How Radical Transparency Can Turn the Brand Equity Into a Basis for Sustainable Competitive Advantage

2017 ◽  
pp. 90-112
Keyword(s):  
Strategic Management ◽  
Competitive Advantage ◽  
Brand Equity ◽  
Necessary Condition ◽  
Sustainable Competitive Advantage ◽  
Scientific Thought ◽  
Intangible Resources ◽  
External Threats ◽  
Logical Sequence ◽  
Resources And Capabilities

This chapter begins with the analysis of the question whether the real sources of sustainable competitive advantage derive from the strengthening of the companies' internal strengths and eliminating internal weaknesses or are they the result of a successful manipulation with the opportunities in the environment and the avoidance of external threats. Despite the efforts of many authors to summarize the first with the latter, modern scientific thought in the field of strategic management underlines the first variant. As a logical sequence, the analysis of the intangible resources of companies and their (im)mobility follows as a necessary condition for sustainable competitive advantage. The authors analyze the idea of the brand equity as a resource which summarizes all typical resources and capabilities of the company creating and maintaining the desired competitive advantage. Finally, the analysis of the brand equity through the prism of the VRIO model is a further proof for the brand equity role as a source of sustainable competitive advantage.

Impact of Relational Capital on Business Value

2014 ◽  
Vol 13 (01) ◽  
pp. 1450002 ◽  
Author(s):  
Jose Domingo García-Merino ◽  
Lidia García-Zambrano ◽  
Arturo Rodriguez-Castellanos
Keyword(s):  
Customer Satisfaction ◽  
Competitive Advantage ◽  
Intellectual Capital ◽  
Stock Exchange ◽  
Business Value ◽  
Necessary Condition ◽  
Relational Capital ◽  
Sustainable Competitive Advantage ◽  
Intangible Resources ◽  
Spanish Stock Exchange

Intangible resources, or intellectual capital, are currently known to be the drivers of economic growth. Today's society is known as the knowledge-based society. Knowledge is the main strategic resource that is capable in itself of generating new knowledge. Therefore, intangible resources have become the competitiveness base for any company, as their ownership provides the company with the opportunity to generate sustainable competitive advantage and increases the value of the company. One of the most important dimensions of intellectual capital is the relational capital (Prahalad and Ramaswany, 2000). Relational capital is defined as the knowledge embedded in the relationships with any stakeholder that influences the life of the organisation. Relationships with stakeholders are the necessary condition for building, maintaining and renewing resources, structures and processes over time, as firms can access critical and complementary resources through external relationships. Some authors [Prahalad, CK and V Ramaswamy (2000). Co-opting customer competence, Harvard Business Review, 78(1) 79–87.] suggest that the customer has become a new source of obtaining competitive advantage for the organisation. The customer and satisfaction have become the aim of companies as it is only way to attain sustainable performance. Companies that improve their relations with their clients, and the satisfaction of the latter, will therefore achieve a better business performance and will increase their value. There is a gap in the literature about this topic. Few works have been done in this aspect; for that, our research thus seeks to analyse whether customer satisfaction is reflected in the total value of the intangibles. A sample of the main Spanish companies, those quoted on the IBEX-35 (the main index of reference of the Spanish Stock Exchange, comprising the 35 companies with greatest liquidity on the Spanish Stock Exchange) are included and the relationship between the relational capital, measured by satisfaction of customers variable, and the total value of the company has been analysed. A positive relationship is then obtained between both variables, that is, improved customer satisfaction is positively associated with an increased business value, but that is not statistically significant.

scholarly journals Radical Transparency and Brand Equity as Key Factors for Successful Business Strategy

2017 ◽  
pp. 63-89
Keyword(s):  
Brand Equity ◽  
Business Strategy ◽  
Common Denominator ◽  
Entry Barriers ◽  
Sustainable Competitive Advantage ◽  
Key Factors ◽  
Market Expansion ◽  
Intangible Resources ◽  
Related Process

This chapter analyzes the phenomenon of branding and the related process of creating new value, and thus a sustainable competitive advantage through recognition of the concept of radical transparency. The brand equity is a common denominator of all tangible and intangible resources of the company, the amount of its abilities, of any activity indicating a slightly higher value, any attempt to be better and to achieve more. Therefore, in addition the brand equity is elaborated as a source of value for the business. This chapter examines the role of brand equity in providing greater market share, creating entry barriers for new competitors, achieving production and market expansion, providing a price premium, attracting quality workforce, ensuring consumers loyalty and stimulating innovation. For the brand equity to truly provide value it should be more than the company's image or position of the product – the brand should be a unifying force across the company, providing the business with direction and purpose.

scholarly journals The Circular Economy

2019 ◽  
Vol 1 (1) ◽  
pp. 298-309 ◽  
Author(s):  
José G. Vargas-Hernández ◽  
Marlene De Jesús Morales Medrano
Keyword(s):  
Strategic Management ◽  
Competitive Advantage ◽  
Circular Economy ◽  
Social Impact ◽  
Point Of View ◽  
Economy Model ◽  
Operational Level ◽  
Resources And Capabilities ◽  
The Right

The purpose of this document is to analyze the Circular Economy (CE) model from the point of view of the resources and capacities of the organization. How is the application of the Circular Economy model related to Strategic Management? At first glance, it seems that the CE is operating within an operational level with a social impact, but it also has implications that allow us to think that it can be used as an internal resource of the company that, if applied in the right way, can become a competitive advantage, in other words, the application of the CE is related to Strategic Management through the point of view based on resources and capabilities. Therefore, the present investigation has a descriptive-correlational nature, which was analyzed through Peng's VRIO framework.

