Investing in Durable Assets to Achieve Superior Performance: Restoring Tiger Balm's Roar

摘要

Investing in durable assets-assets whose value lasts well beyond the current period-strengthens profit streams, creates barriers to imitation, and contributes to superior performance in the long term. The experiences of such companies as Singapore Airlines, Canon, and Coca-Cola highlight the three types of investments that can be used to build durable assets and the importance of doing so. A detailed analysis of the case of Tiger Balm, a venerable Singapore-based brand that is thriving despite 20 years of neglect between 1971 and 1991, identifies some of the factors that can lead to under-investment in durable assets. It also underscores the value of emphasizing the long-lasting contributors to organizational success, particularly in marketing-intensive industries.