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Wrzlprmft
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What exactly makes this logo a design failure?

In a featured Stack Overflow Meta question, there was a logo of a company, which looks like this:

Company logo

(The logo might be copyrighted. It is posted here for discussion purposes only.)

I failed to recognize the company name, which is

dahua (Zhejiang Dahua Technology Co., Ltd.)

One of the highly upvoted comments was

Follow-up question: Is it still self-promotion if most users cannot decipher the company name? ;)

Why exactly is it so hard to decipher the company name here? Which design principles were missed? Which design principles work towards a different interpretation, specifically "alhua"?

Thomas Weller
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