What an idea. We know that most mergers do not work. The only way they could work is if there are some synergies. I see none here. I can just see how disastrous this is going to be.
What we have here is two brands that have completely lost any life in them trying to resuscitate themselves. This will not work for one reason- it will not make a difference in the customer experience in either store.
From Wharton marketing professor, Stephen J. Hoch- "Here you have two retailers who are doing badly right now and who don't really see a clear way to pull themselves out of the downward spiral. It's hard to fathom how combining them is suddenly going to produce a new entity that will do better. That's tough to do, especially because the competition, including Wal-Mart and Target, isn't exactly standing still." (Source: http://knowledge.wharton.upenn.edu/article/1081.cfm)
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(San)deep's World. Wise observations from Prof. Sandeep Krishnamurthy, Associate Professor of Marketing and E-Commerce, author, educator, Dad, coach, racquetball player, evangelist, speaker and thinker.
Wednesday, November 17, 2004
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