Brand Valuation : A Strategic Tool for Business

Companies across the globe are now increasingly recognizing the power of value of brand as it provides high competitive advantage for business in competitive market place. During the last three decades, the business world has undergone a paradigm shift with the effect of brand as a concept getting attention and becoming an effective tool for retainment and sustenance in the competitive world. Brands are considered to be an asset for a company which increases the worth of the concern. Like any other asset, brand generates revenues and value for the company. However, it is a matter of debate whether it should be shown in the balance sheet or not, and if it is shown, then what should be the financial treatment of the brand and what should be the method of computation of such value of brands. This paper is an attempt to outline the conceptual background of valuation of brand by reviewing the available literature