This year is deemed to be even more challenging for companies and products. As the market becomes more complex, and consumers have more expectations as to what the brands offer, companies can easily make huge branding mistakes. These mistakes could prevent them from capturing their desired market share, beating their competitors and tapping into their full potential. Geoffrey James, contributing editor at Inc.com, predicts the 5 brand disasters that five famous global brands will experience this year:
Yahoo’s CEO Marissa Mayer attempted to change the search giant’s corporate culture for the better, but all in vein. She’s tried to change Yahoo’s ingrained culture but with blundering methods. Mayer has limited flexible perks such as telecommuting and she has also tried acquisitions that didn’t yield the desired results. At the moment, Yahoo’s market share remains steadily low at 7.79% while Google remains the most popular, with a market share of 62.74%.
James predicts that Yahoo will either be acquired by another company or warn its employees of massive layoffs.
Unquestionably, Windows 8 has been one of the biggest blunders Microsoft has ever made. It seems that Windows 10 will suffer the same fate as Windows 8 (although they are supposed to mark a new beginning). First of all, less and less individuals are willing to bother to make hands-on changes to the operating system. Second, there’s no reason to have a tablet interface on top of an operating system whose basic design is 20 years old. At the same time, Apple has added a mouse interface to the iPad, a move that could reduce the need of buying a tablet that supports Windows.
Most probably you are aware of the controversy surrounding Uber, the mobile phone app that connects you with a driver for hire. Well, although it has taken the world by storm, two things are likely to threaten its success this year: First, government regulation and second, the management’s inability to protect the service’s image. It is clear that the introduction of the app meant a return to an obsolete business model at the core of which is the operation of unregulated taxis. This is not going to work in most Western countries. Meanwhile, the management, does nothing to deal with customers horrifying stories that debase the brand. Inevitably, Uber’s stock price will crash.
Back in 2013, experts were saying that Google+ would outdo Facebook by 2016. But all these proved nonsense. Until recently (end of 2014) Facebook had 1.35 billion users and Google+ only 345 million. It is predicted that after increasing losses of market share, Google will make Google+ nonstrategic and jettison it two or three years from now.
Bitcoin, the virtual currency that grabbed our attention a few years ago, was initially seen as the next big thing in the global economy. However, the Bitcoin brand saw its reputation declining when it became associated with criminal security. The fact that the world’s central banks have failed to accept it en masse and the absence of regulation to stabilize its value will further contribute to its downfall this year.
Well, only time will tell whether these predictions stand. What do you think of the brands cited above? Will they experience a downfall as it is predicted? Let us know in the comment sections below.