Ekonomski Vjesnik (Jul 2010)
Building the Competitive Advantage of a Business Entity through Brand Development
Abstract
The starting point of this paper is the idea of brand. Its aim is to define the role of a brand with the purpose of the establishment of future contributions in the scope of this area, that is its influence on purchase stimulation and the establishment of a competitive advantage for a business entity in regard to other market actors. Furthermore, a brief theoretical explanation of the term brand is provided, i.e. the history of brand’s emergence, as well as a review of its elements. The many complexities during the establishment of brand are also explained. Brand has emerged as a consequence of market globalization, as well as the existence of numerous products that satisfy the same need. Its main purpose is the differentiation of products and the attempt to draw potential consumers’ attention in order to influence them to decide on the purchase of a brand product as quickly as possible. Business entities that realize the importance of creating a brand, its development and management will create all preconditions for successful, i.e. profitable operation. This way of deliberation and brand management represents the key to the business success of every business entity. It is generally considered that the market power of a brand can also be treated as an asset.
