Refresh the Brand and Ensure the Future of the Company

Sometimes, in order to refresh the brand and ensure the future of the company, they will choose to change the company’s name. The rename phenomenon can revealed the characteristics of the times and it will give people a brand new feeling.

For MAS, they need to consider that eliminate the negative impact of two air crashes caused and stop the share prices fell quickly. After the 2 tragedies, when people hear “MAS” they will fell insecurity. And there are fewer customers willing to take MAS flights because they have too many worries. So if MAS can change the name it will alleviate this situation. Once they renamed their company, people will think they carried out the corporate restructuring and they have solved the security risks problem, then they are willing to buy the ticket of MAS again.

There are some real examples which can prove that renamed the companies will help them reborn and boost the share price of the company. Through the survey showed that in China, there are 105 listed companies choose to rename their company in 1999. And there are 14 companies got the amount of increase more than 100 percent which Homologation’s share price turns over eight times. There are 12 companies have more than 50% of the gains. In the mid 2000, there are 53 companies renamed and five of them achieved that share price doubled. Taishan Petroleum rose by 248 percent in the first place. Then there are 14 company's share price rose more than 50%.

So compare to the share price which before renamed, they got a lot of gains. This shows that the company changed its name should be beneficial to the company's long-term development.