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I can closely relate to this topic as I have chosen Wind Mobile because they offer unlimited everything at half the cost of Fido. However, a “point of parity” that Fido has is that their reception strength is strong and a “point of differentiation” is free Canada-wide texting.

In response to the co-funder of the Telecom and Technology Consulting Group, Brahm Eiley, who remarked that “If their prices don’t come up, then they’re dead,” I have to disagree. Foreign wireless companies, such as Wind, have increased their original unlimited data plan from $30 to $40. A possible explanation for such low prices is to get phone users to convert. This decision may be a part of a strategy implemented by the “operations” department of a company. I, along with many of my classmates who have switched to Wind, believe that the small inconvenience of not being able to call on the skytrain and in concrete surrounded areas, is an opportunity cost that we don’t mind to endure. I can foresee that once users have converted, increasing plan prices will be the next step in gaining even more profit and market share.

Since a normal phone contract by any major phone company is usually 3 years, foreign wireless companies may have a greater impact on the market in the long term, but as of now, I have to agree that leading phone companies still have significantly greater “supplier power”and companies like Wind Mobile are not a major “threat of substitute.”

Response to Annabelle Chen’s Blog @ https://blogs.ubc.ca/annabellechen/

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Blackberry is suing Kik Interactive, an instant-messaging application which was started by Ted Livingston-a former co-0p student of Blackberry. The reason for this lawsuit is because Mr.Livingston’s Kik app soon surpassed Blackberry’s BBM.

In my opinion, I believe that Blackberry is suing Kik Interactive because they are jealous of their success and are greatly regretting their decision. However, I understand that Blackberry wanted to keep BBM to only blackberry phones because of two reasons. Reason number one is because users who want to use BBM would be forced to buy from Blackberry. Reason number two is because BBM is one of Blackberry’s major “point of differentiation.” Blackberry loses greatly to other companies, such as Samsung and Apple, when it comes to similar points of parity such as; apps, system software and system specifications. In terms of Porter’s Five force analysis, we can see that Blackberry is exercising their “supplier power” by suing Kik and is creating a greater “barrier of entry” for Kik Interactive. Kik Interactive is a major “threat of substitute” because consumers no longer need to buy from Blackberry to have the BBM experience, they can just buy any Android or Apple product.

After this discussion, I feel that Blackberry has three options. One to win the lawsuit with Kik Interactive(unlikely), or, two, to establish a new point of differentiation of their blackberry products(time consuming), and, three, to launch their BBM on all platforms and juice as much out of the market for instant messaging as possible(most likely).

source: http://www.theglobeandmail.com/technology/mobile/blackberry-kik-interactive-settle-lawsuit-over-instant-messaging-app/article14738696/

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Nowadays, choosing what car to buy may be difficult. Some of us want to save on gas so we go towards fuel efficient cars such as electric vehicles. However, fuel efficiency comes as a cost of performance. Speed fanatics want a bit more horsepower so when they put the pedal to the medal, they get that extra bit of adrenaline pumping through their veins. So, up comes the best of both worlds, a two engine car, also known as a hybrid.

In an article from the New York Times, the new 2013 Ford C-Max Hybrid has been receiving complaints from drivers on how the car isn’t meeting its advertised fuel efficiency. The C-Max is expected to achieve 43 miles per gallon in the city and 47 miles per gallon on the highway. To recover a loss in reputation, Ford has sent out $550 dollar cheques to C-Max Hybrid owners. I believe that this payment to owners is a form of crisis management, as the last thing Ford wants is car owners to turn to substitute products from other companies. From this article, I can see potential controversy between the Marketing and Accounting side of Ford. The cheque would help restore Ford’s image which is good for marketing, but is a costly safety procedure from the perspective of Accounting.

In my opinion, I think that it is great that businesses are offering cars that satisfy each unique driver. With the continuously rising gas prices, I believe that Hybrids and even electric vehicles will become more and more popular as time goes by.

source/article: http://www.nytimes.com/2013/10/01/business/ford-c-max-hybrid-owners-get-rebate-for-disappointing-mileage.html?ref=business&_r=0