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Investing in Durable Assets to Achieve Superior Performance: Restoring Tiger Balm's Roar
Author(s) -
Pangarkar Nitin
Publication year - 2015
Publication title -
global business and organizational excellence
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 16
eISSN - 1932-2062
pISSN - 1932-2054
DOI - 10.1002/joe.21651
Subject(s) - thriving , business , profit (economics) , profitability index , value (mathematics) , marketing , finance , economics , microeconomics , social science , machine learning , sociology , computer science
Investing in durable assets—assets whose value lasts well beyond the current period—strengthens profit streams, creates barriers to imitation, and contributes to superior performance in the long term. The experiences of such companies as Singapore Airlines, Canon, and Coca‐Cola highlight the three types of investments that can be used to build durable assets and the importance of doing so. A detailed analysis of the case of Tiger Balm, a venerable Singapore‐based brand that is thriving despite 20 years of neglect between 1971 and 1991, identifies some of the factors that can lead to under‐investment in durable assets. It also underscores the value of emphasizing the long‐lasting contributors to organizational success, particularly in marketing‐intensive industries. © 2015 Wiley Periodicals, Inc.