Archive for October, 2011

You Pay for Texts? Really?

BlackBerry has BBM.

Android has TextPlus.

Now Apple is coming out with iMessage.

The iMessage of Apple is essentially the BBM of BlackBerry. It allows iPhone and iPad owners to text other iPhone and iPad users through some form of internet connection. Now this technology has not just suddenly appeared, it has existed for a long while through the forms of MSN Messenger, Skype, etc. but it has not actually caused a large number of customers to cancel their text messaging plans altogether. However, this release from Apple may just push people into doing just that, and in return it could have a pretty large effect on the mobile carriers.(1)Consumers may no longer be willing to pay for over-priced text messaging plans. With customers who are always looking for ways to save money, this could be a huge blow to phone carriers if they do not manage technology well.

 

Study says in Dec. 2009, 42% of U.S. uses a smartphone(2), which means that there will probably be an even larger number of smartphone, and by extension iPhones, used today. Although Apple wont be the first company to be in the messaging segment, it will definitely become a major competitor and possibly even achieve parity with BlackBerry and nullify their point of difference.

 

 

 

1) http://www.nytimes.com/2011/10/10/technology/paying-to-text-is-becoming-passe-companies-fret.html?src=me&ref=technology

2) http://mobihealthnews.com/6178/study-42-percent-of-u-s-uses-a-smartphone/

Picture taken from: http://blog.etelesolv.com/Telecom_Expense_Management_Blog/bid/67530/What-will-Apple-s-iMessage-mean-for-carriers

http://blog.mqgroup.com/index.php/2010/01/22/smartphones-continue-to-be-the-way-of-the-future/

 

 

Unethical Advertising by Tim Hortons?

“Always Fresh. Always Tim Hortons”(1)

The slogan is fairly well known around Canada. Is Canada’s favourite coffee franchise guilty of practicing unethical advertising? It certainly seems so as the word “fresh” usually does not mean “frozen, stored, and reheated”.(2) Tim Hortons appears to be taking advantage of consumers and their naivety. The slogan attracts consumers but they are being mislead into believing that they are purchasing a product that is in fact fresh. Sure a business first priority should be to generate profits for its shareholders, however a business does not necessarily need to go about it in an unethical way. There are ways to make money while still staying within the confines of regulations, laws, and rules. I feel that the unethical advertising employed by Tim Hortons not only reflects poorly on their own business but also to an extent on Canada and all that it represents as well.

 

1) http://www.timhortons.com/ca/en/

2) ibid

Picture taken from: http://www.gpspassion.com/forumsen/pop_printer_friendly.asp?TOPIC_ID=66445

Netflix Neglecting Consumer Tastes?

Netflix has gained massive popularity and has become a market leader by taking advantage of changing consumer tastes. Recently Netflix announced that it would be separating its DVD business and placing it under a new entity, Qwikster.(1) Customers will now have to make another account in addition to their original Netflix account and be billed separately in order to access the Qwikster services.(2)

It seems as though Netflix has forgotten why it has become such a success.  Customers stick with Netflix because of simplicity and convenience. This tactic will only complicates matters and may also potentially anger customers. The company seems to be neglecting what the consumers want, instead they are only focused on their own growth. Netflix has to look to similar businesses in their fields which decided to ignore consumer tastes. Companies such as Blockbuster are a prime example of what happens when consumer tastes are ignored.

 

1) http://venturebeat.com/2011/09/18/netflix-qwikster-video-games/

2) http://www.businessweek.com/news/2011-09-19/netflix-separates-dvd-business-as-qwikster-adds-video-games.html

Picture taken from: http://www.techi.com/2011/10/netflix-aborts-qwikster/

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