I came across Mariska’s post about Google Docs and its increasing popularity and possible threat towards Microsoft Office. Mariska points out that although Google Docs is becoming more popular, Microsoft is already an established name for corporations and its programs have a competitive edge. I agree with her view that Microsoft doesn’t need to worry too much about the upcoming Google Docs. This is because Microsoft has a higher buyer power, meaning many corporations choose Microsoft’s programs over other companies’. Microsoft also has a high supplier power as the company can exert influence on the industry and it also costs significantly more for corporations to switch away from Microsoft programs.

Microsoft was also smart to initiate Microsoft Office 365, where cloud technology comes into play so people can access their files on the Internet. This is like a cost leadership strategy, because it was a simple add-on but for all users. This was a simple yet effective way for the company to compete against what was mainly the most different aspect about Google Docs. Along with a popular interface; the addition of the option to save files online puts the company right back on top over Google Docs again.

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Works Cited:

“Porter’s Generic Strategies.” QuickMBA.com. N.p., n.d. Web. 17 Nov. 2013.

Google vs Microsoft. Digital image. Http://www.navitec.co.uk/perch/resources/googlevsmicrosoft.jpg. N.p., n.d. Web. 17 Nov. 2013.

Karan Girotra and Serguei Netessine’s blog post reveals that Amazon.com recently decided to start a new strategy: to offer same day delivery to most US addresses. Thus, the number of warehouses in the US is increasing. I think that it is a great example on how a company can achieve a lot more if they refine the business models to suit the present market. Although it took more money to build more warehouses, Amazon.com probably had more returns in revenue streams. The Fulfillment program by Amazon allowed independent sellers (smaller stores) to use Amazon’s warehouse networks to fill orders. Due to the new business model, the company became the wholesaler of goods sold by all these smaller stores.

Similarly, Nike has also changed its business model before. The company revolves around the idea of sustainability. The business model was once based on the premise of cheap access to an abundance of resources. However, as raw materials became scarcer, Nike’s business model had to change.  Nike changed its business model because the market forced them to. The company not only focused on improving products and services, but also emphasized importance on keeping the business modern. I think that companies that improve business models are smart as businesses always needs to keep up with modern trends and updated technology in order to be competitive in the market.

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Works Cited:

“HBR Blog Network.” Harvard Business Review. N.p., 15 Nov. 2013. Web. 17 Nov. 2013.

“Nike: Business Survival Means Smart, Sustainable Decisions.” SmartPlanet. N.p., 6 Nov. 2012. Web. 17 Nov. 2013.

Amazon.com. Digital image. N.p., n.d. Web. 16 Nov. 2013.

After reading Jonny Young’s views on Abercrombie’s decisions recently, I am leaning towards the fact that A&F’s decisions have more negative effects than positive ones. Along with the CEO Mike Jeffries’ disrespectful comments, the company also burns damaged and unsold clothes rather than donating them.

Although A&F increases its focus on one particular market, its overall image has suffered tremendously. I actually think that A&F in a way deals with a problem regarding business ethics; the comments the CEO released are socially unethical. Before the bad publicity, A&F was doing well expanding into other countries outside the USA and many different sized people like its style and bought the clothing. The sudden change in brand values may have negative effects. Although A&F may face increase in revenue from its focused market area, the company is losing out on significantly more sales from other consumers. People were willing to pay relatively high prices in other areas of the world for a middle-priced clothing store in the States. Thus, I think that A&F should go back to a differentiation strategy that targets a wider audience as it was proven effective in different markets around the world.

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Works Cited:

“Abercrombie and Fitch CEO Backlash Sees Greg Karber Hand Out Clothes To The Homeless.” The Huffington Post UK. N.p., 15 May 2013. Web. 16 Nov. 2013.

Mark Jeffries. Digital image. N.p., n.d. Web. 16 Nov. 2013.

Puma ranks third after Nike and Adidas in the sports apparel industry, but CEO Bjoern Gulden plans to shift the brand’s focus. He wants to reposition the brand from being a sports lifestyle company back to being a sports company.  Although PUMA has been given lucrative sponsorship deals with athletes such as Usain Bolt, it has failed to have much success with brand recognition. Also, projected net profits for 2013 will fall below that of 2012’s.

In a way, Puma is shifting its industry. Using Porter’s 5 forces, it’s shown that Nike and Adidas dominate the sports lifestyle industry; they have a lot of supplier power and have strong market shares. Puma is hoping to thrive in the sports company by focusing on creating products primarily for sport purposes. Gulden said that spending would now concentrate on technical products. I think that Gulden is making the correct move as Nike and Adidas are too strong in the market. By digging back into the roots of sports, Puma can really attract consumers who only want performance products and are indifferent towards the fashion aspects of products. Overall, if Puma can bring back the classic sports-only brand image, they could succeed.

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Works Cited:

Bryan, Victoria. “New Puma CEO Seeks to Return Company to Sporting Roots.” Reuters. Thomson Reuters, 08 Nov. 2013. Web. 13 Nov. 2013.

