Ma Bell: Do Not Resuscitate

Thanks Juan for sending this story my way. It seems that AT&T is hanging up the DNR sign on their residential business. This story offers a look at how brands evolve from being the all-inclusive former Big Bell to an entirely new entity that strives to superserve a smaller segment of their former domain. Laura and Al Ries call it divergence.

Experts say that among companies that sell primarily to other businesses, the winners have been those that have associated their brands with solving problems, not products.

That may yet be the saving grace for AT&T, as it focuses largely on corporate customers, Ms. Hopelain notes. "Business customers are just a lot less likely to keep switching providers, particularly if they are getting a lot of service,'' she said. "To stay relevant, a brand has to parlay its expertise to meet its customers' needs. And AT&T may still be able to do that. ''

The New York Times > Business > Media & Advertising > Advertising: Yet Again, a Brand Name Loses Its Magic