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Google has joined the definitive list of the 10 most valuable global brands. Interbrand's annual audit said that the company, which has built on its dominance in internet searches, and expanded into software, video, mapping and web browsing, was "the undisputed king of the internet world".
Fourteen spots, in fact. :)
It is interesting to see 8/10 are US companies...
[edited by: maximillianos at 4:55 pm (utc) on Sep. 19, 2008]
Companies are ranked by "brand value". And Google's brand is valued at over 25 billion.
How does one measure that?
What makes Google's brand worth $25,590,000,000, while VISA's brand (#100 on the list) is worth a measly $3,338,000,000?
Their methodology is explained here [interbrand.com]... it's not about recognizability; the brand's value is measured by how much coin is exchanged for products bearing or representing the brand, temprered by some strict criteria. For instance, WalMart doesn't make the list because while they do business internationally, they don't do it under the WalMart brand.
Fascinating data pron.
Or, similarly, how much less would businesses pay for this huge rack of mostly-commodity integrated circuits and wires if it didn't say "IBM" on it?
A GM four-wheeling planet-burner wrapped in odd-shaped sheet metal doesn't command a price premium over other similar-functioned products. The COMPANY is big, but its brand doesn't contribute much to the bottom line--unlike Toyota, whose rolling stock command a price higher than comparably-sized competitive cars.
Conversely, Apple's brand is strong -- 50% or more of its retail price tag may be attributable to the brand name. But IBM's volume, even with a smaller brand multiplier, pushes it higher on the list. And Microsoft, for all its vaunted advertising, gets most of its business by technical tie-ins (often involving illegally suppressing competition) not because anyone would, given a free choice, actually pay anything at all for its trash.
Caveat: I'm no marketing expert, and I may have missed the whole point.
In North Am, Europe, Japan - the brands aren't as important as the specs. If we're shipping to Africa, South America, the Middle East, and most of Asia, then brand is everything - it's the easiest way for the end customers to determine a base level of quality.
Used IBM hardware commands an easy 20% premium over similarly specced machines when we sell to those regions. Intel's multiplier is even stronger - to the point where we almost can't unload other chipsets. Unless it's inside an IBM case.