April 27, 2011

Intangible assets and Competitive advantage

Increasingly, companies are trying to get competitive advantages that make them different and unique in the market. However, without having a sustainable competitive advantage a company would be threatened with loosing these advantages in such global, technological and competitive business environment that generates huge amount of knowledge.

While the trend after the industrial revolution was to focus on tangible assets, such as buildings and equipment, to create competitive advantage, the technological revolution made it clear that intangible assets are the most important competitive advantage for companies.

Microsoft and Apple are examples of this importance. Microsoft’s success and value are based on the knowledge, creativity encouraging culture that produced superior software programmes, and the creative marketing abilities that helped in building a huge customer base. Recently the significant importance of intangible assets has been under research in the light of the declined shares prices of Microsoft coupled with the rise of its competitors’ shares Google and Apple.

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