Why should a Company change its name?
There are many reasons why a Company should undergo a change of its name. For example, if the Company wishes to enter a new market or rebrand its products, changing the name to align with the industry and products offering can be beneficial.
Many companies find it necessary to change the Company name in order to accelerate their chance of success. It is also to avoid from brand confusion or when targeted audience mistaken the Company product with its competitor with a similar name, acronym or logo.
Some other reasons why a Company should change its name are:
A change of management and shareholders
Shareholders are the actual owners of a Company/business, and they have the right to appoint the management team to oversee the Company day-to-day operation. A case scenario where the biggest shareholder decided to merge the Company with another Company in order to sustain its business in the long run, it normally comes with a rebranding of their products as well as revision of the Company business plan as a whole.
To ensure the targeted audience is reached, then it is advisable for the Company to also change its name to grow simultaneously with the product itself.
The Company product suffers from brand confusion
It is common for this type of scenario to occur especially within the F&B industry. For example, customers who loves to eat burgers tend to mistake those from McDonald’s and Burger King. Hence, the result of very unique menu from both of these franchises. Everyone now knows that Big Mac definitely comes from McDonald’s while a Whopper is of course a product of Burger King.
This type of issue can be problematic for a Company when their product has indeed reached its targeted audience but sadly, the audience confused the brand to their competitor resulting for them to grow more compared to you. Hence, a change of Company name is definitely a must in order to outshine your competitor.
The legacy Company name no longer works
It is common practice for a Company especially those from professional services firms register their name after their founder. Common examples in Malaysia are, Yuen Tang & Co., Menara Tun H. S. Lee, Syarikat Ban Lee and many more.
However, by maintaining the legacy name can actually cause a problem when the founders have left or long since deceased. Some might think that maintaining the Company name equal to maintaining the long-standing relationship with its clients. However, as time goes by, those clients may be taken over by new management team which may have wished to cut off ties with your Company.
Hence, it is good for a Company to start rebranding their name if it poses benefits in the long run.
The Company name is too generic or mediocre
As mentioned above, a Company name should be unique and different as it can be a distinguishing factor to attract target audience. If the Company name is too generic and unmemorable, then it is as good as time to let it go and start planning for a new catchy name.
The brand name should be something that makes the Company stands out compared to its competitor.