This blog written by Gillian Shaw not only caught my attention because the founder of the company mentioned was a Sauder student, but the innovative new technology she created seems to have the potential of being very useful to us both now and in the future. Janice Cheam, founder of Energy Aware Technology, created technology now called the Neurio (which started out as a student project) which tracks the energy use by appliances and other electrical devices in one’s home. Neurio also allows consumers to manage things such as “from turning down the thermostat when they leave the house to reminding them that they left the oven on”. This technology gives people the power to transform an ordinary home into a smart home. Through an online funding site, Neurio has already raised more than $267,000.

Sustainable living is highly encouraged and with the arrival of technology like Neurio, consumers are able to really see the impact they can make by saving energy whenever they can. They can also see how much all this energy they use is really costing them. Studies have shown that devices like Neurio change the way people behave and also how they interact with household appliances.

Article: http://blogs.vancouversun.com/2013/11/14/vancouver-company-helps-turn-your-home-into-a-smart-home/

As my fellow classmate Jeremy Xu stated in his blog, the founder of Lululemon, Chip Wilson, recently made some comments, which may have hurt the company image. Wilson defended his products by blaming women with larger thighs for having problems with the highly priced yoga pants. Surprisingly, Wilson’s wife, Shannon, supported her husband by saying “women shouldn’t sit on hard surfaces such as concrete if they’re concerned about wearing down the fabric”. As one can predict, both past, current and future customers are not impressed.

Although I agree with my classmate that it is the natural instinct for a CEO to defend their company, Wilson made a huge mistake of offending pretty much his whole target market. I believe this action taken by Wilson will result in consequences such as a decrease in customer base. Especially people like me, someone who has never bought anything from Lululemon, will definitely not be going to Lululemon now. Business wise, Wilson severely damaged the image of his company and now must find a way to redeem both himself and the message that his company sends out to his consumers.

Article: http://www.globalpost.com/dispatch/news/business/131108/chip-wilson-lululemon-yoga-pants-some-women-bodies-blame

This blog post by Brandon Kothe caught my attention. Amazon, one of the biggest online retail sites, has launched an online grocery section in Canada, “offering 15,000 dry food items, including packaged beverages, breakfast foods, pantry supplies and snacks”. This implementation will allow Amazon to compete with competitors like Walmart who already have an online grocery shopping service in place.

Amazon prices products through a process called ‘dynamic pricing’ which adjusts prices according to large amount of research and data. This system gives them a competitive edge over other companies such as Walmart. Since Amazon is already well known for their online retail and shipping system, online grocery will not be a problem for them but rather, a success. In fact, I believe this new service will attract more customers and maybe even change the future grocery industry. Although this is a great way for Amazon to introduce something new to increase its customer base, as consumer demand increases for online grocery products, this service may become too much of a hassle to continue to operate, considering the additional costs incurred to run this service.

Article: http://www.cbc.ca/news/business/amazon-launches-online-grocery-store-in-canada-1.2303320

Competition is one of the biggest threats to all companies in the market.  They can duplicate your processes, steal away and hire your employees. Your competitive advantage might turn up to not be an advantage after all. However, one thing they cannot recreate is your corporate culture.

This article discusses the importance of corporate culture within an organization. Corporate culture refers to the set of values, behavior and relationships under which a company or organization chooses to operate. The culture of a company is able to help them create an identity and as new employees are hired, this culture is passed down to them.  Organizational culture is also important as it creates a positive environment where employees feel confortable. As discussed in class, ZAPPOS is a great example of a company that has become well known for the organizational culture they have been able to maintain. Not only do they offer money to weed out those who are not truly committed to working in their company, they greatly emphasize the time spent on the phone to ensure customers are satisfied. Employees have fully covered medical insurance and have the pleasure of working alongside their CEO who works in a cubicle with the other employees to show that he is one of them.

Article: http://www.forbes.com/sites/georgebradt/2012/02/08/corporate-culture-the-only-truly-sustainable-competitive-advantage/

What could be more ironic than some of the world’s most fit athletes promoting and endorsing junk food? Peyton Manning, LeBron James and Serena Williams are all superstar athletes who have become the faces of advertising for unhealthy foods.

Using celebrities and athletes to advertise products has been a marketing strategy used by companies for years and years. In a society where people, especially children look up to famous people, using them as the face of products is a great way for companies to attract consumer. Celebrities have the power to create a positive perception of the products and sell it not for what it’s really worth but for the label they have attached it. However, with the increase in child obesity, the public has become less receptive to advertisements of junk foods using sports figures.

Advertisements are already full of deception, making it hard for consumers to believe everything they see. With that being said, this type of marketing strategy used by food companies makes the public question the morals and values of athletes who are advertising for something they know will be of harm to consumers.  Hopefully one day they are able to see the danger they bring to future generations and choose to refuse to endorse junk food that contributes to an unhealthy lifestyle.

Article: http://www.theglobeandmail.com/life/health-and-fitness/health/study-slams-athletes-promoting-junk-food/article14698232/

Founded by Bruno Pieters, Honest By is the world’s first fashion label company that is 100% transparent. What does this mean? Honest By is able to show customers where materials and each product comes from, how much it cost, who the made the product and even how much everyone along the supply chain were paid. Pieters is able to show how easy it is to run both a sustainable and ethical business.

