Does having a brand that is successfully come with a downside? It could be when it’s focused on the wrong solution for the market, such as what happened with Blockbuster.
In the same way that H. C. Lucas, Jr. mentions in his book, which is a fascinating read, The Search For Survival: The Lessons From disruptive technologies (Ref. 1)
“Blockbuster was linked to a physical shop, and customers visit the store to rent films. Netflix’s name is associated with the Internet, and the distribution of DVDs was a task it needed to manage until it was able to negotiate an agreement to purchase enough films to make them available on the internet. The reason for the failure of the Blockbuster mail DVD program was because it was so successful in establishing the image of a company that said, “come to our convenient movie store.”
What is important is what a brand’s image is to its consumers. Are these brand associations, which consumers create, stand through time?
Do companies need to establish identity and brand values that aren’t tied to a specific product or market segment?
Brand Life Cycle The Challenges
Certain brands are able to be able to pass this test and last for years, or even hundreds of years. Some brands bloom for a brief period and then fade into the book of business histories.
Disruptive technology is one of the factors that is having a direct impact on a variety of organizations.
The challenge in this regard is the fact that there are a variety of technological developments co-occurring. This includes those relating to the Internet of Things (IoT) technological advances in mobile devices as well as the wide range of digital marketing techniques, cloud computing as well, Artificial intelligence(AI) as well as the web itself.
For specific organizations, this new technology has caused huge issues for some companies. For example, the book market required a change because of the growth of online booksellers and the subsequent shifts in buying behaviour.
Other times, new technologies have effectively ended their product line. Manufacturers of audio cassette tapes, for instance.
Other Change Factors
Brands aren’t products or services. It’s a collection of emotional and mental associations that the business has with its customers. Along with the advantages or benefits they offer to the user.
In light of this technology, it’s not the only factor that is affecting brand managers.
Consumers themselves alter their tastes as well as their values and beliefs over the course of. Even if brands are successful in attracting certain generations but eventually or not, they’ll die.
9 Options in the Face Of Change
There are numerous strategies to improve the longevity of an established brand.
At A Brand At A Brand (Ref. 2)
Incorporating new lines of an existing brand in response to changes in the market
A new distribution channel, e.g. the addition of a mobile app or an online store
Facelifts, innovations and updates that continue to enhance or improve it
Re-positioning the brand in order to move in line with current trends
They could be sufficient depending on the intensity of the market changes. But, there is the possibility that playing around with the brand will only delay the need for a bigger fundamental change in the organisational structure.
At an Organizational Niveau (Ref. 1)
If the impact of the deal or the opportunities brought about by the change are significant enough, then further organisational changes are necessary in order for a brand to last. There are a variety of options to consider:
The concept of morphing into a new business
In addition, we have added a business division
Eliminating business lines that are no longer in use
Merging or buying other companies
Closing the business
With all the economic, political and technological changes taking place in the present today, we are living in fascinating times.
1. H. C. Lucas, Jr., The Search For Survival Leçons from Disruptive Technologies, Praeger, 2012.