Corporate Eye

...compare, compete, excel

Susan Gunelius

Susan Gunelius

Amazon Soars, eBay Tanks – Which Brand Will Win in the End?

ebayA year or so ago, eBay made the decision to change the fee structure it charges sellers as well as a few other aspects of its business model that ultimately hurt both sellers and buyers looking for bargains on the top auction site. 

Remember, eBay began as a second-hand merchandise auction site where anyone could try to make a few bucks and get rid of clutter in their homes while buyers benefited from great prices that left more money in their wallets.  When eBay made significant changes, the brand was tarnished and neither sellers nor buyers felt like they were benefiting anymore.  Suddenly, a site where anyone could compete on semi-even footing now became a site that featured primarily new products sold by retailers and eBay stores — and not through auctions!

That still doesn’t explain why Amazon is reporting a nearly 25% increase in revenue during the first quarter of 2009 over the same period a year earlier and eBay continues to report losses.  Naturally, eBay blames their decline on the economy, but is that really the case?  Have you tried to buy or sell anything on eBay lately?  From the seller’s perspective, it’s very difficult for individual seller’s to compete, and from the buyer’s perspective, it’s harder to find good deals than it used to be.  However, I argue that you can’t compare Amazon and eBay for one very simple reason (and this is coming from the consumer side, because I shop at both sites although I always check and prefer Amazon first).  Shipping costs! [Read more…] about Amazon Soars, eBay Tanks – Which Brand Will Win in the End?

Mini Cooper Introduces the 21st Century Mood Ring

mini_cooperIt’s hard to believe that it has been about 40 years since the mood ring was invented and became the “cool” product that everyone had to have.  If you thought mood rings would never make a sweeping come back, you’re right (although there have been attempts).  However, that doesn’t mean the color morphing concept died with the mood ring. 

This month, Mini announced its first foray into creating a car that changes color based on ambient temperatures — the Mini Chameleon. [Read more…] about Mini Cooper Introduces the 21st Century Mood Ring

NFL Brand Expansion Across the Pond

In another attempt to expand global interest in American football, the BBC reports today that the NFL is in serious talks with London to host the Super Bowl in the not so distant future. 

This isn’t the NFL’s first attempt to boost interest in the sport to markets outside of the United States.  Over 80,000 people showed up to the NFL games played at Wembley Stadium in 2007 and 2008.  The question is whether or not that level of interest can be sustained (or grow) and how widespread that level of interest would be.

There is certainly money to be made by expanding the NFL globally.  The advertising opportunities alone are enticement enough for the NFL and sponsors to push hard for a stronger international presence.   Perhaps a bigger problem is the fact that Super Bowl games are rarely that exciting.  In fact, with a few rare (but welcomed) exceptions, one team typically dominates.  It’s not necessarily the best representation of the game.  But it’s certainly a good show!

And how much higher can players’ salaries go anyway?  How about reducing ticket prices? 

Okay, my consumer complaint is over.  Back to the subject of branding.

When a brand saturates its existing markets, the next logical steps are brand extensions and market expansions with new products and distribution.  The NFL is at stage 2.  Will it work?  What do you think?  Take the poll below, and then leave a comment to share your opinion with Corporate Eye readers.

How Important is It for Brands to be Green?

recycle_earth-dayWith Earth Day upon us, I’ve been thinking about green brands and companies that focus heavily on spreading an environmentally-conscious message.  Unfortunately, not as many well-known, international brands come to mind as one would hope and expect. 

I’m not saying there aren’t industry leading brands that hype their green initiatives.  There are plenty of those, but how many of those messages do consumers truly believe?  And how many of those messages actually motivate consumers to purchase one brand over another?  Do you buy products from Walmart because Walmart participates in eco-friendly activities, or do you shop there because it’s cheap and convenient?

What’s my point?  It’s simple.  It’s easy enough for brands to jump on the green bandwagon.  The big players sponsor environmental events, match donations to environmental nonprofit organizations, and hype their in-office recycling programs, but how many of them actually “live” being green?  How many of them have, “Lead the industry in quantifiably helping the environment,” on their list of strategic imperatives  (notice the use of the word quantifiable, meaning measurable)? [Read more…] about How Important is It for Brands to be Green?

Starwood Sues Hilton Over Denizen Brand’s Fast Launch

hilton_hotelAn interesting story is out this week from the hotel industry. In June 2008, two executives from Starwood abandoned ship and headed to Hilton. Roll the calendar ahead to March 2009, and Hilton announces it is launching a new luxury lifestyle hotel brand, Denizen. Enter Starwood who thought Hilton was launching this new brand a bit too quickly. Roll the calendar ahead again to April 2009, and Starwood sues Hilton claiming that those two executives who changed teams back in June 2008 stole over 100,000 confidential files.

The lawsuit alleges that it was because of those 100,000+ files about Starwood’s luxury W hotel brand that Hilton was able to launch the Denizen brand much more quickly than they would have been able to without those files. Hilton’s response? They’re going to fight the case claiming it is without merit, and they have no plans to stop the rocket-paced launch of Denizen. [Read more…] about Starwood Sues Hilton Over Denizen Brand’s Fast Launch

Brand Names Come Back from the Dead – What Do You Think?

linens_n_things_bankruptcyThere’s a new trend in the branding world (well, not entirely new, but certainly growing in popularity lately) — reviving brand names from the depths of bankruptcy (via the New York Times). Recently, Linens ‘n Things, Sharper Image, Bombay, Halston, and CompUSA have all been given a second chance at life — albeit a shadowy version of their former lives — thanks to liquidators (they prefer to be called “asset recovery specialists”).

So what exactly is going on? [Read more…] about Brand Names Come Back from the Dead – What Do You Think?