Pieters argues that one of the problems these days is that people buy luxury goods at high prices without really knowing where the products are coming from and assume that it is of good quality when in fact, products are being mass produced somewhere else and just being labeled to attract consumers. Pieters tells us how easy it is for a company to be totally transparent as long as consumers demand it.

Business ethics plays such a big role in the fashion industry especially when it comes to production. Many companies produce clothing under unethical working environments where workers are underpaid and forced to work under unsafe conditions. Total transparency is a sustainable advantage for Honest By and appeals to consumers who wish to stay aware of the origins of the products they are purchasing.

Article: http://www.theguardian.com/sustainable-business/sustainable-fashion-blog/bruno-pieters-honest-by-fashion-label-transparency

TOMS is a shoe company founded by Blake Mycoskie who, after visiting Argentina and seeing children walking barefoot, putting themselves in danger of getting cuts and being vulnerable to diseases and infections, was inspired to start TOMS. TOMS is famous for their motto “With every pair you purchase, TOMS will give a pair of new shoes to a child in need. One for One”. Knowing this, customers are more inclined to buy these products because they feel like they are giving back and find comfort knowing that they are providing the means of transportation for one child.

This type of marketing strategy works quite well because the brand is able to give customers an incentive to buy their products. Consumers get a feeling of satisfaction knowing that they are helping others. Because of this, they are able to disregard the price, even though the price one pays for TOMS is overpriced considering the fabric and quality of the shoe itself. TOMS bases its company on social responsibility and allows its customers to spend money with a good conscience. Buying TOMS means more than buying another pair of shoes. It means you are giving someone else a better future.

Articles: http://www.huffingtonpost.com/2013/03/20/questioning-the-toms-shoe_n_2915003.html

http://planetforward.ca/blog/toms-shoes-redefining-social-responsibility/

Can having too many different donuts be hurting Tim Hortons? According to new chief executive officer of Tim Hortons, Marc Caira, the donut and coffee are offering too many selections of donuts, which are slowing down the service. Not only that, but they need to put in place more signature and unique items to separate themselves from other competitors like McDonald’s. Caira believes that what is needed in the chain is “streamline offerings”, innovation to coffee and other products, and healthier and alternative beverages for those who do not drink coffee. By eliminating the vast selection of items they offer, Caira thinks that they will be able to provide quicker and better customer service.

Innovating and differentiating their products from their competitors can really be to their advantage. By doing this, they are establishing points of difference and this enables them to distinguish themselves from their rivals. At the same time, Tim Hortons does risk losing customers who are dissatisfied with new items or due to the decrease in the various donuts they currently offer. Although innovation can lead to success, one must also consider the risks that they face.

Article: http://www.theglobeandmail.com/report-on-business/tim-hortons-vows-faster-service-to-fend-off-rivals/article14357952/ 

In today’s world, it seems impossible to reach the youth market without the use of marketing through social media. Not only are they more vulnerable to influence from the media but they are also the fastest growing target market, ranging from the ages of 18-24. Brands are developing new marketing strategies to engage these consumers and to appeal to them with social media content that makes the users of these social networks feel inclined towards purchasing the brand. Considering studies that show 81% of people under 25 sleeping next to their smartphones, we see how much social media might affect a person in their way of everyday thinking.

Engaging with the youth market through social media is vital to every brands marketing strategy. Nowadays, kids are on social networking sites 24/7 and the easiest way for a brand to reach their target market is to advertise where the kids are the most. Over the past decade, brands and companies have been forced to adopt new strategies to follow this evolution of technology. Mobile and social marketing continues to grow in an effort to influence the youth target market through the ads that they see everyday they spend on their devices.

Article: http://www.theglobeandmail.com/report-on-business/small-business/sb-marketing/advertising/three-back-to-school-marketing-campaigns-that-got-it-right/article13898841/

After firing a Muslim employee in 2010, who refused to remove their head scarf, a U.S. federal judge in San Francisco has recently ruled that Abercrombie & Fitch did so wrongly. The retail company claims that the head scarf worn by Hani Khan “violated its policy governing the look of its employees”. The company also claims that if they were to stray away from this policy of enforcing a certain type of look, which is in fact one of their market strategies, it would negatively affect sales. According to U.S. District Judge Yvonne Gonzalez Rogers, A&F not only violated anti-discrimination laws but they also have no “credible evidence” that the presence of Hani’s head scarf would truly drop sales.

A&F has been known for their discrimination not only towards workers but also towards their customer. Recall earlier this year when CEO Mike Jeffries was exposed for making comments stating that the company’s clothes were not made to target overweight and “not so cool” customers. These actions taken by A&F show how important their image is to them and how reluctant they are to diversify both the targets of their market and to implement policies that increase diversity within their company. Clearly, the company prioritizes their own “look” before considering the religious rights of others and the anti-discrimination laws they are suppose to follow. If these are the business ethics that A&F are following, are they really a business that we want to see running in our society, one that pride ourselves in the cultural and religious diversity that is represented in our community?

Sources: http://www.thestar.com/business/2013/09/09/abercrombie_fitch_wrongly_fired_muslim_worker_over_head_scarf_judge_rules.html