Microsoft was ranked No.2 in the list of most valuable brands by Forbes. A strong brand name is an incredibly valuable asset. Consumer companies in particular devote huge chunks of time and resources to solidify and expand their brands. “A valuable brand delivers a return for the company on two dimensions,” says David Rubenstein, professor of marketing at the University of Pennsylvania’s Wharton School.
Obviously, Apple was the one which topped the list with almost double the brand value of Microsoft. Microsoft’s brand value was at $63.0 billion, up 11% from last year.
Microsoft MSFT +0.13% ranks second with a value of $63 billion, up 11% after being flat the previous three years, as the brand works to make the transition to a mobile world. Microsoft has recently had more success with its move away from the PC and software licensing model towards cloud offerings.
Microsoft inked a five-year, $400 million with the NFL last year. The pact includes Surface tablet computers on the sideline in 2014 that download high-def photographs of plays as they occur. Microsoft has witnessed the power of the Apple brand with the sponsorship, as announcers and players repeatedly refer to the Surface tablets as iPads and one player called them “knockoff iPads.” Microsoft is still a bit player in tablets and phones. “There is a lot of catching up to do,” says Rubenstein. “They are going to have to work to overcome the brand disadvantage they have in those areas.”