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Conclusion

In: The Economy of Brands

Author

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  • Jan Lindemann

Abstract

The various aspects of brand value creation demonstrate that both the business and finance communities acknowledge the economic value of branding. The brand generates and secures a loyal customer base with the related cash flow. The brand enables companies to enter new markets and shift their business focus to adapt to changing market conditions. The brand is one of the few business assets that if properly managed and invested in, can appreciate in value on an on-going basis. The brand is one of the most sustainable assets and can outlive the average corporation. Of the leading global 100 brands about 70 percent have existed for longer than 50 years with most of the younger brands emerging in new categories such as IT and the Internet. It also shows that brands can maintain a leadership position over a sustained period as evidenced by brands such as Coca-Cola, IBM, Gillette, Louis Vuitton, and Goldman Sachs. Brands help companies to outperform rivals on the stock market. Companies with strong brands generate higher returns at a lower risk compared to competitors and market indices.

Suggested Citation

  • Jan Lindemann, 2010. "Conclusion," Palgrave Macmillan Books, in: The Economy of Brands, pages 164-168, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-27501-0_17
    DOI: 10.1057/9780230275010_17
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