Foreign Wireless Companies: Friend or Foe?

October 7th, 2013 § 0 comments § permalink

New, foreign wireless companies such as Mobilicity, Public Mobile, and Wind Mobile have been taking away shares from major companies like Rogers, Telus, and Bell. Although these foreign companies are new to the Canadian market, they compete against the big carriers with their voice and data plans that are nearly half the price of those of the major companies.

In response to these concerns, the co-funder of the Telecom and Technology Consulting Group, Brahm Eiley, remarked that “If their prices don’t come up, then they’re dead,” believing that low profits will eventually drive the minor carriers to raise their prices to match with those of the major companies.

Although foreign brands are taking away market shares from Rogers, Telus and Bell, these losses don’t have a significant impact on these major carriers. With their stable phone reception and loyal customers, major carriers are unlikely to lose against the minors in the long term. Not to mention, there is also the switching cost for customers that have signed contracts. However, if the minor companies are able to controvert Eiley’s remark and keep their prices low, they will have the cost leadership and will eventually become a threat to the major carriers.

Resources:

http://www.ottawacitizen.com/Lower+wireless+prices+sustainable+report+warns/8985402/story.html

http://ca.finance.yahoo.com/news/wireless-players-low-prices-not-sustainable-over-long-161544727.html;_ylt=AjQ6i5CeWZoiT26j0aE2X6TkTZtG;_ylu=X3oDMTFicHJ0M2hpBG1pdAMEcG9zAzcEc2VjA01lZGlhTW9zYWljTGlzdE1vc3RQb3B1bGFyQ0E-;_ylg=X3oDMTBhdnVpNmo3BGxhbmcDZW4tQ0E-;_ylv=3

http://jpress.journalism.ryerson.ca/straightwhiskey/2012/10/04/best-possible-cell-phone-plans-with-data/

 

 

Apple becomes More Valuable than Coca-Cola

October 7th, 2013 § 0 comments § permalink

Only a few years ago, if you asked any North American middle-schooler what she/he wanted for a birthday present, the answer might have been some game console. Today, the answer would be an iPhone, iTouch, iPad, iEtc. Although Apple was nowhere near the first company to enter the electronics market, it has developed its own incredibly strong market of electronics and has won against many other brands with its sophisticated, smart, and user-friendly products.

This year, when Apple launched the iPhone 5S and 5c, the firm was able to sell 9 million iPhones in the opening weekend alone, almost twice the last year’s sales record of 5 million. And in addition to setting this record, this year, Apple became the most valuable brand in the world, replacing Coca- Cola, which had kept the title for thirteen consecutive years.

Many question how long Apple’s monopoly will last. Will it go the fate of Blackberry, which was ranked 54th most valuable brand three years ago but is completely gone from the list this year? Apple has a strong market share but it will have to maintain its strong performance to keeps its place above competitors like Samsung and Google.

 

Resources:

http://appleinsider.com/articles/13/09/26/opening-weekend-iphone-5s-5c-sales-may-have-been-split-50-50-insider-says

http://ca.finance.yahoo.com/news/apple-passes-coca-cola-most-232758587.html;_ylt=AhuSPzN7cs1ME1U9ws9AHZHkTZtG;_ylu=X3oDMTFjaGc2N2dyBG1pdAMEcG9zAzEzBHNlYwNNZWRpYU1vc2FpY0xpc3RNb3N0UG9wdWxhckNB;_ylg=X3oDMTBhdnVpNmo3BGxhbmcDZW4tQ0E-;_ylv=3

http://ca.finance.yahoo.com/blogs/insight/apple-tops-most-valuable-brand-list-long-173336735.html

Lululemon Turns Sour

October 7th, 2013 § 1 comment § permalink

Lululemon, a Vancouver-based clothing company, has always been known for its high-quality, durable athletic apparel. However, due to recent incidents that questioned the company’s trademark Lyon fabric quality, Lululemon’s reputation has been slowly declining.

Recently, consumers filed a lawsuit against Lululemon for the sheer, see-through quality of their yoga pants. This lawsuit caused an immediate 17.5% fall in the company’s share price, approximately $1.62 billion U.S. dollars worth of market value. The consumers are justified in their disappointment; The brand retains its relatively high price range but if its clothing no longer meets that value, why would consumers choose Lululemon over other, cheaper brands?

Last year Lululemon faced reports of dyes coming off bright apparel, another example of sacrificing product quality for low manufacturing costs. Lululemon’s reputation as a reliable brand seems to be but a memory of the past, another sad reminder of the destructive effects of mass-consumerism. However, there is still hope. Lululemon was a strong first in the specialized yoga market, and maintained a good reputation. Therefore, the strong brand image that Lululemon has built over the years should be of aid in fixing its quality problems, regaining consumers’ trust, and continuing to expand its market.

Resources:

http://www.thestar.com/business/2013/10/01/us_pension_fund_to_lead_classaction_suit_against_lululemon.html

http://www.theglobeandmail.com/report-on-business/lululemon-lawsuit-over-too-sheer-pants-gets-lead-plaintiff/article14642784/

http://www.fashionweekdaily.com/chic-report/article/lululemon-fires-sheree-waterson-after-see-through-pants-fiasco

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