10/5/13

A New “Kodak Moment”

The article “E-cigarettes: Kodak Moment” describes the potential of e-cigarettes in the tobacco industry. Although governments all around the world are pending to place regulations and restrictions, “the staid tobacco industry is beginning to wonder if it is reaching a “Kodak moment”, its version of the point at which the world’s leading maker of camera film realised that consumers had gone digital, and it was too late to chase them” (para. 8).

On surface value, it is obvious that e-cigarettes provide a more health-conscious alternative to cancer-inducing cigarettes. However, we must think about the effect on the industry as a whole; what does this mean for those who are already in the tobacco business? Depending on the barriers, businesses may be able to leave or realign their business strategies towards e-cigarette development and sales. Predictions state that e-cigarettes could completely take over within the next five years. Those who are quick to react will be able to develop standardized, well-developed, and highly-tested products. In a sense, it is like a smartphone battle.

Needless to say, there is a huge global market for e-cigarettes; hopefully, the government will let the invisible hand act and we will see just how the new technology will revolutionize the industry.

References

“E-cigarettes: Kodak Moment.” The Economist n.d.: n. pag. The Economist. The Economist Newspaper Limited, 28 Sept. 2013. Web.

http://www.economist.com/news/business/21586867-regulators-wrestle-e-smokes-tobacco-industry-changing-fast-kodak-moment

10/1/13

Farewell Blackberry Patents

In Barrie McKenna’s article, we are forced to acknowledge the bitter fact that Canada’s biggest technology firm, BlackBerry Ltd., is bound to be bought by foreigners. Similar to what we discussed in class, BB’s “prized intellectual property risks leaving the country” (para. 1). From a nation-wide perspective, BB has contributed significantly to Canada in terms of generating patents and tax credits. Needless to say, BB’s activities result in the flow of millions to billions of dollars.

From learning about the business canvas model, it is apparent BB has failed to deliver its value propositions to its desired customer segments effectively enough to generate profitable revenue streams. Blackberry has failed to notably innovate.

While the government can try its best to save the famous Canadian company, buyers are readying for the acquisition process. Conversely, the Canadian government has simply not done enough to encourage research and development firms in the country. Our country pays out “$4.5-billion more a year in licensing fees to foreigners than it collects from others” (para. 13). Blackberry easily broke barriers-to-entry only to fall back out.

References

McKenna, Barrie. “Don’t Expect BlackBerry’s Patents to Stay in Canada Add to …” The Globe and Mail. The Globe and Mail Inc., 29 Sept. 2013. Web. 07 Oct. 2013.

http://www.theglobeandmail.com/report-on-business/dont-expect-blackberrys-patents-to-stay-in-canada/article14594494/

09/18/13

GTA V: A Revenue-generating Parody

A great buzz has stirred on online news sources as the newest installment of the famous and best-selling franchise, “Grand Theft Auto,” was just released this week. Why is there so much publicity over this video game? Simply because it has generated over $800 million in a single day.

Even with a budget of $266 million, Take-Two Interactive Software Inc. (NASDAQ:TTWO) has broken quite the record. In comparison to movie blockbusters like “Avatar,” which took “17-days to cross the billion-dollar mark”, and other best-selling video games like “Call of Duty: Black Ops 2,” which “earned $1 billion in 15 days”, GTA V is an uncontested revenue-generator and achievement for the company. TTWO has climbed 3%; however, the sales projection has yet to include the figures from the upcoming launches in other countries.

While the immersive, realistic and open-world environment is great for those excited gamers, what does the infamous explicit content mean for society? Although there’s always controversy about GTA V, sales figures will increase; for one thing, the game isn’t the crime-perpetrating catalyst some people may think it is. Rather, it is a “mirror lash[ing] out at… today’s popular culture… including… social networking – a less-than-subtle dig at Facebook comes in the shape of “Lifeinvader” . Lifeinvader’s strapline… is: “Where your personal information becomes a marketing profile (that we can sell).”

The studio at TTWO is well aware of the implications of its game; it is also intentionally trying to demonstrate that its brainchild is not a culture-influencing threat and that perhaps we should re-evaluate some of the other parts of popular culture in our lives.

References

http://www.theglobeandmail.com/technology/gaming/gta-v-rocks-sales-records-with-800-million-first-day/article14399767/

http://www.businessinsider.com/gta-v-earns-800-million-in-one-day-2013-9

http://www.bbc.co.uk/news/technology-24066068

http://en.wikipedia.org/wiki/Take-Two_Interactive

09/11/13

Facebook Toying with Our Privacy… Again

Vindu Goel’s and Edward Wyatt’s article “Facebook Privacy Change Is Subject of F.T.C. Inquiry” describes the Federal Trade Commission’s new inquiry about whether or not Facebook’s new policies comply with an agreement made with regulators in 2011.

This 2011 agreement establishes that Facebook requires the “explicit consent of its users before exposing their private information to new audiences” (para. 2). Conversely, Facebook’s new policies force users to grant the company “wide permission to use their personal information in advertising” (para. 3) as part of the service agreement.

Repeatedly, our privacy is disrespected by the social media giant. From a business perspective, the new policies seem like a profitable move for the company to elevate its advertising revenue; however, it may prove to be an unethical imposition on its millions of daily users. Even one of the world’s greatest companies, Apple Inc., says that it will not infringe people’s privacy through its new fingerprint technology.

For stakeholders, F.T.C.’s inquiry into Facebook may translate into yet another warning about Facebook’s mentality and views on social responsibility. Every business has its right to flourish but there should be no repercussions for its community. Some may simply suggest that Facebook is in a desperate situation to meet the advertising revenue expectations of investors; others are more likely to state that in this age of ever-growing daily-use technology, our privacy becomes much more valuable than the performance of some company.

http://www.nytimes.com/2013/09/12/technology/personaltech/ftc-looking-into-facebook-privacy-policy.html?ref=business