Yan Gao’s blog post: Risk of Lowering Price in High-end Markets described why luxury brand should satisfy customer’s needs instead of reducing price to gain market. And I agree that even though the cheaper version of iPhone could boost the selling, but it could also damage its reputation as a high-end brand.

Many high-end brands have a rich background and extraordinary history that make up an essential part of the brand identity. Therefore, when customers buy a high-end product, it is not only because of the product performance, but subconsciously they are also influenced by the brand’s rich heritage also. So, it is important for high-end brand to price themselves right. Setting the price too low can potentially harm the brand value. When a product is available and affordable for all customers, it tends to lose its exclusiveness.

Even though Apple tried to distinguish the cheaper iPhone from the regular one by eliminating some features and wrapped with an inexpensive plastic look, the announcement of 5c itself makes Apple’s value in customers’ minds start shaking. Therefore, for Apple to regain what they have lost, they needs to challenge themselves in terms of functionality and creativity.

Picture Source: http://www.businessinsider.com/apples-new-iphone-is-plastic-beautifully-unapologetically-plastic-2013-9

Jade Yang’s blog on “You’re not you when you’re hungry,” – Snickers really opened my eyes to a creative, innovative way to how a brand can stay on game in consumers’ fast-changing perception. Also, it reminds me of the Subway example we discussed on comm 101 class.

The market of candy bar is highly competitive. All products are almost identical. Therefore, differentiating from others by emphasizing a unique “healthy” image becomes the key of snickers’ success.

Particular in today’s market, consumers are more likely to view a brand’s image as an integral part of the product or service they are purchasing. They are not buying the actual product or service, but the status and perceived benefits associated with the brand. Therefore, to ensure customer satisfaction and loyalty, which could directly mean a larger market share, it is essential to create a brand image that differentiates itself from competitors and keep updating to meet customers’ value.

Video source: http://youtu.be/OTPJYZLD6L8

Amazon just announced plans to start delivering packages on Sundays in New York and Los Angeles.

Considering the closing than ever Black Friday and Christmas, this move is no doubt going to attract more customers to Amazon than eBay or Google. It makes shopping on Amazon easier and makes people realize a different way to shopping during the season.

Actually, Both eBay and Google have invested heavily on expanding delivery services to earn market share. Google Shopping Express delivered items from certain brand for free. The eBay Now service, which offers one-hour deliveries, has promised to expand to over 25 cities by the year of 2014.

That’s where Amazon’s move fit in. However, is the one day difference in a delivery date really going to be a deal breaker? Or is it just another way for amazon to get into public before the hot shopping season? As far as I am concerned, it is more likely to be the latter one. But no matter what, shopping in Amazon on black Friday certainly is going to set on a lot of people’s to-do lists.

picture source: http://s1.ibtimes.com/sites/www.ibtimes.com/files/styles/v2_article_large/public/2013/10/23/amazon.jpg

When CFOs Talk About Big Data, It’s Often Just Talk

The blog that I found is James Willhite’s Blog on Wall Street Journal. The post was titled  ”When CFOs talk about Big Data, it’s often just talk” and talked about how most business in the world claim that they will mastering Big Data to become more competitive in the market, but only a few is actually focusing on it.

Thanks to the development of technology, Big Data is powering business all around the world and transforming their way or running business. It helps them to understand the customers. Firms can use the information they gather to recognize the target potential customers and respond to the demand. It could generate great insights about market. However, like what we talk about on class, without efficient and accurate information management, Big Data is nothing but a wrap of raw beef. Companies can be overwhelmed by the huge volume of data. Either they don’t know how to use it or they can’t use it efficiently. Although turning data into insights is ideal, companies need to analysis them in a timely way to serve their customers better.

Without information management, all the raw data companies have about every customers’ and suppliers’ information would only create more liability.

When normal people see problems, social entrepreneurs see opportunities.

Daniel Canning, the Vice President at Western Union Financial Services, traveled to India and noticed many basic needs, such as financial services, healthcare and education, going unserved in the rural area. And Drishtee, an organization that provides essential services to rural villages via locally run franchisee kiosks inspired him. He decided to expand and advance the program.

Unlike most people who only sense desperation. Daniel recognized both a growing social need and potential business market. By working with Drishtee, he presented an opportunity to provide access to financial services to rural villages and help solve many social problems while benefiting from a developing market.

Social entrepreneurs confront with major social issues, from funding schools for low-income students, to building homes for the homeless. They see opportunities in society system that others miss, and bring out creative and game-changing solutions. They create innovations for society, rather than just profits, and create social shared value.

But at the same time, social enterprise is not charity. They are driven primarily by profit. Like Toms, they convince people that kids in Africa needs shoes and promoted their sales significantly as well as making a huge change for them.

Picture source: https://www.ashoka.org/story/meeting-rural-access-challenges-business-solutions

Twitter launched its IPO recently. To avoid suffering the dramatic fell Facebook experienced, twitter choose to set it’s the price to a range between $17 and $20 per share. Even though higher price can help the company gain more money, if it is set too high, there would be short of the demand for stocks. And the market is going to step in and press the price down, which is exactly what happened to Facebook in 2010.

Moreover, when Facebook announcing its IPO price, most investors in the market were still questioning about the ability of social media for making profit. Now, the market has already witnessed the great financial potential for this industry. Especially for twitter, investors hold great faith in its potential to provide a significant return after first trade.

For those companies seeking to increase their capital, there is no better choice than launching IPO. However, to have a successful IPO, company needs carefully evaluate its values and set its price slightly below. After, it must convince its investors of its ability to maximize values by properly addressing all the concerns investors have and proving its capability to outperform all its competitors.