Competition of Local and Global Brands in the Markets of Different Countries: Factors of Relative Competitiveness

In the era of globalization and growing competition on the domestic and foreign markets, companies need an effective tool to survive in this competitive struggle. In today's economy, the brand is the main competitive advantage of many companies. The brand is an intangible asset of the company and its value is increasing. Therefore, the choice of an effective branding strategy becomes more relevant to companies than ever. Given the influx of global brands, there is a growing danger of replacing them with local (national) ones. However, as well as global, and local brands have a number of their advantages, which depend on the segment on which the brand, the market and the sales geography are presented. The advantages of some brands over others are mainly determined by the attitude of the consumer towards it. But there are also risks associated with the economic or political situation in the country where the brand is represented. This research focuses on the interaction between local and global brands, in particular, on the definition of country macroeconomic factors affecting local brands. The purpose of this study is to analyze the relationship between several macroeconomic variables in European countries relative to the market share held by local brands in these countries. The novelty of this study is an analysis of the impact of macroeconomic indicators on the competitiveness of local brands was conducted and results obtained. Using panel data, allows to take into account country and time effects, which gives more reliable results.