Non-Fungible Tokens (NFTs) and Their Impact on Branding: Analysis and Critique
Weighting (% of final grade): 70%
Technology is a powerful force of change and opportunity in all areas of society. For firms who invest in and utilise technology effectively it is a highly effective way to gain competitive advantage. A huge challenge for firms of all types is in keeping up with new and emerging technologies, whilst at the same time managing the implementation of technologies which were new only very recently.
The fear and risks for firms is in missing critical new technologies, or going with new technologies which have no long-term, or even short-term potential for success. The risks and potential bonuses in going with the right new technology are huge and making the right call critical for a firm’s future success and competitiveness.
Where firms can go to for a rigorous analysis of what is new and also relevant and trustworthy is another challenge which adds to the problems. One great and trustworthy source of evidence and analysis of new technologies comes from the academic literature.
With these thoughts in mind, for your individual assignment you are to the following academic journal article on Non-Fungiable Tokens (NFTs) and their impact on branding.
Colicev, A (2023), “How can non-fungible tokens bring value to brands,” International Journal of Research in Marketing, March, 40, 1, 30-37.
How Can Non-Fungible Tokens Bring Value To Brands.pdfDownload How Can Non-Fungible Tokens Bring Value To Brands.pdf
Once you have read the paper which explores the issues, proceed to provide an analysis and critique of the thinking behind the author’s work. You will then apply what you have found from the paper to a brand of your choice and propose how that brand can capitalise on NFT technology, and utilise your findings so they can implement your ideas with greater effectiveness and efficiency. You are also required to further explore key readings over and above the recommended paper to give depth and rigour to your work.
Ensure to adhere to APAv7 requirements.
Non-Fungible Tokens (NFTs) and their Impact on Branding: Analysis and Critique
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Non-Fungible Tokens (NFTs) and their Impact on Branding: Analysis and Critique
Non-fungible Tokens (NFTs) have emerged as a game-changing technology that uses blockchain to validate ownership and create unique digital assets. In contrast to fungible cryptocurrencies like Bitcoin or Ethereum, which may be swapped like-for-like, NFTs represent separate and indivisible commodities ranging from digital art to collectibles to virtual real estate (Colicev, 2022). NFTs have lately acquired substantial media attention and appeal, drawing investors and enthusiasts.
Staying ahead of technological breakthroughs is critical for organizations to acquire a sustained competitive edge in today's increasingly competitive business world. Firms that use technology effectively may improve their operations, engage customers in new ways, and distinguish their brands in the market (Colicev, 2022). However, choosing and implementing the proper technologies can be challenging, given the quick speed of invention and the dangers associated with investing in untested or short-lived technologies. Firms often seek rigorous analysis and insights from trusted sources to navigate this landscape. Academic literature plays a vital role in analyzing new technologies like NFTs, providing evidence-based research and theoretical frameworks to understand their potential impact across various industries (Colicev, 2022). By examining academic literature, firms can make informed decisions and better comprehend the opportunities and risks of adopting emerging technologies.
This paper will delve into the potential impact of NFTs on branding, exploring how NFTs can bring value to brands. This paper will critically analyze existing academic literature on NFTs and branding, examining the arguments and evidence presented (Colicev, 2022). Additionally, it will provide recommendations for brands to effectively capitalize on NFT technology, drawing insights from the analyzed literature and other relevant readings.
Summary of the Author's Work
The article explores the potential value that non-fungible tokens (NFTs) can bring to brands. It discusses the characteristics of NFTs, their applications in the digital world, and their potential impact on brand-building and consumer engagement (Colicev, 2022). The author highlights the unique features of NFTs, such as scarcity, authenticity, and ownership verification, which can create value for brands and enhance customer experiences (Colicev, 2022). The article also emphasizes the need for brands to carefully consider the fit between NFTs and their brand identity, target audience, and product offerings.
Evaluation of the Author's Arguments and Supporting Evidence
The author's arguments appear logical and well-supported based on the information provided. The author recognizes the distinct attributes of NFTs and how they can align with specific brand characteristics and objectives (Colicev, 2022). The discussion of NFTs as a means to enhance brand communities, engage passionate online communities, and extend brand experiences through digital collectibles is supported by the inherent properties of NFTs.
Identification of Strengths and Weaknesses in the Analysis
Strengths
* Recognition of the unique characteristics of NFTs and their potential value for brands.
* Considering the fit between NFTs, brand identity, target audience, and product offerings.
* Emphasizing the potential impact of NFTs on brand-building, consumer engagement, and brand communities.
Weaknesses
* Lack of information on the specific research methodology employed.
* Insufficient discussion on the potential challenges, risks, or drawbacks of NFT adoption for brands.
* Limited exploration of the broader implications of NFTs beyond brand-building, such as their impact on intellectual property rights, sustainability, or social responsibility.
Critique
One of the article’s strengths is its exploration of the opportunities that NFTs can bring to brands. Enhancing brand authenticity and exclusivity through limited-edition digital assets is an enticing prospect (Colicev, 2022). The article effectively argues that brands can leverage NFTs to strengthen their identities and attract consumers who value unique and scarce items. Similarly, the idea of monetizing digital assets and intellectual property is well-founded, as NFTs provide a direct avenue for brands to tap into the market for digital collectibles.
However, the article could have benefited from a more comprehensive evaluation of the supporting evidence. While some examples are mentioned, such as Coca-Cola's NFT jacket, additional empirical data or case studies would have added depth to the author's arguments (Colicev, 2022). Providing specific instances where brands have successfully capitalized on NFTs would have reinforced the credibility of the analysis and enhanced the persuasiveness of the article.
Furthermore, the article's discussion of challenges and risks is limited. The volatile nature of the NFT market and environmental concerns surrounding blockchain technology are valid points raised by the author (Colicev, 2022). However, exploring these issues and potential solutions or mitigation strategies would have provided a more balanced assessment. Additionally, the integration and adoption barriers faced by brands could have been further elaborated, addressing practical considerations and potential obstacles that brands may encounter when venturing into the NFT space.
The strategies proposed by the author offer valuable insights for brands seeking to capitalize on NFTs. The emphasis on establishing a straightforward brand narrative, collaborating with artists, and leveraging NFTs as a marketing tool aligns with current trends in brand-building and customer engagement (Colicev, 2022). However, the article lacks an in-depth analysis of each strategy and could have provided more practical guidance on implementation. Including real-world examples or case studies that illustrate the successful execution of these strategies would have made the recommendations more actionable for brands.
The article is well-organized and logical. The author's rationale is explained systematically. However, a more extensive literature study with additional academic sources to support the analysis would have improved the essay (Colicev, 2022). This action would have bolstered the article's intellectual grounding and helped explain NFTs' branding implications.
Case Study
Adidas and NFT Implementation
Adidas is a popular sportswear and lifestyle brand for athletes, sports fans, and fashionistas of all ages. The brand targets professional athletes, sports enthusiasts, and customers who like its style and quality (Majcen, 2020). Adidas is famous for its three-stripe emblem, inventive designs, and relationships with famous players and teams.
Analysis of Adidas's Existing Brand Values and Positioning...