By Michael Briggin
Ever wondered why you aren’t getting enough attention, cash flow, clients or customers for your business?
The answer may not necessarily be because companies like Amazon.com or Netflix are eating your lunch. In fact, it’s quite possible you have not been educated in terms of how to think and act from a marketing strategy standpoint.
Back in the 1990’s when the dot.com era produced significant growth for Silicon Valley in areas like the Peninsula and South Bay regions of the Bay Area, California, there were plenty of retail store chain companies such as Borders as well as Tower Records which were starting to seize on the possibility of maximizing profits by having their own websites up.
However, it was years later that both companies’ customers heard the devastating news:
Borders Bookstore Chain to Shut Down
As expected, the bankrupt Borders Group will be liquidated after it failed to find a last-minute suitor to save the 40-year-old bookseller, The Wall Street Journal reports.
The company announced this afternoon that it will ask a federal judge on Thursday to approve the previously announced sale to liquidators led by Hilco Merchant Resources and Gordon Brothers Group. Liquidation of Borders’ 399 remaining stores could begin by Friday, leading to the loss of about 10,700 jobs. What was the second-largest book chain in the United States will no longer exist by the end of September
Tower Records, a venerable but bankrupt chain of more than 90 U.S. music stores, including two in Seattle, is going out of business after its sale Friday to a new owner.
A federal bankruptcy judge approved the sale of the Sacramento, Calif.-based company at auction for $134.3 million to Great American Group, a Los Angeles liquidation firm.
Peter Gurfein, a lawyer representing the 46-year-old chain, said it will be sold for a total of $150 million, including the sale of various leases and properties. Gurfein said Great America plans to begin the liquidation and going-out-of-business sales today.
What are the two key issues which led to both Borders and Tower Records corporate headquarters’ demise and the shutting down of all their store locations?
- Cash Flow Issues
- Not adapting quick enough and conceiving of business plans strong enough to retain their regular customers and get new ones.
Lesson learned: Don’t point fingers at those who are stealing your lunch. Instead, concentrate on effective marketing strategy so you can stay ahead of your game.
You don’t need to be a corporation to do this. You can be a local independent coffee shop, small law firm or used book store and learn the lessons of Borders and Tower Records. If you are shutting down, it is not because there’s no business.
It’s because you need to adapt better and get insight from credible consulting companies who can help guide you in terms of how you can achieve more in your business goals.