Generally speaking, the change of enterprise name may involve the change of the whole name of the enterprise (group), the change of the name of the subsidiary and the simple trademark change. Simple trademark replacement is generally a change in the marketing strategy of a certain business of an enterprise, which has little impact. The influence of renaming is generally wide, which will also lead to the change of trademarks. The following is a special analysis of the motivation and influence of enterprise name change.
There are roughly six motivations for changing the name of an enterprise:
One is to improve the corporate image, especially when the company has a history of scandals, financial difficulties, major lawsuits, etc. Changing the name of an enterprise is an effective way to improve its image.
Second, if the original enterprise name is not prominent or catchy, or the original enterprise name is not as well-known as its leading product brand, the enterprise may simply change the enterprise name in order to make the brand more distinctive.
Third, the enterprise is acquired, becomes a subsidiary of the acquirer's enterprise or fully integrates into the original business of the acquirer's enterprise, and the acquirer launches its own brand.
Fourth, a new business of the enterprise has developed to a certain extent. Due to technical, organizational, financial, industrial and other reasons, it is necessary to launch a new brand to strengthen its independence, thus giving the new business subsidiary a new name.
Fifth, in order to implement strategic transformation, enterprises will replace the original name with industry or product characteristics.
Sixth, multi-brand enterprises implement brand integration, aiming at highlighting the dominant brands.
The change of enterprise name is often accompanied by major strategic adjustment, business restructuring or organizational change, which will also lead to the change of enterprise image. Therefore, the management of enterprises is generally cautious about renaming. From the actual situation, the positive significance of enterprise renaming is greater than its negative impact. It is not only beneficial to enterprises that have changed their names in order to improve their image, but also beneficial to enterprises that have reorganized their business.
legal ground
People's Republic of China (PRC) Civil Code
Article 532 After the contract comes into effect, the parties may not fail to perform their contractual obligations because of the change of name or legal representative, responsible person or contractor.