Karma: Difficult Choices of Matching Brand Marketing and Channel Management after Rebranding
This case intends to discuss the gap generated between brand and distribution channel strategy arising from rebranding. The case company, Karma Medical Product Co., LTD., is well known for its revolutionary lightweight aluminum alloy wheelchairs. The early years Karma did not adopt OEM and cost-leading business model. Instead, the company established its own R&D department, independently developed and designed lightweight wheelchairs and sold these wheelchairs overseas with the established label “Karma”. Over the past three decades, Karma has gone through the hardship in the initial stage, barriers to the entry of global market, the counterfeit goods attacks and grown through “outstanding R&D ability” and “brand marketing”.