The Importance of Branding and Institutions in the Survival of Businesses

The Importance of Branding and Institutions in the Survival of Businesses

In a world where competition is getting tougher and tougher, it is becoming increasingly important for businesses to establish a strong brand that is memorable and stands out. According to an article by Kiyoyuki Ikeda, only those brands that are the "most memorable" will survive. This means that businesses need to focus on creating a brand that resonates with their customers and sticks in their minds.

However, having a strong brand is not enough to ensure the survival of a business. As pointed out in the book "Why Nations Fail" by Daron Acemoglu and James A. Robinson, the institutions in which a business operates can also have a significant impact on its success or failure. The authors distinguish between inclusive institutions, which allow for broad participation and opportunity, and extractive institutions, which concentrate power and resources in the hands of a few.

Inclusive institutions can help to create a level playing field for businesses, allowing them to compete based on their merits rather than their connections or wealth. This can lead to greater innovation, as well as more efficient allocation of resources. On the other hand, extractive institutions can stifle innovation and limit opportunities for growth, as those without connections or resources are unable to compete.

It is clear that both branding and institutions play a crucial role in the survival of businesses. A strong brand can help to attract customers and create a loyal following, while inclusive institutions can provide a supportive environment for businesses to thrive. Conversely, weak branding and extractive institutions can make it difficult for businesses to succeed.

In order to ensure the survival of their businesses, entrepreneurs need to focus on both creating a strong brand and advocating for inclusive institutions. This requires a deep understanding of their target audience and the broader economic and political context in which their business operates. By doing so, they can increase their chances of success while contributing to the growth and prosperity of their communities.