“Puma Gets a Boost from Bolt.” The Fresh Peel RSS. N.p., 23 Aug. 2008. Web. 13 Nov. 2013.

The New CEO of Tim Horton’s, Marc Caira, hopes to be more competitive in the market by improving customer service. He wants to cut down the amount of choices on the menu, which contains 60 rotating flavors of donuts, in order to increase speed and efficiency in stores.

This method is similar to Porter’s cost leadership strategy. Caira aims to move away from product differentiation but to focus more on efficiency in distributing products. He wants to make sure consumers are not waiting in line and get good quality service fast. I think that having efficiency at a restaurant is one of the most appealing attributes. However, I don’t think Caira should decrease menu options because people love knowing that they have the power to choose between different options. I think that Caira should focus more on staff training and development to emphasize efficiency in its brand. If the staff could be trained to work in an efficient manner, while the Tim Horton’s menu still includes all of its many choices of food, it will attract even more consumers to eat there. Although not easy, Tim Horton’s should focus on both keeping its expansive menu and increasing store efficiency.

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Works Cited:

“New Tim Hortons CEO Wants to Simplify Menu, Speed up Service.” CBCnews. CBC/Radio Canada, 17 Sept. 2013. Web. 12 Nov. 2013.

Tom Hortons Donut Coffee. Digital image. N.p., n.d. Web. 12 Nov. 2013.

Although Manchester United is not quite living up to its expectations in the league table, it is doing quite well financially. The club has recorded record revenues of £363 million in the past year and made a net profit of £146 million. Merchandising and sponsorships boosted commercial revenues by 30%.

Furthermore, is has been a year since the club’s initial public offering and being listed on the New York Stock Exchange. It hopes to rise up to £248 million through a shares sale.

As a United supporter, the news is great since the club has been in a huge debt since the Glazer’s took over in 2005. I think that United should focus on its league and competition performance as that could translate into financial success. In a way this is similar to product positioning from a firm. Getting first in the league would have a large impact on fans all around the world; the number one club is always remembered. Besides earning revenue from competition prize money, fans would want to support and represent United, thus merchandise sales would increase and also more shares could be sold. The club’s on-pitch success would directly lead to off-pitch financial success.

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Works Cited:

“Manchester United reports record revenues.” BBC News. BBC, 18 Sept. 2013. Web. 11 Nov. 2013. <http://www.bbc.co.uk/news/business-24143384>.

“Insider Media Limited.” United seek to raise $400m through shares sale. N.p., 19 Sept. 2013. Web. 11 Nov. 2013. <http://www.insidermedia.com/insider/north-west/98845->.

Manchester United Shares. Digital image. N.p., n.d. Web. 11 Nov. 2013.

McDonalds’s is deciding to launch a new version of its Dollar Menu, which includes items that priced up to $5. In order to compete with other fast-food chains’ menus, chief marketing officer Neil Golden said that the menu provided a “broader range of profitability” for its restaurants. The new “Dollar Menu & More” menu has been tested in many states already.

Although prices of products will cost more, especially when compared to Wendy’s new “Right Price Right Size” menu, McDonald’s new menu includes more variety, including new chicken items and burgers with extra toppings. Along with that, the huge brand loyalty McDonald’s maintains could allow the new menu scheme to work. These factors could actually lead to an increase in sales. Costs for ingredients have climbed rapidly in recent years, and it’s sensible of McDonald’s to keep the classic Dollar Menu, which is extremely appealing to low-income customers such as kids, but also implement a new higher-priced menu with many more options for consumers. This allows the company to effectively target a bigger market as some people may desire bigger portions or want to share with friends and also set reasonable prices to balance with its ingredients costs.

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Works Cited:

“McDonald’s Exploring Changes to Dollar Menu.” Crain’s Chicago Business. Crain Communications, Inc., 4 Sept. 2013. Web. 07 Oct. 2013. <http://www.chicagobusiness.com/article/20130904/NEWS0702/130909949/mcdonalds-exploring-changes-to-dollar-menu>.

Dollar Menu. Digital image. N.p., 2008. Web. 7 Oct. 2013. <http://2.bp.blogspot.com/-o_Mhk56TfaE/UXNemd6AeMI/AAAAAAAA7KI/ajVHAmsLYZI/s1600/mcdonalds-dollar.jpg>.

Samsung Electronics, the world’s biggest mobile phone and TV maker, forecasts a 25% jump in operating profit form a year ago. Its Galaxy range of smartphones has contributed to the expected $9.4 billion profits. Although some expect its growth rate to be threatened by the emergence of other cheaper mobile phone makers, it has not happened (at least not yet.)

The success of Samsung is due to the fact that they target both high and low income segments of the market, producing the high-quality Galaxy phones and low-cost smartphones targeted at developing countries such as India and China. I think that this is a huge advantage they have over leading competitors, