While I am not convinced Eddie Bauer is a particularly strong brand (this week in Boston a quick tour suggest around 75% of the stock was on sale – which explains the loyalty but not necessarily the brand strength). Even if you accept Fiske’s contention that his brand is strong, his business still stinks.

Just because you have some brand equity does not mean all will be well. Does EB have enough brand equity to achieve a price premium that will enable the chain to make a profit?

It’s just like poor old Volvo, and soon even poorer old Saturn. Yes there is some residual brand equity there – but not enough to fix broken business models in competitive categories where other organizations have much leaner costs, much better product and much strong brand equity.

Brand equity is a vital element in most organizational success stories. But just because you it – does not mean you eventually succeed.

Nice post and great quote from the CEO!

Eddie Bauer needs to figure out what their customers actually want to BUY. Then they will be a company worth buying.