Empire Building

What is empire building?

Empire building is the efforts of an individual or organization to grow in influence, power, or wealth. While organizations often scale and expand in business, empire building has more of a negative connotation associated with seeking control for its own sake.

Individuals, families, and enterprises have built successful empires through methods such as mergers, acquisitions, and carefully leveraged alliances. A growth mindset and entrepreneurial focus are also essential for successfully creating and carrying out an expansion strategy.

Media monitoring software helps companies keep tabs on their brands’ reputations as they increase their global presence. Public relations teams can then analyze data and make changes to improve their campaigns.

Methods of empire building

Empire building involves working toward expanded influence and power. On a small scale, individuals might try to make power plays at work by seeking protected information or bigger budgets for their department. On a large scale, companies build global enterprises mainly using four methods.

1. Horizontal integration: Organizations grow through merging with or acquiring competitors within their industry. For example, a coffee shop could merge with a rival cafe for a bigger share of the local market. 
2. Vertical integration: Empire building is largely about control. As the name suggests, vertical integration allows for more vertical control along the supply chain. For example, a clothing retailer could merge with a clothing manufacturer to have its own production facility, helping to keep costs low.
3. Investments: Expansion requires financial backing, both from investors and with investments. Smart global investment strategies with the help of investment firms are key.
4. International partnerships: Most organizations look to create a global presence in the process of empire building. Thinking strategically about partnering with complementary brands already popular in target countries accelerates growth. 

Benefits of empire building

Empire building sometimes makes people think of expansion for its own sake or an excess of power. But empire building can have advantages for individuals or organizations, including:

• Improved stability. Individuals who are empire building may seek prime roles on projects and opportunities as a chance to impress their supervisors and solidify their role within a company. Similarly, organizations find more stability as they expand versus their time as small start-ups.
• Increased wealth. One of the primary targets of empire building is fortune. As individuals or enterprises grow, they leverage that growth into new ways to generate wealth. For example, a motivational speaker might create books, branded merchandise, courses, consultancies, television specials, and international tours.
• Economies of scale. As companies grow, they save money on production costs. It’s typically cheaper to produce more of an item. This cost-saving adds up for large enterprises, positively affecting their bottom line.
• Recognition. While sometimes the need for fame is seen as a negative, brand awareness is extremely important for a business. Done correctly, an enterprise expands in a way that increases its reputation around the world.

Basic elements of empire building

When individuals engage in empire building within an organization, they mainly rely on a combination of soft skills, such as speaking, problem-solving, and authority. To achieve growth in influence and power, organizations have different methods to consider.

• Solid branding: Empire building is about fame and recognition. If a company wants to become a global powerhouse, it must invest in cohesive, research-based branding. The logo, colors, messaging, and other touchpoints have to be aligned to help create the company’s overall identity.
• Exceptional leadership: Strong leaders ensure the company makes forward progress. They constantly build relationships to create an essential network within their industry. This network includes people willing to do them favors, answer questions, and provide insights. 
• Clear communication: As businesses expand, they could easily fall apart without a communication plan. A combination of email, video meetings, and in-person meetings keep the lines of conversation open within the team. A strategy for sharing information with customers and shareholders encourages clear communication outside the company as well.
• Strong finances: Building an empire requires a solid grasp of the company’s financial strategy. An enterprise of this size and global reach typically has diversified revenue streams and a hefty investment portfolio.

Empire building best practices

Empire building leads to financial success and worldwide recognition. When turning a start-up or mid-size company into an empire, it’s best to follow these tips. 

• Conduct market research: A company with expansion plans should spend time researching the industry to look for trends and survey customers. This way, the company can position itself as a leader and spot gaps within the market.
• Hire out branding: Branding is essential to building a successful empire. A global branding firm has the experience to ensure that creative design and strategy work well in all markets. 
• Build systems: A large-scale operation can quickly become overwhelming and hard to manage. Analyzing the company’s standard operating procedures (SOPs) and making them as streamlined and efficient as possible must be prioritized. Companies should invest in software to automate where possible.
• Invest in a team: Having the right people in place makes expansion less stressful and more successful. Especially when one plans to grow in multiple countries, knowing strong team members share a common vision helps ease growing pains.
• Build a portfolio: Empire building involves accumulating power and wealth. Companies can invest in assets like real estate or the stock market. Over time, the money earned will serve as a financial foundation for the brand.