Why Do Businesses Fail?
Businesses fail for many reasons. Some of the time it’s because of an outside factor such as a shift in technology. Other times it’s due to something internal such as a company ignoring things like customer service, or the quality standards of their products. While still there are other situations where the company had a great product, and they had great customer service, but they simply didn’t make people aware of what they had to offer. Marketing, or lack there of is all too often to factor that will make or break a business.
Imagine that a new coffee shop goes into your local strip mall. They of course have a big sign with the name of the coffee shop above the door. Inside they have a warm and inviting place for people to sit and drink their coffee, and read their paper or talk with their friends. Behind the register they have a friendly staff and they brew all sorts of excellent coffees. They are bound to be successful right? Wrong… where is the advertising? Where is the viral marketing campaign? Where is the social media marketing campaign that rewards people for tagging the shop in their posts? Where is the value proposition? Why should anyone go to Chris’ Coffee Shop rather than the local Starbucks?
This is of course a specific example but the model can be applied to just about any business in just about any industry. There must be a well planned and well executed marketing strategy in order for a business to reach its maximum potential. Without that it’s going to be a constant struggle to stay in business.