Recent figures have shown the success of American brands that expanded internationally and are reaping the successes. Netflix, Amazon, and Apple are just three brands among many that are financially soaring at the moment. We’ve taken a closer look at their successes.
The American brand has seen profits rise in previous years as the streaming service rolled out into over 190 countries worldwide since it was founded in 1997. Last month, YouGov reported that Netflix is the third top brand in the UK. YouGov’s BrandIndex saw Netflix receive a Buzz score (which measures the positive and negative things said about a brand) of 14 last year.
Aldi took the top place with a score of 18.1 with Lidl in second place with 14.5. Missing out of third place was BBC iPlayer with a score of 13.2. This is the first time since 2014 that BBC iPlayer ranked outside the top three.
YouGov’s Amelia Brophy said: “Jumping above BBC iPlayer is significant as it indicates how effective it has been in delivering its ‘quality original content’ message to both new and existing viewers.”
“In a crowded and competitive market, it has emphasised its balance between quality and value for money,” Brophy added.
Netflix also ranked seventh place in the ‘Most Improved Brands’ category and it’s clear to see why, as the brand recently announced its valuation breaking $100 billion for the first time. This was due to 8.33 million subscribers joining in the last three months of 2017 alone, 6.36 million of them based outside the US.
Programmes such as The Crown, Stranger Things, and Bright have helped draw in new subscribers and despite the high costs of production, (with The Crown costing $130 million) Netflix is certainly reaping in the rewards.
Netflix said it expects to add a further 6.35 million new subscribers in the first three months of 2018 despite competition from Apple, Facebook, and Disney.
It has been predicted by financial commentators and investors that 2018 will herald the first firm with a stock market valuation of $1tn (£738bn) or more, if technology share prices continue to rise as strongly as in 2017.
Apple is leading the race but Amazon, Facebook, and Alphabet (the parent company of Google) are all firm contenders too. Apple’s profit in the last financial year of $48 million is similar to the collective profits of Microsoft and JP Morgan. Pretty impressive considering Apple was on the verge of bankruptcy in 1997.
George Salmon, an equity analyst at stockbroker Hargreaves Lansdown, said: “With Facebook, Google and Amazon attracting an ever-increasing number of eyeballs on screen, the US tech sector has more than played its part in the global stock market rally.”
The top five companies in the world are worth $3.35 trillion collectively which is more than the gross domestic product of every country in the world excluding the US, China, Japan, and Germany. Share prices rose due to President Trump’s tax cuts and continued measureable easing from central banks in 2017.
The latest Brand Finance Global 500, the annual report on the world’s most valuable brands, was published at the start of the month and crowned Amazon in first place with a $150 billion valuation and a 42% year-on-year growth.
The e-commerce giant is the world’s largest internet business in terms of market capitalisation and revenue. Its hunger for expansion is set to continue following a mammoth $13.7bn takeover of Whole Foods in 2017.
Apple remained in second position with a brand value estimation at $146.3bn whilst previous first place Google, dropped to third place due to a growth of just 10% to $120.9 billion.
With Samsung and Facebook completing the top five, this is the first time the global league table consists of solely technology firms.
There is so many to gain from international expansion and profits can soar. If you want to take the leap and expand internationally, find out more about how SquareOne could help you by visiting our website: www.squareone.us.com or emailing us at email@example.com. For all the latest news and updates, follow us on LinkedIn and Twitter.