Failed experiments with Diversification — Business Ideas Beware!
One can draw important lessons from studying brands that have failed. However, to ensure that the lessons are relevant, one needs to do a thorough study of the brands.
In some cases, a single dominant factor could explain a failure; however, in others, the failure could have been due to multiple factors. Matt Haig has attempted to study failed brands in some detail. In his book, Brand Failures: The Truth About the Biggest Branding Mistakes of All Times, he has put forward the factors that led to the failure of brands, many of them from the stable of very successful companies.
Some of the lessons are generic while others are specific to the brands. Why Brands Fail Brands create a bond between themselves and consumers; once that bond is broken, consumers of the brand can be quite unforgiving.
Haig identified seven generic reasons for brand failure: In many cases, old, established brands tend to forget what they stand for, what really made them successful. In their quest for higher growth, they end up making a move that could prove disastrous.
A classic example was the launch of new Coke. Coke was facing intense competition from Pepsi in the s and taste tests were showing that younger consumers increasingly preferred the sweeter taste of Pepsi.
In a move that is now considered cataclysmic, Coca Cola decided to change the formula of Coke and launched new Coke. The backlash from the consumers was so intense that the Coca Cola Company had to reintroduce the original formula as Coke Classic.
Sometimes, success makes some brands overestimate their importance. In these cases, the brands end up making one of two mistakes: If brand ego was not bad enough, some brands make the mistake of expanding into every conceivable product category.
Some like Virgin succeed, at least for the time being. However, there are innumerable examples of brands, especially from Japan and Korea, which have just gone under.
You can fool some of the people some of the time. However, in this connected world, deceiving consumers is a foolish strategy that has very little shelf life. Being honest about your brand and product is increasingly the only worthwhile strategy.WriteWork is the biggest source online where you can find thousands of free school & college essays, research & term papers, book reports in over categories.
Register now for totally unlimited access. Ansoff growth is a two by two growth vector component matrix. It was first published in Harvard Business Review in in the article “Strategies for Diversification”.
Since then, this matrix has been widely cited by academicians and used by practitioners proving its efficiency in marketing growth strategies. Ansoff’s product/market growth matrix suggests that a business’ attempts to grow depend on whether it markets new or existing products in new or existing markets.
The output from the Ansoff product/market matrix is a series of suggested growth strategies which set the direction for the business.
Igor Ansoff first devised and published The Ansoff Matrix in the Harvard Business Review in , within an article titled "Strategies for Diversification". The grid/matrix is utilized across businesses to help evaluate and determine the next stages the company must take in order to grow, and the risks associated with the chosen strategy.
The second part of the paper examines Lazard using the tools of Mckinsey's 7 S's Model, Ansoff's Matrix, Porters generic strategies, BCG Matrix and the blue ocean strategy. The bibliography cites 38 sources. Kodak and Blockbuster failed because they failed to appreciate the change in the environment brought about by new technology and it was left to others to appreciate the opportunity and reap the rewards.