Wall Street Predicts These Car Brands are Gone by 2014: Mitsubishi, Olympus, Volvo and Other Brands
It has been an annual practice for 24/7 Wall St. to identify brands in the United States in danger of disappearing. For this year, car and tech companies are not exempted. Wall Street's latest list of brands on the brink of extinction shows the stiff and cruel competition among industries - falling behind financing, innovation and efficiency can cost even some of the most well loved brands.
The featured lists also shows how trends in the market and industries can address or worsen specific brands. Surprisingly, two magazines made the list - Road & track and Martha Stewart Living. The last few years were hard on the two publications as advertising revenues continue to drop. The weight of publishing includes spending for printing and distribution. Most competitors are online now. They do not have the same expenses.
Consumer electronics is not safe as well. There are several brands Wall Street noted to be on the danger zone. For example, Barnes & Noble Nook faces tough competition from better-selling and more popular products from more popular brands or companies. Amazon and Apple are two leading players consumer electronic wannabe companies should be prepared to compete with.
The e-reading business remains unstable posing doubts whether the industry is worth investing on.
The market could be saying goodbye to Olympus digital camera. Point and shoot models are receiving a hard blow from the latest smartphones. The increasing quality of cameras on phones could spell the end for many models.
The car industry has always been a steady player on the market. However, car companies are always tiptoeing. Brands and models should sell for a company to stay. As car sales increase by the day in the United States, car companies should make sure their market shares are more than half a percent. If not, they will not gain as much as ground against giants like General Motors or luxury brands like Mercedes-Benz.
Suzuki closed last year and Volvo and Mitsubishi might follow soon.
There are several reasons why brands are considered under the list in one of the largest markets in the world. These are as follows:
- Low sales and high losses
- Information from parent company or brand that business might go out soon
- Increasing costs and expenses not compensated by revenues
- Sold companies
- Bankruptcy
- Customer loss
- Declining market share