, it is evident that the JAB holding will be able to strengthen its brand and will able to improve its performance more efficiently than the VF Corporation. VF Corporation has a strong brand portfolio and if the corporation develops a specific goal than it can also enhance its performance over the period of time. Today the competition in the market has increased up to a lot of extents and in order to sustain in the market, it is important that the direction of the company should be clear (Campbell, Edgar, & Stonehouse, 2011).

References

Campbell, D., Edgar, D., & Stonehouse, G. (2011). Business Strategy: An Introduction (3 ed.). Palgrave Macmillan.

Turner, Z., & Jargon, J. (2018). The Secretive Company That Pours America’s Coffee . Retrieved from https://www.wsj.com/articles/the-secretive-company-that-pours-americas-coffee-1520440633?mod=searchresults&page=1&pos=1