In the Latin American context, specifically in Mexico, the lack of development of a large number of global brands can be attributed to various factors, including the lack of vision and long-term perspective in business strategies.
We will then analyze this phenomenon from the perspective of the commoditization of companies, in contrast to long-term capitalization, and offer three recommendations for managers seeking to expand their businesses through a solid branding strategy.
First, the tendency to focus on immediate, short-term results has been a predominant characteristic of many companies. This mentality, focused on quick profits, has limited the ability of organizations to invest in long-term brand building and consolidation. Instead of developing a strong, differentiated brand presence in the marketplace, many companies pursue transitory marketing strategies that fail to generate lasting connections with consumers. The lack of a long-term vision is also reflected in the reluctance of some companies to invest in research and development. Constant innovation is a crucial element in building lasting global brands, but many companies in Mexico do not allocate the necessary resources to drive creativity and continuous improvement of their products or services. Another aspect contributing to the lack of global brands in the region is the absence of a mindset focused on long-term capitalization. Instead of considering investment in brand building as a strategy to increase the long-term value of the company, some organizations adopt a more commoditized approach, seeking to maximize profits immediately. This perspective limits the ability of companies to create iconic brands that transcend borders and position themselves in the minds of consumers. To reverse this trend and foster the development of transcendent brands, business managers can implement the following recommendations:
Invest in research and development (R&D): Allocating significant resources to R&D allows companies to not only stay ahead of the curve in terms of innovation, but also to create unique products or services that generate long-term brand loyalty. Develop long-term brand strategies: Rather than focusing exclusively on short-term marketing tactics, it is recommended that managers develop brand strategies that transcend time. Building an authentic and consistent brand identity over the years will contribute to the creation of a solid reputation.
Nurturing lasting relationships with consumers: Building a great brand involves establishing fundamental connections with consumers. Fostering long-term relationships based on trust and authenticity can lead to a brand being perceived positively internationally.
In conclusion, the development of global brands in Latin American countries such as Mexico is limited by a lack of long-term vision, excessive commoditization and underinvestment in fundamental aspects such as research and development. However, by adopting strategies focused on long-term brand building, companies can position themselves more effectively in the domestic as well as the international market and contribute to the sustainable growth of their businesses in an economy where consumers and the entire value chain benefit.
