Answered Essay: Brands cannot be expected to last forever’ versus ‘There is no reason for a brand to ever become obsolete.’

Brands cannot be expected to last forever’ versus ‘There is no reason for a brand to ever become obsolete.’

Expert Answer

To understand if a brand can stay forever or will it become obsolete, it is important to define the horizon. What are we looking at, is it a short term? Or long term? Or forever?

In case it is an eternity, we definitely cannot comment because dynamics can change in many ways. The World what everyone saw during 1990s, during 2000s and now are entirely different. In such a fast paced world, all that which can be taken into consideration is only a relatively decent period like some 20 to 30 years.

We all know every decent company/ brand will have a great time of its own. There will be periods of sustained under par ness and periods of magnificence as well. For a brand to survive the longest possible there should be immense capital going into R&D to stay competitive and in fact ahead of current day’s competition. This is where great companies have exceeded. They may have to constantly look for inventions, researches, keep ways to improve brand value, innovations etc. There is that odd risk one may have to take to sustain for a longer period. One such odd risk may back fire and there ends the brand and its value.

But this is not to say all brands will win or all brands will fail. There are certain brands that could have been revived with better management and better innovative lens. There are brands that moved a little slower than their peers and became obsolete one day. Bands should have a good flexibility factor as they have to deviate from their tried and tested formula at crunch tines.

Brands that continue to maintain diversified portfolio of products may sustain in the longer run. This portfolio will help them run through cash crunches, competition, and will let the brand have breathing space if one of the products in the portfolio is misfiring.

Take the example of NOKIA, once leader of affordable handsets in many nations but then they were way behind in the competition. They could not catch the turn of events towards smartphones and now they are almost obsolete though they are striving to get back into markets. Once a household name in smaller and medium growing nations, now it is struggling to get its identity now.

Take the example of Coca-Cola- It had its own share of tough times, but re-invented itself through pain and is still a strong brand.

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