How big is tech? Just look at the chart above!
To calculate brand value, Interbrand takes into account several factors including financial returns, the role of the brand in the customer’s purchase decision and the power of the brand to create loyalty and sustainable demand.
- Financial Analysis
This measures the overall financial return to an organization’s investors, or its economic profit. Economic profit is the after-tax operating profit of the brand, minus a charge for the capital used to generate the brand’s revenue and margins.
- Role of Brand
This measures the portion of the purchase decision attributable to the brand as opposed to other factors (for example, purchase drivers such as price, convenience, or product features). The Role of Brand Index (RBI) quantifies this as a percentage. RBI determinations for Best Global Brands derive, depending on the brand, from one of three methods: primary research, a review of historical roles of brands for companies in that industry, or expert panel assessment.
- Brand Strength
Brand Strength measures the ability of the brand to create loyalty and, therefore, sustainable demand and profit into the future. Brand Strength analysis is based on an evaluation across 10 factors that Interbrand believes constitute a growing brand. Performance in these areas is judged relative to other brands in the industry and relative to other world-class brands. The Brand Strength analysis delivers an insightful snapshot of the strengths and weaknesses of the brand and is used to generate a road map of activities to grow the brand’s strength and value into the future.
Other prominent tech companies on the list are:
- Intel in 14th place
- Facebook in 15th place
- CISCO in 16th place
- eBay in 32nd place
- Philips in 41st place
- Canon in 42nd place
- Siemens in 52nd place
- Sony in 28th place
- Huawei in 72nd place
- Lenovo in 99th place
- Tesla in 100th place
Criteria for Inclusion in Best Global Brands:
To be included in Best Global Brands, a brand must be truly global, having successfully transcended geographic and cultural boundaries. It will have expanded across the established economic centers of the world and entered the major growth markets. In measurable terms, this requires that:
- At least 30 percent of revenue must come from outside of the brand’s home region.
- The brand must have a significant presence in Asia, Europe, and North America as well as broad geographic coverage in emerging markets.
- There must be sufficient publicly available data on the brand’s financial performance.
- Economic profit must be expected to be positive over the longer term, delivering a return above the brand’s cost of capital.
- The brand must have a public profile and awareness across the major economies of the world. (Source: Interbrand)