Social media platforms like Facebook and Instagram have pushed businesses to maintain a transparent business-to-consumer relationship. The rising tide of objections quickly turns into notifications. With a little more traffic, the viral trends start having a debilitating effect on big B brands overnight.
To the organization’s challenge, this has led corporate sector agents to tread lightly with their brand presence. We have all seen how multinational companies have tried dipping their feet and then backed off last minute. Is it profitable to back out? How does it affect the company’s stead? And what is the best strategy to warranty corporate success?
In this article, we will cover all the queries while highlighting a successful strategy that guarantees financial recovery. To start with, let’s look at the turnaround strategy example that different brands have adapted over the years.
The rise of Apple is a basic children’s story for aspiring entrepreneurs. After the resignation of Steve Jobs in 1985, Microsoft Windows took over the tech market by introducing lower-priced products. The result? The company saw a major decline in sales, popularity and product innovation for 12 years. 12 years till Steve Jobs joined back in 1977 and introduced iMac earning Microsoft an equal competitor.
Their turnaround strategy? It was to rebrand their dying brand identity that raked up $300 million of revenue in a year.
Martin Goodman founded Marvel in 1939 and was victorious in producing pop superhero films like Captain America, Sub Mariner and the Human Torch.
Till the 1980s, Marvel made big bucks that rounded up to $1million in its initial years. On their theatrical release of Howard the Duck, it cost them a $15 million loss with the movie being highlighted for the most expensive flop in the movie industry.
On the contrary, DC Comics began crushing Marvel with big hits like Batman and Superman. This financial steep for Marvel drove further down when their best writers left to create a company of their own.
Their turnaround strategy? They merged with potential growing companies like Toy Biz and gained back their ground with Spiderman and X-men. In 2009, Marvel joined hands yet again with Disney this time to give us big hits like Black Panther, Iron Man and the Hulk.
Starbucks – despite being a client centric organization – saw a major meltdown when it sought to expand towards Midwest and British Columbia. This led Starbucks to remain in its homeground store in California.
A decade later in 2002, it managed to build 6000 stores across the globe. Although this was initially seen as a success but Starbucks was being pushed to close down 1000 of its stores and suffered a 23% financial loss.
Their turnaround strategy? They rolled out a campaign called “My Starbucks Idea.” Through this hashtag, they were able to bring around 90,000 ideas from starbuck fans that shared their thoughts on how the company should proceed.
This garnered their facebook page around 5 million likes and countless suggestions. By the end of the campaign, Starbucks was able to implement 100 best ideas given by professional baristas and coffee lovers.
To their success, Starbucks took off to expand 27000 stores worldwide and has employed 250,000 employees to date.
The Giveaway Strategy
As a closing note, let’s go over a prevalent strategy that has enabled corporations to regain their composure despite major struggles.
The Turnaround or the Retrenchment strategy was previously met with shame by many organizations. But what have we learnt so far? Going back to the traditional ways that work or bracing failure with grace proves to be a resilient coping mechanism for organizations looking to get their big breakthrough.
If prominent companies have found global success in retracting back and rethinking their stances, then it sure is a safe bet for entrepreneurs to take a step back to go two steps forward!