Following the Harvey Weinstein allegations, the company began to see a backlash in its business operations. Many business partners cut ties with the studio, and new business opportunities were cut off. Fearing the end of the studio, executives sought a buyer that would keep the doors open and protect their employees. A group of investors, led by Maria Contreras-Sweet, the former head of the US Small Business Administration, saw this as an opportunity to start a movie studio that was headed by women. However, Sunday night a letter from the Board of Directors of the Weinstein Company stated that the buyers were unwilling to provide interim financing while the deal was being finalized. As a result, the company is on track to filing for bankruptcy. The deal hit its major snag a few weeks ago when New York’s Attorney General, Eric Schneiderman, filed a suit against the company and Weinstein.
The Weinstein Company is a perfect example of what can happen when a business’s brand becomes compromised. In today’s world, customers are not just focused on what they buy, but also on where and who they buy their products from. Brand awareness has become a major selling point for products and services and can be a company’s greatest asset. But is can also be a company’s downfall, as we are currently seeing with the Weinstein Company. Companies work hard to promote the ideals that their customers want, and it drives sales. When customers feel like a brand is compromised, they stop buying the products and lose the customer loyalty they built up with their brand. There are hardly any novel ideas in the market today. Competitors push similar products into the market, but in the end, it is the name that sales. Companies need to protect their brand to stay in business. This means they must know not just what their customers want, but they also need to know how their customers want them to act. Businesses must build and protect their brands, it will create customer loyalty and build revenues that will lead to success.
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