The Influence of Design on Companies’ Increase in Income, Market Share or Brand Value
Jan Kramolis, Eva Svirakova
design, design management, market share, profit, brand value, sales, design and competitiveness
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.
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Kramolis, J., & Svirakova, E. (2019). The Influence of Design on Companies’ Increase in Income, Market
Share or Brand Value. Journal of Competitiveness, 11(4), 89–102. https://doi.org/10.7441/joc.2019.04.06