Reminder from the Grave

I never thought that business news would make me laugh but here’s the story that made it happen.

Many investors blinded by excitement mistook the shares of Tweeter, a bankrupt consumer electronics retailer, for that of social media giant Twitter’s.  A number of shareholders traded Tweeter’s virtually worthless shares inducing a rise in value by more than 1,000 percent since its closing on Thursday at less than a penny a share.

One of Tweeter’s stores.
Click to link to original source

Originally, I had been planning on writing about Twitter’s filed IPO, a serious topic, similar to Henry Bian’s post here. However, I could not pass up on fine humour and the article made me wonder about Tweeter and its downfall.

The company had previously operated in a wide market using differentiation as their marketing point. The specialty electronics store had many products that no other store offered but at high prices, so high that customers were less willing to buy. In addition, their strategy eventually became blurred as the company began many acquisitions causing Tweeter to lose its identity in a panic when other competitors surged forward. I strongly believe companies should focus on one business strategy, as when trying to please everyone, you please no one.

 Original source: http://www.theglobeandmail.com/report-on-business/international-business/us-business/tweeter-home-shares-explode-on-apparent-twitter-mix-up/article14700115/

Other sources used: http://www.cepro.com/article/the_rise_and_fall_of_tweeter/