Too big to fail? Not for these major brands that may simply disappear before the end of 2011.
Who are these corporations, and why have they failed after weathering the economic storm of 2008? Economically we are seeing many corporations failing, without any chance of the major bailouts lesser brands took in the past.
Some are in publishing, others are a major oil company, and a bailed out financial institution after the previous market crash.
Who are these corporations, and why have they failed after weathering the economic storm of 2008? 1.
British Petroleum (BP) A leader in global oil production which should be expanding as our world faces dwindling oil resources.
Yet the day oil started spilling from the Deepwater horizon exploration rig, in the south of the United states- it spelled the end of the new horizon for BP.
Failing to stop the spill- BP in the states faces billions of dollars of lawsuits, and may have to be broken up globally.
2.
Merrill Lynch Bailed out and now owned by the Bank of America aka the American people.
Merrill Lynch was one of the United States biggest brokerage firms.
It also was a company that many in the US government started their career in- including the current Federal Reserve Chairman.
The company has recently been hit by allegations of corruption and financial scandals, which most likely will not attract any future buyers with it's tainted reputation.
Merrill Lynch's future lays in being asset stripped, dissolved and sold off in parts, but the name could vanish forever.
3.
T Mobile T mobile dominates the uncompetitive mobile phone market in Germany, and is owned by Deutsche Telekom.
In the states T-Mobile is a bit player in a more open and competitive market.
A declining market share, may lead to T-Mobile being closed in the states, but in the more controlled German market, it may still thrive until the market truly opens up.
4.
Readers Digest Popular around the world, and translated in over 60 languages worldwide, Readers Digest in the United States just emerged from insolvency this year.
Whilst the American edition is running at huge losses, overseas editions are still making a profit.
We could see Readers Digest disappear forever from the US, but remain as a "localized" magazine overseas, maintaining the brand name.
5.
Blockbuster Online movies and DVD's by order killed the video star, which failed to adjust to a new online age.
Since 2008, Blockbuster stores have seen continued decreases in their market share, and many have already closed shop.
What was once a market leader in the new age of video, now looks to be finally buried in the golden age of the internet.
6.
Moodys Corp Once everyone looked to Moody's to see what ratings it gave Governments and Corporations.
The company was trusted globally, until after 2008 reports grew about how the ratings agency compromised its ratings to secure business.
A bond of trust was broken, as were billions of dollars of investments lost -based on Moody's ratings.
As this former giant faces legal actions, and the wrath of suspicious governments- it is doomed to close.
7.
Kia Motors The recession has badly hurt the automobile industry, and Kia could be the next brand to be ditched by its owner Hyundai.
A marginal brand that produced smaller cars, faces too much competition, and a declining market.
Hyundai are looking to consolidate its business, and Kia is the obvious target for closure.
Many of these businesses were once proud market leaders, but eventually failed because of declining markets, a failure to adjust to new competition, and in some cases because of financial incompetence.
In 2011, the message is clear, unlike 2008- no company is too big to fail.
Who are these corporations, and why have they failed after weathering the economic storm of 2008? Economically we are seeing many corporations failing, without any chance of the major bailouts lesser brands took in the past.
Some are in publishing, others are a major oil company, and a bailed out financial institution after the previous market crash.
Who are these corporations, and why have they failed after weathering the economic storm of 2008? 1.
British Petroleum (BP) A leader in global oil production which should be expanding as our world faces dwindling oil resources.
Yet the day oil started spilling from the Deepwater horizon exploration rig, in the south of the United states- it spelled the end of the new horizon for BP.
Failing to stop the spill- BP in the states faces billions of dollars of lawsuits, and may have to be broken up globally.
2.
Merrill Lynch Bailed out and now owned by the Bank of America aka the American people.
Merrill Lynch was one of the United States biggest brokerage firms.
It also was a company that many in the US government started their career in- including the current Federal Reserve Chairman.
The company has recently been hit by allegations of corruption and financial scandals, which most likely will not attract any future buyers with it's tainted reputation.
Merrill Lynch's future lays in being asset stripped, dissolved and sold off in parts, but the name could vanish forever.
3.
T Mobile T mobile dominates the uncompetitive mobile phone market in Germany, and is owned by Deutsche Telekom.
In the states T-Mobile is a bit player in a more open and competitive market.
A declining market share, may lead to T-Mobile being closed in the states, but in the more controlled German market, it may still thrive until the market truly opens up.
4.
Readers Digest Popular around the world, and translated in over 60 languages worldwide, Readers Digest in the United States just emerged from insolvency this year.
Whilst the American edition is running at huge losses, overseas editions are still making a profit.
We could see Readers Digest disappear forever from the US, but remain as a "localized" magazine overseas, maintaining the brand name.
5.
Blockbuster Online movies and DVD's by order killed the video star, which failed to adjust to a new online age.
Since 2008, Blockbuster stores have seen continued decreases in their market share, and many have already closed shop.
What was once a market leader in the new age of video, now looks to be finally buried in the golden age of the internet.
6.
Moodys Corp Once everyone looked to Moody's to see what ratings it gave Governments and Corporations.
The company was trusted globally, until after 2008 reports grew about how the ratings agency compromised its ratings to secure business.
A bond of trust was broken, as were billions of dollars of investments lost -based on Moody's ratings.
As this former giant faces legal actions, and the wrath of suspicious governments- it is doomed to close.
7.
Kia Motors The recession has badly hurt the automobile industry, and Kia could be the next brand to be ditched by its owner Hyundai.
A marginal brand that produced smaller cars, faces too much competition, and a declining market.
Hyundai are looking to consolidate its business, and Kia is the obvious target for closure.
Many of these businesses were once proud market leaders, but eventually failed because of declining markets, a failure to adjust to new competition, and in some cases because of financial incompetence.
In 2011, the message is clear, unlike 2008- no company is too big to fail.
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