Monthly Archives: September 2014

Bendgate: Repositioning the Competition

_77828911_bendytweeysApple has been under fire from not only the general public, but companies within and even outside of the tech market recently. What is now a trend on twitter, “#bendgate,” refers to the problems that consumers are having with one of Apple’s latest products, the iPhone 6 Plus. According to reports, if the phone is put under pressure, whether that be through sitting for long periods of time with the phone in a skinny jeans pocket, or simply applying too much torsion on the phone, it can develop an unsightly and permanent bend near the volume control buttons.

Companies such as Samsung, and LG have partaken in the opportunity to criticize Apple for the defect. Samsung posted a picture on twitter of their phone the Note Edge with the caption, “Curved. Not bent.” LG took a similar approach, promoting their device, the LG Flex, with the caption, “Our phone doesn’t bend, it flexes… on purpose. #bendgate.”

Companies like Samsung and LG are taking advantage of what Ries and Trout call, “Repositioning the Competition,” by promoting by criticizing Apple’s new release in an attempt to gain new customers. The mobile device market is almost completely fixed, and lately, there is not a lot of opportunity for unique positions that can be held. In order for a company to gain market share from Apple, this is certainly an effective approach.

Although the iPhone 6 Plus has been getting a lot of criticism for being cheaply made, Apple has released a statement assuring the public that there has only been nine customer complaints of having a bent iPhone. In addition, Apple stated that they use “high-quality materials,” and a bent phone is “extremely rare.”

Click here to read more in this BBC article: “Apple says bent iPhones are ‘rare'”

Image taken from BBC article above.

Business Ethics – CVS’s Boycott on Cigarettes

CVS’s plan to remove cigarettes from stores is controversial, which is normal for almost every ethical decision made in the business community. While it seems like the right ethical decision to make. Even though being a pharmacy that provides health services for customers, while also selling customers goods that are detrimental to their health seems unethical, it appears to be good business. Clearly in CVS’s situation, not every stakeholder would be satisfied in the decision to ban the sale of tobacco products in their stores, however, it is ethical for them to put the well-being of their customers first. Especially since CVS is primarily a pharmacy.

Freedman’s Stakeholder Theory and his idea that “the social responsibility of business is to increase profits,” both apply to CVS’s decision as well. While some people that are stakeholders in the business may not be pleased with the decision (e.g. customers that smoke), the majority would be. Since CVS is attempting to follow a strict business model that shows consumers that the company has it’s customers well being in mind, the majority of the company’s stakeholders will be satisfied. The opportunity for new customers using CVS as their pharmacy arises, which in turn, brings them more business, and therefore more revenue, keeping investors satisfied.