Strategic Transcultural Marketing Management and Global Competitiveness

2014 ◽  
pp. 1226-1248
Author(s):  
Angelo A. Camillo ◽  
Svetlana Holt ◽  
Joan Marques
Keyword(s):  
Strategic Management ◽  
Competitive Advantage ◽  
Business Schools ◽  
Global Strategy ◽  
Education Programs ◽  
Competitive Position ◽  
Leadership Culture ◽  
Global Competitiveness ◽  
Resources And Capabilities

An organization achieves competitive advantage if it delivers above average profits in its industry. Strategic management has many definitions. In this context, the authors define global strategic management as a bundle of decisions and acts based on resources and capabilities that a manager undertakes that decide the long-term competitive position of the firm. The past and current economic conditions are evidence that global strategy will never be perfect but an ongoing effort to achieve optimal results for all stakeholders. Hence, the task for the global leaders has become increasingly challenging and hypercompetitive. While these leaders materialize their vision and accomplish their mission, they also build a strong leadership culture. However, successful executives are too busy or do not have the capability to develop new skills to plan and execute their long- and short-term strategies. To narrow the gap between achievement and acquiring new skills, business schools from across the globe offer Executive Education Programs that help them expand their skills. These programs can be highly specialized and individually designed for specific companies in a given industry. Present and future global leaders must stay current with competitive trends and ahead of the competition to achieve and sustain competitive advantage in their industry.

The Influence of CSR on B2B Relationships

2018 ◽  
pp. 1-21
Author(s):  
Susan Saurage-Altenloh ◽  
Phillip M. Randall
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Competitive Advantage ◽  
Brand Equity ◽  
Brand Management ◽  
Sustainable Competitive Advantage ◽  
Corporate Brand ◽  
B2b Relationships ◽  
Management Experience ◽  
Corporate Social

The chapter addresses how ethical actions deliver value through sustainable competitive advantage. Corporate social responsibility (CSR) has a proven role in developing audience trust that increases brand equity among target audiences and stakeholders, thus ensuring that the brand sustains its competitive advantage through improved profitability and reputation in the market. Not only do businesses have a social responsibility to the markets from which they earn revenues, but buyers expect ethical businesses to have an established CSR program in place. Businesses that engage in CSR activities within the process of corporate brand management experience stronger reputation that drives loyalty and sales, resulting in a competitive, sustainable market advantage.

Sustainable Competitive Advantage With the Balanced Scorecard Approach

2019 ◽  
pp. 1415-1428
Author(s):  
Jorge Gomes ◽  
Mário José Batista Romão
Keyword(s):  
Strategic Management ◽  
Competitive Advantage ◽  
Organizational Performance ◽  
Balanced Scorecard ◽  
External Factors ◽  
Sustainable Competitive Advantage ◽  
The Balanced Scorecard ◽  
Fundamental Goal ◽  
The Subject ◽  
Internal Sources

Why are some firms more successful than others? This question has been intensely debated by strategic management researchers over the last 30 years. Competitive advantage is recognized as being the major cause for explaining top organizational performance and is a fundamental goal of academic strategic management studies. Recently, there has been an increasing amount of empirical research on the subject of competitive advantage and about distinguishing competitive advantage from organizational performance. The relevance of competitive advantage is not simply determined by external factors, but also by those internal sources that have been considered critical for successful organizations.

Bharadwaj Aushadalay

2013 ◽  
pp. 1-10
Author(s):  
Mukund R. Dixit ◽  
Sanjay Verma
Keyword(s):  
Knowledge Management ◽  
Strategic Management ◽  
Competitive Advantage ◽  
Diagnostic Tools ◽  
Sustainable Competitive Advantage ◽  
Pulse Diagnosis ◽  
History Of ◽  
Tools And Techniques ◽  
Indian Medicine ◽  
Treatment Restrictions

This case provides an opportunity to identify and discuss issues in sustenance of an incumbent's strategy in the changing environment. The context is the practice of Nadi Nidan (pulse diagnosis) and treatment of disorders based on this according to Ayurveda, the ancient system of Indian medicine. It describes the functioning of Bharadwaj Aushadhalay, an Ayurveda clinic run by Vaidyaji since 1955 and presents the history of the clinic, the process by which Vaidyaji learnt the practice of Nadi Nidan, the profile of the patients, the mode of treatment, restrictions imposed by Vaidyaji on the patients, their response and competitive pressures on the system. The case also provides a brief sketch of Ayurveda, its principles, currents trends in the education and research in Ayurveda, and recent advances in diagnostic tools and techniques. The case can be used in courses of Strategic Management in the module on Strategies for Sustainable Competitive Advantage and Knowledge Management.

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