A McKinsey study shows that 90% of Asia's value creators derive more than 80% of their revenues by focusing their businesses in one industry sector. Moreover, these companies focus on intangibles like fostering human capital, exploiting network effects and creating synergies based on brands and reputation rather than investing in physical assets. Additionally, interests in diversified areas poses a great challenge as creating and managing a consistent brand personality becomes much more difficult.

The Reliance group of India is a typical example for such a diversified conglomerate with businesses in petrochemicals, financial advisory, telecommunications, and oil explorations. Though the Reliance brand is doing very well in the Indian market till now, it needs to focus on a more directed corporate branding approach. Many conglomerates from Japan and Korea face similar challenges as they aspire to build and sustain their brands and brand equity across the world.

To brand different businesses across a wide array of sectors will prove to be a resource drainer in the longer run. Especially, small and medium level firms that aspire to build strong brands but have a resource constraint will find it very difficult to carry out successful branding if businesses are highly diversified. Instead, the CEO and executive team should focus on the core of their business, and make sure the brand takes center-stage in the boardroom and becomes the most prominent driver of business strategy.