Neck & Neck Business Strategy

The elements that helped in the success of "Neck & Neck" are the following:

- Create a brand image. It's very important to consolidate the brand. The "Made in Spain" brand had an important position in the international market, so it was very important to achieve a new brand positioning. "Neck & Neck" is an exclusive brand for children. "Neck & Neck" is recognized under the brand name "Made in Spain"

- Professionalism. Since the Zamacola family took over the management of "Neck & Neck", the company began to have continuous growth. This is due to investing time and energy into creating an efficient and professional team. Although the previous management had an adequate business strategy, they had an overall inefficient management team. The new administration is focused on being professional in every aspect of their business.

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- Brand Franchise. "Neck & Neck" established a new plan to grow and expand the business globally. The new strategy included the creation of franchises. Each new store is expensive so the franchise is a strategy to reduce the economy impact. Also, the franchises will help introduce the brand in the international market.

One of "NECK & NECK" goals is to become a major supplier of children's clothing.

Do you think they have taken the right decision about their internationalization strategy?

Internationalization is a very important strategy for "Neck & Neck" growth. Certainly, the foreign franchises provide information about the culture, preferences, and prices of each location. This information helps to establish the design and product strategy. Each place is different. It is recommended that the businesses be managed by local people. The internalization of "Neck & Neck" give a competitive edge to the company. Franchisees provide information needed to make decisions regarding distribution, production and marketing. Also, according with the General Manager, "Neck & Neck" uses a portion of it's cash flow to invest in foreign stores. This way, managers can learn about the market of each location and how manage it.

Analyze "NECK & NECK" internationalization strategy. Do you find their expansion

To choose the right place to introduce a new location, "Neck and Neck" takes cultural affinity between the new consumers and the "Made in Spain" consumers into consideration. The market segment will be the same - sophisticated people want their kids to wear great clothes. The product is targeted to people that are looking for new and unique children's clothing styles.

Which expansion model do you think NECK & NECK should follow in the future: company owned points of sale, or franchising? Which advantages and disadvantages does the second have with respect to the first one?

The franchise strategy established by "Neck & Neck" has been positive. Therefore, "Neck & Neck" should continue with this plan or establishing excellent management and a rejuvenated brand positioning. However, taking in consideration the success of the trade mark, the company should consider points of sale to expand the brand all over Spain. In fact, the enterprise made a strategy alliance with the Corte Ingles to expand the brand in Spain and Portugal.

In any case, the franchise strategy is a priority and thanks to global brand recognition the company will continue to expand internationally. Franchising is the best strategy. The development of franchises will reduce "Neck and Neck's" dependence on the Spanish market and be in a position to open new global markets in Asia and Latin America.

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