Alexander Cai's Blog

Over the last couple of years, the smartphone market has been widely dominated by Apple and their iPhones. Recently, however, the USA based tech giant is faced with fierce competition from Samsung and the android market.

Intentionally or not, the article confirms evidence of Barack Obama setting up bans allowing Apple’s iPhones to thrive and create a barrier to entry for Samsung smartphones to reach the market. As a result, the South Korea government has brought this issue to court.

From the point of view of a consumer, the ban against Samsung products in the USA should be lifted. This is because the issue revolves around old and outdated devices that are not selling anymore. Also, such government intervention does not reflect positively on the USA. Time is better spent elsewhere such as finding new ways to create jobs in America.

Instead of having the government back up the tech giant, they should let Apple feel the urgency to create more desirable products for customers. Perhaps Apple needs a better way to reach their customers to conduct marketing research.

Article: http://www.businessweek.com/articles/2013-10-08/did-obama-just-pick-sides-in-the-apple-samsung-patent-war

Picture: http://blog.laptopmag.com/wpress/wp-content/uploads/2012/11/Apple-vs-Samsung-lawsuit1.jpg

Consumerism in Western culture is one of the defining components of a capital market. Every time I want to buy something, I have to proceed to a checkout line. The articles theory states that the richer you are, the more likely you are to “bolt” out of line if the line gets too long.

If this article’s findings are true, this phenomenon can be very useful for small businesses because they are easily manageable. They can adjust their prices according to the length of the lineup. To maximize a business’s profits, the longer the lineup, the higher the price and the shorter the lineup, the lower the price. This system can further be enhanced by utilizing information systems to identify patterns in customer behavior so the prices can be accurately adjusted.

However, I do believe this theory is flawed. Like many other things in life, the tendency to bolt depends on many other factors such as environment and personality instead of just how wealthy a person is. Another reason to doubt the legitimacy of this theory is if it were so accurate, how come businesses have not yet utilized this technique in their advantage?

Article and Picture: http://www.businessweek.com/articles/2013-10-07/are-you-too-rich-to-wait-in-line

Over the last couple of years, Facebook has had its fair share of ups and downs. One of their successes is their installation of the data center in Sweden which has many large technology companies nervous.

Facebook’s Logo

Facebook’s redesigned data center is more cost friendly to build and run. Best of all, they did not buy parts from big suppliers. This courageous and rewarding step by the company will have profound impact on the market:

1. Companies following Facebook’s prototype will cut operation costs and become more environmentally friendly simultaneously. 
2. Big suppliers of data storage will lose billions of dollars due to the shift towards this more cost effective Asian vendors.

However, by constructing their own systems, the long term costs are not yet known. Some questions that beg an answer include:

1. How reliable are these self-build systems?
2. What happens if parts break down?

Yes, Facebook’s self-built data center is appealing in the short run. However, what are the long term costs?

News Article: http://www.sfgate.com/business/article/Facebook-revolutionizes-data-center-design-4874140.php

Being quite passionate about Electro Dance Music, the 2 deaths at Ezoo burned in my mind and led me to question:

1. What are the business implications of the cancellation of the last day of the festival?
2. Could this tragic incident be prevented?

The extensiveness of the festival and how easily trouble can occur if security is insufficient. Especially when people are drinking alcohol and taking drugs.

Logically, the the 2 deaths was an urgent and high importance matter. Although the decision to cancel the last day decreased the profits, I feel the organizers did manage to protect their reputation. By protecting their reputation, they dodge the risk of the withdrawal of sponsorship and future potential profits.

I feel the organizers could have prevented this tragedy by investing more time and money into operation costs. Extra security to escort drunk people and people who have taken illicit drugs out of the event could have countered the deaths.

Original Article: http://www.nytimes.com/2013/09/02/arts/music/electric-zoo-festival-cut-short-by-two-deaths.html?_r=0

Air Canada Logo

Airlines were hit hard the by the 2008 economic recession. Still today, many companies in this business have not yet fully recovered as supported by low trading values compared to 5 years ago. Some the reasons include the continuing economic uncertainty and competitive nature of the business that has left many investors hesitant about investing in airlines.

Amidst the concerns, the announcement of Air Canada’s success in cutting costs has left a ripple of positive feedback from investors. This competitive advantage is a possible reflection a strong management team where different departments work effectively together towards a common goal. In this case, a decrease in costs suggests the the operating division and accounting division are working effectively to allocate resources. If such teamwork continues, Air Canada will definitely be a great threat to other airlines.

In modern day developed countries, there is an emphasis on creating sustainable energy. Although it costs more initially, the investment in future generations generate better returns in the long run.

Recently, Japan has approved a handful of solar projects making it the largest solar market in the group in the coming year. I think this is a smart move especially after the nuclear meltdowns as a result of the earthquake is a common occurrence. However, it should be done with caution. Other than being costly, solar panels take up a lot of space. Perhaps the land could be better utilized. Furthermore, the repair cost on solar panel is quiet expensive as well.

I would personally double check the projected financials in the long run and set money aside in case the projects take a turn for the worse such as earthquakes damaging the panels. Also, information systems can be utilized to create statistics. By analyzing this data, improvements can be made to maximize efficiency.

Article: http://www.bloomberg.com/news/2013-10-02/japan-s-solar-projects-constrained-by-land-and-grid-bnef-says.html