An Nvidia Challenger Files For An IPO + Can A New CEO Turn Nike Around?
Prof G Markets
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Beware the Brand Moat
Strong brands can create a false sense of invincibility, leading companies to become overly reliant on their brand identity. As exemplified by Starbucks, Disney, and Estee Lauder, even dominating brands can suffer significant declines when they stop innovating and become complacent. The past era of capitalism rewarded mediocre products wrapped in strong branding, but this strategy may ultimately lead to failure if companies do not adapt and improve their offerings. Companies must recognize that brand strength is not a guarantee of ongoing success.
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