10/7/12

Amazon Deal Takes Fight to Netflix

After Netflix launched an instant steaming service for its movies and TV shows at the start of 2007, it quickly developed into a company has more than 11 million consumers, but now it lose its exclusivity.

Amazon launched its own instant steaming service for its movies. Compared to Amazon racks up to more movies, Netflix’s key differentiate factor is the TV show, but some of grow  too expansive.

It is an opportunity for Amazon, based hard basis on internet selling and good reputation among consumers, and it is not hard to enter instant movie market, but it is also hard to catchup with Netflix which has already had so many loyalty consumers which may nt be changed so suddenly.

And the market focus of Amazon is more diverse which could be used as a strength or a threat to the company because diverse product may provide the company chance to attract consumers from different area, and it is like an advertisement because the new thing will be soon known by old consumers, and also it can be a threat because Netflix is more focused on single product, which makes the company considered more about better services and better quality of products.

10/7/12

Advertising world ‘transformed by social media’

The advertising industry has been transformed by social media, says David Jones, boss of global agency Havas.

The advertising industry has to be more careful because of social media, sometimes what the brand have done is not helping with buildinggood brand image but damaging the brand. For example, VISA as sponsor in Olympics.

Because of intervention from social media, advertising industry now may achieve results in good way or bad way. It is not really like old time promotion that company paid a lot and can become famous. Public may find that some advertising is annoying and have bad influence. In the Marketing mix, when marketing their products films need to create a successful mix of the right product, sold at the right price, in the right price and using the most suitable promotion. Nowadays, companies need to be more aware of “negative promotion”, and promotion itself need to be more open and public and maybe not so aggressive in the future.

In class, I saw the Pepsi advertisement that a little boy used coca cola cans to buy Pepsi, which I think might damage the brand because what we show on the advertisement should be healthy and positive.

 

 

10/7/12

The “Fight” Among Smart-phones

Formerly high-flying mobile-phone makers—HTC, Nokia, a Taiwanese firm, and Research in Motion (RIM), the Canadian maker of BlackBerry devices all faced the competition brought by latest iPhone.

Nokia hope to come back with its new smart phone Phi, and because this time Nokia bets on Microsoft’s new software.

Making mobile phone has always been fast-pace business, which has strong buyers power, high supplier power, low threat of new entrants, high threat of substitute and high rivalry. Within that business, a new os in the market would be really hard especially when android and ios continues innovation.

Nokia need to seek something new and compete by approaching to lower price by using the cost leadership strategy to defend other substitutes.

Compared to Nokia,  HTC set this year’s objective to achieve stable growth. As a late start smart-phone company,  HTC has established a strong brand image and has huge amout of consumers especially in China, but it also face problem, and if it wanted to maintain market share, it would have to depend on innovation.

In conclusion, phone companies really have to innovate and provide new services, and the company fails to follow the taste of consumers would be left behind.

10/7/12

Foxconn workers strike over iPhone 5 demands

Thousands of factory workers at Foxconn went on strike Friday to protest their working conditions on the iPhone 5’s production lines.

The reason reflected to public about why they went on strike is that employees especially quality inspectors thought that the i-phone quality standard is really hard to meet. Workers felt that standard is kind of “an impossible job”, and job increase the pressure among workers. More importantly, workers’ strike is related to unfair working hours and harsh working environment.

Officially, Foxconn refused to admit that there is strike. A year earlier, Foxconn worker suicided for unfair treatment, which bring us thinking about business ethic. Companies pursue high production and interest of workers get in the way. People thought that there is always a conflict between interest of employees and employers, but it is important to find a balance between them, and ethic is the most important thing while launching a business. Foxconn supplied a lot of electronic devise company and take advantage of cheap price, and company choose Foxconn because of price, which gives Foxconn a reason to treat its employees unfairly. There are always chains of reasons, but every companies in that line should take responsibilities.