The Influence of Design on Companies’ Increase in Income, Market Share or Brand Value

Jan Kramolis, Eva Svirakova

The Influence of Design on Companies’ Increase in Income, Market Share or Brand Value

Číslo: issue 4/2019
Periodikum: Journal of Competitiveness
DOI: 10.7441/joc.2019.04.06

Klíčová slova: design, design management, market share, profit, brand value, sales, design and competitiveness

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Anotace: The main purpose of this paper is to focus on the awareness of SMEs of the influence of design on their business as well as on the performance of the company in the context of increased competitiveness. What economic indicators do design influence? Can they facilitate direct profit increases or just sales increases (turnover)? Can design factors affect long-term goals such as market share or brand value growth? The research approach is based on theoretical sources as well as empirical studies conducted on design management and its relationship to a company’s profits. Two research questions verifying the thesis were statistically tested at a significance level of 0.05. A statistical search was also undertaken seeking to determine a dependence between how much companies expect to increase profits as well as brand value (achieving a competitive advantage) based on design elements. The practical implications of the research were shown to confirm the thesis and unequivocally support the significant impact of design on the economic results of SMEs. This effect was shown especially in increased brand value, but also by profit as well as sales growth, all factors which are of high importance to businesses. This, however, is not the primary focus of the article. The originality of this contribution lies primarily in the freshness of the data received, i.e. in the context of the current situation in the economy. It is commonly believed among practitioners of Product Life Cycle Theory that it is optimal for companies to invest in innovation (e. g. design) in the third phase, thus it is crucial that firms are (made) aware that design factors affect their economic goals, and to determine to what extent companies accept the reality of these effects. To meet these goals, we also considered profit maximization from the point of view of microeconomic theory, which is undoubtedly reflected in the formation of corporate goals, e.g. as measured by how design influences the four economic indicators of a company.