Why Creative Memories needs to start a new company

The answer as to why Creative Memories needs to transform itself into something different is relatively simple: mathematics and the direct sales business model, which relies largely on growth of the sales force to drive sales. The current company has declined about 20% per year, every year for the past decade. On the other hand, a successful direct sales company can grow at 50% per year or more, if the sales force also grows. So, even if Creative Memories loses 80% of its current sales force when it becomes a new company, it will still be better off. For simplicity I have assumed that Creative Memories has a sales force of  10,000, although the exact number is unknown since Creative Memories has stopped deactivating members of the sales force for failing to meet sales requirements.

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The real question isn’t why Creative Memories needs to change. Instead, it is “Will the bankruptcy court allow Creative Memories to start a new company, and if it does will that company succeed?”

The answer to these questions is far from clear. The bankruptcy court may decide Creative Memories is worth more dead than alive. Creditors may lose confidence in the current management. The new business model may be fundamentally flawed. Any number of problems may arise.

Me? I will be watching from the sidelines, and I will be interested to see what happens.

About Mark Mizen

I have over twenty years professional experience in all aspects of photography and digital imaging. I am Chair of the ISO WG5 TG2 committee responsible for physical properties and durability of imaging material and am currently with HID Global working on systems for security printing for IDs, licenses, and credit cards. Previously, I was Director of Digital Development at Creative Memories from 2009 to 2012 and was responsible for the Creative Memories digital products and services. I also established and directed the Creative Memories Technology Center, which evaluated new products prior to product introduction, assisted with production difficulties, and provided technical information to support product sales.
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2 Responses to Why Creative Memories needs to start a new company

  1. Midge Gravelese says:

    Thank you Dr. Mark.

  2. Terri Neby says:

    Thanks Dr Mark…

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