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What were the effects it had on the company? They just mention the stock tanking which, by itself, is pretty meaningless. I'm assuming people stopped buying the
by SomeOtherThrow 7y ago
What were the effects it had on the company? They just mention the stock tanking which, by itself, is pretty meaningless. I'm assuming people stopped buying the stuff?
Secondly, why did it have any effect? Who would change their practices because of this? It really rams home how deeply brands are integrated into our understanding of value.
How depressing.
- spzb 7y agoIt became a national joke in the UK. Nobody would be seen dead going into one of their stores or giving their jewellery as a gift. It basically put them out of business : https://www.theguardian.com/business/2014/aug/22/gerald-ratner-jewellery-total-crap-1992-archive https://www.theguardian.com/business/2014/aug/22/gerald-ratn...
- Axsuul 7y agoBut did it really put them out of business? They did a re-org as Signet Jewelers and is now the world's largest retailer of diamonds.
- spzb 7y agoAs a brand it put Ratners out of business. Your average man in the street isn't aware of the corporate structures behind the high street brands.
- SomeOtherThrow 7y agoThat's way less of an exciting headline, though. The company is the only way to realize the value of a brand, and if the company is still doing fine today, it considerably weakens the lessons here: it's apparently not even that bad in the worst case scenario.
- TheCoelacanth 7y agoThey did manage to salvage the company, but they lost hundreds of millions of dollars in the process. It was an absolute disaster for them.