INNOVATIVE APPROACH TO AN ICONIC BRAND

P&G Takes Tide to the Cleaners – The Wall Street Journal.

Tide is a leading brand in the laundry detergent market. Clever brand extension by P&G to enter the laundry service business leveraging Tide’s brand appeal.

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New Pfizer

Pfizer to Merge Off-Patent Drug Business With Mylan – The Wall Street Journal.

Pfizer, a global leader in pharmaceuticals, continues its restructure. Pfizer followed the trend of ridding itself of its consumer health business not that long ago. Now, it will merge it’s off-patent product portfolio with Mylan in a new entity. It also recently acquired Array Biopharma.

GOING PRIVATE

Barnes & Noble Nearing Deal to Be Acquired by Elliott Management – The Wall Street Journal

Barnes & Noble is set to go private. The interesting part will be the change in strategy that Elliot Management may implement. The largest physical book retailer in the United States faced many years of decline, despite catering to the tech needs with the Nook devices and app.

The perpetual growth and expanse of technology severely impacted the viability of making bookstore chains and libraries. While some people enjoy the feel and smell of an actual book, others gladly trade away the experience for the convenience associated with digital books, possessing numerous books on a single device. Moreover, the availability of programs that read the book aloud is something hard to pass up.

Some libraries countered the trend by adapting their services and space utilization to better serve their communities. Many provide classes, worker assistance, tax services, and other services  beyond book and video rental. In addition, many provide convenient spots for people to study or work in quiet and semi-comfortable environments.

A path forward for Barnes & Noble may include some similar elements. One may suggest adopting an internet cafe model to some degree, reducing inventory cost by trading bookshelves for tables and chairs. Additionally, it might want to provide access to certain content exclusive to the in-store experience or subscriber network. Balancing the dwindling market for physical books with the desire for convenient spaces to work or surf the web may be appealing and profitable.

Barnes & Noble has partnerships with some colleges for supplying books and operating the related stores. Also, it has partnerships with Starbucks for on-site cafes, which could help expand the internet cafe idea. Barnes & Noble has many opportunities to avoid the fate of Borders and others if it makes strategic choices.

The public will wait and see.

THAT WAS QUICK

Source – AAF to immediately suspend operations (ESPN)

Although not official, many sports news agencies are reporting that the AAF will suspend operations and move towards folding short of completing their inaugural season. The spring football league some hoped would serve as a talent farm for the NFL, where the fringe players could harness their skills. Unfortunately, the league is struggling financially.

Football is king in the American sports world, but it needs to fit into a convenient block of the calendar year. After the Super Bowl, sports fans continue to watch potential free agent news while shifting to other sports. One has to question whether competing with the NCAA tournament was the best approach. Combine the interest in the NBA playoff run and Opening Day in MLB, there might not be a convenient window for another football league.

Given the potential quick hook for the AAF, one must question whether resurrecting the XFL makes any sense. The financial situation for the XFL is much different.

SEARS CUSTOMERS

How Sears Lost the American Shopper – The Wall Street Journal.

The above article is a great read on how an iconic American company lost it’s way.

Sears made many mistakes along the way. The lack of concern about the rise of Walmart, Best Buy, and Home Depot. The merger with a bankrupt KMart. The clear lack of concern for store maintenance and appearance. The biggest one was not really knowing its customers and prospective customers.

From the above article,Sears did a lot of things first that are now staples of retail. But, their customer base was not one that sought those conveniences. A clear lack of connection was Sears believing its customers would drive 25 miles to purchase an appliance if they had any other option.

Like many mature companies, Sears leadership valued returns more so than customer growth. Profitability in the near term placed greater importance than profitability in the long term. Sears needed to connect with new audiences to augment its base.

Sears was a great retailer that stood by its products. Sears was a fixture in the homes of many generations. The shame is many future generations may not experience the unique experience of shopping at a Sears.