Tag: COMM 101 104

Original Article: Samsung Starting to Sweat

This blog post is a further analysis regarding Georgia’s blog post on Samsung’s ruthless labor abuse in China.

Georgia identified that Powerful multinational corporations such as Samsung nowadays may not be as ethical as they might perform in front of medias. For example, she clearly pointed out that especially in China, Samsung uses underage labor and its working environment is definitely below minimal requirements. Though labors are given with a place to live but it is usually around a standard toilet size.Obviously Samsung increases its profit by cost-cutting. However, due to China’s large labor supply in the market and labors usually do not consist of high education or skills, they can only be abused by firms because they need a job to maintain their standards of living.

On the other hand, what I believe the blog post can be strengthen with is more analysis rather than describing the situation. For example, instead of talking about the unethical issues existing around the world these days such as labor abuse, she may also think about the causes of such and then provide recommendations towards such issues. In this case, readers will understand the results of labor abuse and how can we prevent it.

Nike’s LeBron Sneakers to Test $300 Limit

Summary

Overall basketball shoe prices were up 9.4% compared with a year before as of June, according to market researcher NPD Group Inc., while soccer cleats jumped 15.5% and running shoes climbed 5.5%.

Analysis

Nike is one of the leading firm in the sports market. It is located in a high competitive market against other firms such as Adidas. So people might assume that as the price of Nike shoes increase, due to the law of demand, the quantity demanded will decrease since less number of consumers are willing and able to purchase the same product. This may be true for most of the consumers. However, Nike may still maintain or sometimes even increase its profit by increasing its products’ price levels. This may be caused by its strong reputation and publicity and its solid promotion support. For example, the current NBA super-star Lebron James is working with Nike which allows Nike to use his imagine and logos on its products, in this case, sneakers. By doing so, people are more willing to purchase the products even with a higher price because the product’s “value” is now considered higher. Such products become more of a “luxury” rather than a normal good. Thus, it becomes more competitive against Adidas. Moreover, the firm has such high-tech skills that makes its products more suitable to its target markets. For example, the basketball shoes nowadays are not only well-designed, but also, lighter, stronger, and comforter than before. This is a unique selling point in which other competitors find hard to copy and achieve.

Russia’s vodka drinkers get New Year headache

Summary

Minimum prices for vodka took effect in Russia on Friday as part of President Dmitry Medvedev’s campaign to combat alcoholism at a time when Russians traditionally drink heavily during the New Year and Orthodox Christmas holidays.

The price of the cheapest half-litre vodka bottle will nearly double to a new minimum of 89 roubles ($2.95 U.S.)

Analysis

The price of vodka was raised because governments are trying to reduce the demand for it. Alcohol is usually considered as a normal good that as the price increases, the number of consumers willing and able to purchase decreases. But for countries such as Russia where Vodka is more towards a “necessity”, there’s more demand for it. As the price of Vodka increases, most people tend to continue its purchase, while feeling negative towards the government for this “unnecessary action”, which may lead to depression, resistance, etc.

Another effective way to reduce the demand for Vodka would be increasing the health awareness of possible harms from drinking alcohol. Or the government can introduce policies to limit the quantity of Vodka that consumers are allowed to purchase. These solutions are more effective because it may change the consumers’ habits of drinking with a lower chance of the public’s resistances.