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Awards Are Significant Tools For Increasing Demand: Economic Analysis Essay

There are several characteristics of resources. First of all, they should have the capacity to generate value. In this case, they should lead to high margins, high sales, low costs and add financial value to a firm. I believe when awards are given to individuals for their excellent performance in public, the value of the company sponsoring them increases (Kaimann, 2013). Rareness is another characteristic of a resource that creates a competitive advantage. For those film actors that are awarded for their exceptional performance are often rare and many firms seek to employ them. This increases the competitive advantage and raises the firm that the actor associates himself with beyond the competitive parity. A firm describes the strategic management as the maintenance and development of meaningful skills and assets. By giving awards to the film actors that have done exceptional works. This motivates them and encourages other actors from working hard and developing their skills. This increases a firm's competitive advantage (Ponzo & Scoppa, 2013).

The awarded movie stars sometimes serve as brand ambassadors for several firms. This is because...

The awarding of a star and allowing them to retain the excess of expected gross revenue over the earnings of a movie is a way of securing talent (Gemser, Leenders, & Wijnberg, 2008).
In conclusion, awards given to movie stars directors and actors are important tools for increasing participation and demand. In fact, individuals awarded will earn and generate more demand for movies associated with their products. The filmmakers thus take advantage of the stars to guarantee them success. This increases the competitive advantage of the said firm.

References

Gemser, G., Leenders, M.A., & Wijnberg, N.M. (2008). Why Some Awards Are More Effective Signals of Quality Than Others: A Study of Movie Awards. Journal of Management, 34(1): 25-54

Kaimann, D. (2013). "To in-nity and beyond!"? A genre-speci-c ?lm analysis of movie success mechanisms. German Research Foundation (DFG), 1-28

Ponzo, M. & Scoppa, V. (2013). Experts' Awards and Economic Success: Evidence from an Italian Literary Prize. Working Paper n. 06, 1-25

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References

Gemser, G., Leenders, M.A., & Wijnberg, N.M. (2008). Why Some Awards Are More Effective Signals of Quality Than Others: A Study of Movie Awards. Journal of Management, 34(1): 25-54

Kaimann, D. (2013). "To in-nity and beyond!"? A genre-speci-c ?lm analysis of movie success mechanisms. German Research Foundation (DFG), 1-28

Ponzo, M. & Scoppa, V. (2013). Experts' Awards and Economic Success: Evidence from an Italian Literary Prize. Working Paper n. 06, 1-25
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