First, branding is a key defense against:

Commoditization – a situation in which a company’s products and services become perceived by buyers as being interchangeable with those of other companies, so buying decisions become driven by price. With the trend toward instantly and globally searchable competition across all product and service categories, the pull toward commoditization is now an elemental force in marketing. The value of branding – intelligent, relevant, branding that effectively differentiates you from your competition – has never been higher.

Branding is also a way to leverage success, expand market share, and fend off competition. Indeed, companies with established brands often rebrand as a way to penetrate perceived new markets or defend core markets. This rebranding is often a costly mistake.