Corporate challenge: Retail stores have been affected by an economic downturn in a city. Most of the loyal customers have moved to a neighboring city that has economic growth. The brand cannot survive with the remaining customers.
Ironbound Strategy: Use the economic downturn as an opportunity to create brand extensions and provide more value to loyal customers.
Ironbound action: Open a retail location in the new city to maintain the loyal customers. Modify the original location to reflect the needs of the remaining customers. Creating a down market brand extension can help keep the original location profitable while growing the brand in the region.