Introduction
The Fixer Upper television program expanded the Magnolia brand to the outside population away from Waco, Texas. Its founders, Joanna and Chip, had started it from scratch after venturing into the house flipping. After making profits from the first home, they invested in several other businesses leading to the brand growth. The brands are constantly exposed to external and internal factors affecting how the vision is fulfilled. With it offering a range of services, it has a broad reach of consumers. Magnolia brands face competition from other companies and internal and external challenges that affect its growth, including the termination of the television program; the brand has its strengths and weaknesses.
Internal and External Environment of Magnolia Brands
Impact of the External Environment and the Competitors
Magnolia Brands’ mission targets doing efficient work that the clients will appreciate. The components of the environment likely to impact the brands’ ability to realize its vision include competitors, customers, the economy, and the government. Customers are the most critical component of any organization’s success hence the need to attain customer satisfaction. The business will fail when the government increases taxes, but introducing incentives and subsidies will boost company growth. The economy can affect the company in that when it is stable, the brand thrives, but upon fluctuations, losses are possibly attained, thus affecting its stability in the market (Duan et al., 2020). The company will improve its service provision with competition by maintaining high standards. It will enable the brand to realize its vision by providing excellent service to its clients. Magnolia brands face competition from other companies offering similar products and services. The major competitors to the brand include Martha Stewart, Rachel Ray, and Pavillion. They provide similar services and products that Magnolia brands offer.
Factors Affecting Growth and the Internal Causes to Consider
The growth of the brands is affected by the external and internal factors that emerge. Its success heavily relied on the fixer-upper television program. After its end, the founders need to look for alternative ways to market the brand, which is not an easy task. There were several instances where the magnolia market lacked ample parking space, which affected customers leading to disloyalty. Internal factors are those that exist within and are controlled by the business. Essential elements the brand needs to consider include workers, shareholders, structure, and organizational culture (Bashir & Verma, 2019). Workers possess different qualities and skills and play an essential role in realizing a goal. Shareholders will provide additional funds when they buy shares and have some patent ownership. A good organizational structure and culture will result in proper planning toward attaining the primary goal.
Strengths and Weaknesses
The brand’s strengths include its Fixer-Upper marketing advantage. It has strong financial results; the five-aired season of Fixer Upper produced more than 2 million dollars in revenue (Brunson & Reed, 2018). The local town receives close to thirty thousand visitors weekly due to the brand’s exposure (Brunson & Reed, 2018). It has other businesses under the umbrella brand providing additional revenue. Magnolia Brands’ experienced some drawbacks, including its revenue loss due to the cancellation of the Fixer-Upper program. There is an over-reliance on a single location to conduct business. Managerial expertise is also challenging; the owners lack a neutral manager to oversee the industry.
Impact of the New Show and Potential Challenges Likely to be Faced
The canceled Fixer Upper television program allowed viewers to witness the transformation and remodeling of houses. The new show exposes viewers to unique remodeling techniques that make better-looking homes far more affordable than a newly built one. As the Gaines will take us through the steps of a house makeover and the design, it opens up a new platform for real estate and interior design ideas. The potential challenge the brand will likely encounter is a lack of viewers. Currently, people prefer accessing films at the time of their choosing and not the ones timetabled by television channels. The rising competition could also limit the number of those viewing the program; low viewers result in low revenue.
Measurements of Success and Ability to Remain Productive
Identifying if the new show is successful requires the use of research techniques. The brand needs to evaluate the number of viewers, subscribers, and followers. A higher subscriber and follower number increases the chances of having more views. The individuals who follow the channel and those who have subscribed are likely to interact with the program. If the numbers are low, then the success rate is low. It is easy for Magnolia brands to continue to be successful in Waco, Texas. The company has already established market domination by providing several services and products. With the introduction of the new show, the exposure will continue, and the brand will receive revenue from the aired shows. The funds acquired can be used for additional investments increasing its growth, thus being more productive.
Conclusion
Magnolia Brands are dominant in Waco, Texas; it started as a remodeling company where old houses were bought, renovated, and sold at a higher price. It targets to provide quality service to its clients despite facing competition and other internal and external challenges. The brand needs to consider factors including competition, business structure, and workers, as they can influence growth. The impact of the new show is likely to be massive, as the loyal viewers of the previous program are likely to continue watching. The company can adopt followers and viewer counting strategies to determine the new show’s success.
References
Bashir, M., & Verma, R. (2019). Internal factors and consequences of business model innovation. Management Decision, 57(1), 262-290.
Brunson, R., & Reed, M. (2018). Fixer upper: Expanding the Magnolia Brand [pdf] (pp. 51-55). Web.
Duan, Y., Cao, G., & Edwards, J. (2020). Understanding the impact of business analytics on innovation. European Journal of Operational Research, 281(3), 673-686.