Nation brand and competitiveness of companies: Alternative approach to nation branding

Abstract

The purpose of this study is to identify factors by which the nation brand builds a competitive advantage for various activities implemented in the country and to develop an alternative approach to nation branding, which allows to increase the competitiveness of companies operating in the country. The analysis of the previous research reveals that the nation brand image is formed by nation branding, which is aimed to communicate the nation brand identity. It is also determined that during the implementation of nation branding, three types of gaps can take place between nation brand image and identity and prevent the formation of competitive advantages. The research intended to identify the factors that form competitive advantages through the nation branding was performed in two steps: first, the analysis of the main approaches to nation branding on what forms a competitive advantage and then the identification of the factors based on the analysis of the functions and goals of nation branding. In addition to political, socio-cultural, and geographical factors, the research reveals the following factors: communication, uniqueness, relevance, management, and brand unity. With consideration to identified factors and the information about gaps, there was developed an alternative approach to nation branding with the goal to enhance the competitiveness of companies operating in the country. 11 characteristics underlying the alternative approach were defined. The significant role of the national priorities of the country in the formation of the nation brand is emphasized. In the framework of an alternative approach, nation brand education is marked as a key task of nation branding. The team which is responsible for nation branding will trains representatives of different fields of the state activities how to use the nation brand in order to enhance competitiveness.