GoldenHome: The Dilemma of High-End Strategic Positioning

Since its establishment in 1999, Xiamen Golden Home Co., Ltd. (GoldenHome) had adopted a high-end strategic positioning for its professionally produced kitchen cabinets. The company had first established a high-end brand image by differentiating its service and providing consumers with the ultimate full-process shopping experience. It had then consolidated a high-end perception of its products in the minds of its target customers by continuously researching and developing new processes and selecting high-quality materials. When changes in market and competition patterns led it to expand into new home-furnishing categories such as wardrobes and wooden doors, the company worked to transform its brand to encompass the entire range of customized home products. While customers had long recognized the high-end nature of the company's kitchen cabinets, it had been more difficult to transfer this brand recognition over to the new product lines. Moreover, substantial changes in the competitive landscape had made the company's original high-end positioning ambiguous. In 2022, the company faced a dilemma about its future development: Should GoldenHome use high-level strategic changes to establish its entire series as high-end products, or should it implement differentiated positioning for different product lines, maintaining the high-end positioning of its kitchen cabinet products while positioning other product lines for mass-market consumers?

• Diversification