Branding A competitive advantage for SMEs

The total value delivered to the customer is the sum of "what" is being delivered (the product itself) and "how" it's being delivered (collaboratively, reliably, on-time, post-purchase service etc.). Branding activities is shorthand for trust. As such, branding is part of "how" the value is delivered to the customer. Branding is a minor cost to the manufacturer but delivers significant value to the buyer. When it comes to branding, Western small and medium size companies (SMEs) should have an inherent competitive advantage over low cost manufacturers. By increasing the customer delivered value through branding, Western companies can partially compensate for their structural cost disadvantage embedded in the "what" component. The article describes a practical branding process for SMEs and explains why branding renders Western manufacturers more competitive in the global market place.