The use of brand identity in public procurement in the defense market

This study investigates if a company’s brand identity can be used to influence public authorities in public procurement by possible discretions in the procurement rules, and the importance of this meaning increased business opportunity. The subject of the work, branding in public procurement, is unexplored and may be of interest to a larger market. The study approaches an inductive, explorative, single case study. Literature studies forms a theoretical framework that is combined with interviews with representatives from both public authorities and a company. The study finds that a company can use the part of Brand Identity named Image. To be successful, a company’s image expresses what is important and desired from an authority: security, trust, long-term focus and stability. This reduces the authority’s perceived risk and increases its security, and makes the company a more attractive choice. The study also finds that it is impossible to directly influence an ongoing procurement process. The study is limited to the defense market and procurement of large technical advanced systems, not commodity products. The study focuses on the direct relations between the procuring authority and the tendering industry. It will not discuss the involvement of political forces and their actions, e.g. counter-trade. Possible future research is the following suggestions: Investigation of how political forces have impact on international/ intergovernmental business. This could include the correlation between the size and magnitude of the procurement and political involvement. Investigation of the relationship between the compliance of international procurement rules, the favoring of domestic suppliers, and a nation’s position on Transparency International’s Corruption Perceptions Index. A third extension of this work is to extend its scope to encompass other products or business areas, and make the result more general. The study contributes with knowledge about how branding has influence on public procurement. The result may be of interest to companies, active in the defense market, wanting to increase their competiveness, and for authorities that wish to improve their ability to implement good procurement practices