On The Operation Of Brand Capital

Since the 1980s, the world's enterprise circles has undergone two major phases, from the phase of product management to the phase of the operation of brand capital stressing brand establishment and capitalization of the value of brand capital, and thus it has ushered in a fire-new brand competition age, and brand has become the "nucleus" of capital value and market economy. Meanwhile, the increasing high value-added brand capital import of the international capital flow has replaced the traditional product import. Especially in today's economic globalization context with fast-developing information technology economics, brand import has become an omnipresent heated competition. And China in the 21st century has also been involved in this worldwide brand competition.With China's access to WTO, more and more foreign enterprises and commodities are swarming into Chinese market, and thus the domestic corporations and products are confronted with the competition from the international brand in regional, domestic and international markets. Although in the transformation process from planned economy to market economy in the past twenty years, some famous Chinese brands, like Haier, Lenovo, Changhong, and TCL, etc. have also emerged, other less famous brands have either been destroyed or purchased or annexed. Therefore, at present domestic brands and all kinds of enterprises are actually in a passive position, which can not stand facing international competitors in international market.As a result, the issues of how China's enterprises' brands will respond to international brand competition and how China's enterprises can survive and develop in international market and whether Chinese market will become a"manufactory" in the new round of brand capital import really deserve our pondering. Because these questions are concerned with Chinese enterprises' survival and development, domestic brand's further growth, Chinese brand enterprises' development in the access to international market and our country's international comprehensive competition strength as well. All in all, to research into the operation of brand capital is of great significance.The academia at home and abroad has mainly studied the issue of brand from the approaches of establishment, marketing and strategy of brand, which have been limited on the level of experience, cases (with a description of a successful enterprise story) and a single discipline, while the research into brand capital remains incomplete and unsystematic, hence an in-depth and systematic theoretical research. As far as the question of the operation of brand capital is concerned, it has not drawn the scholar's sufficient attention. Even if they notice it, they only touch upon a little of it without a deep and careful analysis. So the study of the operation of brand capital can help to further the theoretical innovation of the operation of brand capital, provide beneficial reference and patterns for the value upgrading of our country's enterprises' brands and thus it possess both the theoretical and practical significance.The study of the operation of brand capital mainly involves brand theory, capital theory, capital operation theory, intangible assets theory, knowledge capital theory, and intangible capital theory, etc. This dissertation also fully realizes that brand is not only the enterprise's intangible assets, but also its intangible capital. Because the emergence of brand capital is closely related to the capitalization operation of brand assets, this dissertation, based on a discussion of brand, capital and brand assets, analyzes the value and use of brand capital, figures out the source and components of brand capital under the foundation of Marx's labor value theory and other related value theories, establishes the value forming pattern of brand capital, and holds that brand capital is the transformation form of brand assets, which can also gain excess monopoly profits.The forming process of brand capital is just the brand capital use, thefulfillment process of enterprises' ability to obtain excess profits. This paper, by applying some theoretical models of modern industry organization theory and information economics, under the pretext of dissymmetry information and from the perspective of brand capital causing product difference, analyzes why brand capital can bring about excess profits for the enterprise form the angle of the consumer, discusses the motives of the establishment of brand capital from the angle of the enterprise, and finally studies the formation process of brand capital, and thus reveal the formation mechanism of brand capital. This dissertation also illustrates the basic measure methods of the profit distribution of brand capital on the theoretical foundation of Marx's labor value theory.Based on much research, the author holds that the purpose of the operation of brand capital is to obtain maximum value increment of brand capital. This dissertation fully applies capital operation theory, principles of value& price, knowledge capital theory and pertinent theories, deduces the operation mechanism of brand capital, and analyzes the causes of gaining brand excess profits.At last, the author believes that the operation of brand capital is a complex and systematic project, so quite a few useful brand capital operation strategies, such as the brand capital domestication and globalization strategy, brand price discrimination strategy, brand advertising strategy, brand prolongation strategy, brand crisis management strategy and brand protection strategy, etc. should be taken in order to ensure the smooth implementation of the operation of brand capital and upgrade the value of brand capital. In addition, this dissertation also offers some very important rational suggestions and countermeasures for the issues related to the present operation of brand capital.