ABSTRACT Research question • How does companies form their brand identity using social media? Purpose The purpose of this study is to examine and analyze social media’s influence on the brand identity within the sport trade industry, to be able to explain and create an understanding how social media is used to form the identity. Method The study is of a qualitative research method and has a deductive approach with inductive elements. The data which the study is based upon has been gathered by nine semistructured interviews. Conclusion The conclusion of the study is that companies within the sport trade industry forms their identity using social media through a process. The process contains information gathering, positioning, interaction and filtration. The process starts with information gathering which affects the positioning on social media which in turn affects the interaction. The interaction generates more information which in the end is filtrered by relevance and then forms the identity. Key words Brand identity, Social media, Sport trade industry, Customer power