Document Type

Article

Abstract

Some experts concerned that blogging may be in conflict with other more controlled public relation activities and suspect that only those companies in bad financial shape would resort to business blogging as a cheap try. Through analysis of business blogging activities of Fortune 500 companies, we demonstrated that business blogging can be used as a new strategic tool for companies to sustain their existing competitive advantages. We found business blogging tend to correlated with higher sales, lower cost of goods and reduced advertising expenses for companies. We also found that those companies use product differentiation as their main competitive strategy could better utilize business blogging to sustain their competitive position thus maintain or increase their financial performances.

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