Internally, employee disengagement and lack of support can impede the successful implementation of the new brand. In the marketplace, dissatisfied customers may turn to competitors, leading to a decline in market share. In severe cases, a company may need to reverse the rebranding process, incurring additional costs and exacerbating damage to its image and credibility.

To mitigate these risks, careful planning, effective communication, and a gradual implementation approach are essential for a successful rebranding effort.