Trademarks – Nike and McDonald

Trademarks – Nike and McDonald

Nike and McDonald’s are remarkable companies; what makes them unique and add value is that both companies have built a recognizable image and reputation in the minds of consumers, making their trademarks highly valuable. Also, they have a reputation for providing consistent quality products and customer experience, which adds value to their trademark. Moreover, the Nike swoosh and the McDonald’s golden arches are instantly recognizable symbols associated with their respective products, adding to the value of their trademark (Fromer). Both companies have a large and loyal customer base, increasing their trademark value. The companies also have a significant global presence in many countries, providing them with a broader audience and increasing the value of their trademark (Fromer). Additionally, both companies continuously invest in innovation, which helps them stay relevant and appeals to customers looking for new and improved products. Both companies have a history of solid business practices and financial stability, adding to the value of their trademark.

The value of a company’s trademark can be affected by factors like brand recognition and reputation. A strong, positive reputation and high brand recognition can increase the value of the company’s trademark, while negative publicity or reputation can decrease its value (Fromer). Secondly, consistently delivering high-quality products and positive customer experience can increase the trademark’s value, while inconsistency can decrease its value (Fromer). Additionally, if there is a high demand for a company’s products or services, it can increase the value of its trademark. On the other hand, declining demand can decrease its value. Finally, competition from other companies offering similar products or services can decrease the trademark’s value. Conversely, having a unique product or service can increase the company’s value.

Reference

Fromer, Jeanne C. “Trademark Ownfringement.” Available at SSRN 4322709 (2023).

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Trademarks – Nike and McDonald

A trademark is an intangible asset that has value to a business. Assume that you are an accountant responsible for valuing the trademark of a well-known company such as Nike or McDonald’s. What makes each of these companies unique and adds value? While the value of a trademark may not necessarily be recorded on the company’s balance sheet. Discuss what factors you think would affect (increase or decrease) the value of the company trademark. Consider your answer from the perspective of various stakeholders.