Why are competitive advantages based on brands, as in the consumer goods industry, often more important for

Question:

Why are competitive advantages based on brands, as in the consumer goods industry, often more important for long-term value creation than advantages based on product quality or innovation?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Valuation Measuring and managing the values of companies

ISBN: ?978-0470424704

5th edition

Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel

See More Books

Question Posted: Aug 12, 2015 02:16 AM

See More Questions

Product or service quality is often defined as fitness for use. This means the product or service meets the customer's needs. Generally speaking, fitness for use is based on five quality...
Why is quality such an important product strategy objective? What are the dimensions of product quality? How has e-commerce affected the need for quality product objectives?
Why are incentive systems that emphasize long term performance more consistent with a balanced scorecard approach!
Which statement about the Java variable and literal is NOT true? a. A global variablewill be initalised by the complier automatically. b. Literals can also be used as the lvalue in an express. c. An...
You ask for a students age at his or her last birthday. Determine the number of outcomes in each event. Then decide whether each event is simple or not. Explain your reasoning. 1. Event C: The...
An office manager is concerned with declining productivity. Despite the fact that she regularly monitors her clerical staff four times each dayat 9:00 AM, 11:00 AM, 1:00 PM, and again at 3:00...
(1) Construct a short plot summary (no more than seven steps) that summarizes the case.
Allen Abbott has a wide-curving, uphill driveway leading to his garage. When there is a heavy snow, Allen hires a local carpenter, who shovels snow on the side in the winter, to shovel his driveway....
Consultex, Inc. was founded in 2012 as a small financial consulting business. The company had done reasonably well in 20122014 but started noticing its cash dwindle early in 2015. In January 2015,...
Read the following case study based on the Applegold Cider Company. You should then apply decision analysis to the problem facing Applegold. This will involve: a) Formulating the problem as a...
Why do companies operating within the pharmaceutical and biotechnology industries typically sustain higher ROICs than firms in the technology, hardware, and equipment industries?
Explain the difference between ROICs excluding and ROICs including goodwill for U.S. companies: what does this difference imply and why has it increased so much over the past decade?
A methanol fuel cell is used as a battery for a laptop whose average electrical demand is 20. W at 10.0 V. Each cell produces 0.50 V. How much methanol in ml is needed each day? Methanol density is...
As an official sponsor of the Olympics, what specific benefit did John Hancock use to help drive sales in their national offices?
assumes that Nia has both a discount rate of zero and faces an interest rate of zero. These assumptions made calculating her constant level of consumption expenditure of $56,000 fairly...
Paul Petersen lives in Northern California. He owns a BMW car worth about $20,000. He wants to take a trip to Nevada with his girlfriend Patricia, who lives in Los Angeles. He takes his car into...
Do you see gendered patterns of interaction in personal relationships? Does knowing about gender linked patterns affect how other interpret on what happens in a relationships?
Significance For bone density scores that are normally distributed with a mean of 0 and a standard deviation of 1, find the percentage of scores that are significantly high (or at least 2 standard...
The regression line should be interpreted as
Match the following. Answers may be used more than once: Measurement Method A. Amortized cost B. Equity method C. Acquisition method and consolidation D. Fair value method Reporting Method 1. Less...
Describe six quantitative and five qualitative factors auditors may consider when making materiality decisions.
Describe valuation settings in which the appropriate discount rate to use is the required rate of return on equity capital versus settings in which it is appropriate to use a weighted average cost of...
Describe circumstances and give an example of when free cash flows to equity shareholders and free cash flows to all debt and equity stakeholders will be identical. Under those circumstances, will...
The 3M Company is a global diversified technology company active in the following product markets: consumer and office; display and graphics; electronics and communications; health care; industrial;...
Show that the convexity for a zero coupon bond with m payments per year is (m) n(n + -)(1+ m m
Abdul Canarte , a Central Bank economist, noticed that the total group purchasing basket of goods (CPI) has gone from $149,740.00 to $344,460.00 in 8 years. With monthly compounding, what is the...
ABC Corporation expects sales next year to be $50,000,000. Inventory and accounts receivable (combined) will increase $8,000,000 to accommodate this sales level. The company has a profit margin of 6...

Why are competitive advantages based on brands, as in the consumer goods industry, often more important for

Question:

Step by Step Answer:

It is true that quality matters when establishing a brand however ...View the full answer

Valuation Measuring and managing the values of companies

Students also viewed these Corporate Finance questions