Abstract
Over-supplied global markets (i.e. with open competition and with production exceeding the absorption capacity of the demand) show clearly the primacy of product intangible assets (i.e. pre/post sales services, logistics, merchandising, design, packaging, etc.) which in turn help to enhance the corporate intangible assets (corporate culture, information system and brand equity). In over-supply, market-driven orientation configures a policy of long-term corporate development, where the competitive constraints of cost compare themselves with the primary goal of meeting demand. The over-supply outlines new logics of competition, with a profound rethinking of the theories of management and marketing. In today's international dominance of over-supply, the strategies of ‘hyper-competition’ are based on the assumption that a business is highly profitable only for firms that shape innovation and create ‘demand bubbles’.
Highlights
Large international firms operate in contexts dominated by the globalization of markets, which enhance the achievement of viable economies of costs
The enormous economic and financial benefits achieved by the pursuit of increasing economies of scale, sometimes leads firms to neglect even the demand satisfaction; this conduct, tends to reduce the competitive strength of organizations working over large geographical areas because of: excess of decision-making centralization, a progressive insensitivity to local markets, a partial implementation of global strategies at the local level, the weakening of brand image and the impairment of brand equity
In over-supply, market-driven orientation configures a policy of long-term corporate development, where the competitive constraints of cost compare themselves with the primary goal of meeting demand
Summary
Large international firms operate in contexts dominated by the globalization of markets, which enhance the achievement of viable economies of costs (procurement, manufacturing, distribution, communication, sales). Phenomenon whose consequences are obvious both in the 'up & down' share prices both in the processes of improvement of the degree of 'harmony' with the staff, both in product innovation aimed at processes of customer fidelization In this sense, for example, a 'historical' brand of beer that introduces a new, 'revolutionary' plastic packaging (rejected by old consumers, but that opens up new customer segments) sets the conditions for creating a new value for the 'firm and at the same time determines the profound modification of existing corporate values of marketing, finance and human resources. In over-supplied markets, the rules of competition have been revolutionized, since the markets are saturated, companies operate in conditions of ‘time-based competition’ and communication addresses sales and production In this context, the logic of competition becomes ‘First Community, Second Business’ or ‘before you sell and you manufacture’. The volume is made available immediately, according to the rules of the virtual stock (overcoming the constraint of titles in reprint or out), with easy access to the network and can be produced wherever you want, in a single copy
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