Brands That Will Disappear in 2016

 

Anything which is “dying” is not to be construed as totally dead. It only suggests the process of it. Even if it’s struggling to breathe; it is, in fact, still alive, and may have a chance to learn from previous follies and re-emerge on the horizon.

Douglas McIntyre (CEO - 24/7 Wall Street) presents a list of 10 companies which won’t be around in 2016. To me, his opinions are not etched in stone. Things and people carry a mystical tendency to surprise the world. Incurable diseases go into remission, infirm make full recoveries and dying businesses get resurrected. Much depends on who is at the helm though, and what strategies are being deployed to incapacitate the diabolical situation. Tell that to Mr. Lee Iacocca and he will inarguably concur. He proved it to the world and authored books about it.

As seen in the video, Douglas McIntyre forecasted the death of 10 businesses in 2016 around three main concerns:

• Companies that have lost most of their customers.
• Companies that have a long history of declining sales figures and losses.
• Companies which have lost a significant amount of market share.

Notice the symbiosis and how well they are interconnected.

Douglas McIntyre says that each brand on this list suffers from at least one of the problems mentioned above and generally several. Be that as it may, in this quantum universe of infinite possibilities, what chances businesses have to survive the downward spiral and regain flight before hitting the ground? Let’s discuss each element dispassionately using the best weapon called commonsense.

1.  Companies that have lost most of their customers: Well, we are all customers. Sentient beings of emotional intelligence don’t just fly south to a different cornfield for no reason. The question is WHY are companies losing their customer base? Even pricing is not always the factor. People look for value and associated benefits. If a company is losing customers, it is forced to ask the following questions:

How well do employees know the brand (internally) and whether or not they are sold on that?

How good is internal communication which results in good external customer service?

What are the USPs of the company – Unique Selling Points – which separates you from the competition and imparts your reason for being?

How well groomed is your sales staff in connecting with customers emotionally?

And most importantly, how happy is your overall employee base?

2.  Companies that have a long history of declining sales figures and losses: That statement immediately brings one thing to mind. The company has a high tolerance of failures and they are lacking focus and inter-departmental teamwork. It also signifies that either the sales staff is bereft of the selling-spark which ignites clients, or there is a major communication breakdown. If your fuel-tank is running low, commonsense dictates to fuel-up before the car coughs and dies. Again, asking WHY will bring clarity to an ambiguous scenario. In the event of a first setback, (a warning sign), what kind of actions were taken and changes made? Ignorance comes with a price tag. Everything begins and ends with employees. If internal issues are not being dispensed with, the external client communication will dull the senses forcing customers to go elsewhere.

3.  Companies which have lost a significant amount of market share: This scenario is common in companies which have grown into a much larger enterprise and have reached maturity. As they get bigger, they also get vulnerable due to many seen and unseen forces. Businesses I work with are not aware that a lifecycle misalignment with their customers could be the chief reason why they lose market share. Instead of evolving, executives hold on to an outmoded organizational structure long after it has served its purpose, because their power is derived from this structure. Horizontal growth as well as vertical growth comes into play here. If you are multiplying your locations/offices/retail outlets but not the supporting product lines, variations of it with a solid supply chain, internal communication and customer care, then brace yourself for a shock-wave. Merger with another struggling entity won’t solve anything either. To thwart this scenario, keep into account:

1. New Leadership Style
2. Due Innovation
3. Superb Co-ordination & Employee Motivation For A Unified Voice
4. Collaboration and Co-Branding (Which Compliments Your Brand)
5. Building Business Alliances
6. Hiring and Grooming Quality Staff
7. Promote from Within

Business failures are directly related to managerial incompetence. Great leadership is the maturity to treat employees respectfully. It works in ways that are difficult to see and quantify. Lastly, don’t just sell the product; provide the buying experience which is easy and fun.