What do Apple , Starbucks , Disney , and McDonald's all have in common? Besides being massive corporations, they all possess widely recognized consumer brands. This has been a big contributor to their long-term success and relevance.
The world's leading apparel and footwear business , Nike (NYSE: NKE) , undoubtedly belongs in that list of the most powerful brands out there. But is the company's brand really its most important competitive advantage, and therefore, the key to all its success ? Let's take a closer look.
Warren Buffett, arguably the greatest investor ever, looks for a company he's interested in to have an economic moat, or something that allows it to fundamentally outperform rivals, especially when it comes to revenue and profits. In Nike's case, it's clear that its moat stems from having one critical competitive advantage, its brand.
For further details see:
Is This Nike's Biggest Competitive Advantage?