A Study On Brand Externalities And Their Strategy Choices Of The Enterprises' Brand

The theory of externality has been the focus of contention in economics since it came into being. To a great degree, the relative argument have promoted the apparence of different new economics theories.Recently, the theory has translated from the traditional controversy focus into the inter-blending of different schools. A series of theories on externality has become the important theoretical basis for many felids, such as circumstance economics, public policy theory, etc.Introducing the basic economics theories into corporation management and strategy can not only improve the applicability of economics efffectively, but make up the theoretical deficiency of management and make its theory more systematical and logical. In the field of corporation management there are also the problems of externality. It isn't enough to explain these problems on the basis of traditional economics theories. Therefore, it is worthy to introduce the theory of externality in order to explain the relative problems.The brand externality is an important economics phenomena. The externality of different products varies greatly. However, the analysis of brand is mostly resting on the level of management, with few economics analysis. When we emphasize the brand externality we must emphasize that there are differences in the externality. Now , there is no specific and intact discussion concerning brand externality. So this paper tries to explain the brand externality complately, demonstrate the inflence of externality to the choice of brand strategy, and state the brand strategy. By using economics technic analysis, it introduces externality theory into corporation management and strategy, hoping to put forwar the theoretical framework and concrete suggestions for corporation brand strategy.First, the paper lists the influences of brand strategy in real economy. Second, it recalls the history and present situation of external economy, introduces the brand externality and atates its definition, and the relationship among the otherness and externality, the relationship between brand input and externality, etc. Finally, it discusses the influencs ofcompetition among enterprises and middlemen to corporation brand strategy and the effective strategies of reducing and avoiding the externality.