Monica from Jai Hind College asks:


What exactly is brand leverage?



Rational branding is not the only way to build brands on the Web. One method that is working for well-established Web sites is to extend their dominant positions to other products and services, a strategy called brand leveraging. Yahoo! is an excellent example of a company that has used brand-leveraging strategies. Yahoo! was one of the first directories on the Web. It added a search engine function early in its development and has continued to parlay its leading position by acquiring other Web businesses and expanding its existing offerings. Yahoo! acquired GeoCities and, and entered into an extensive cross-promotion partnership with a number of Fox entertainment and media companies. Yahoo! continues to lead its two nearest competitors, Excite and, in ad revenue by adding features that Web users find useful and that increase the site’s value to advertisers.


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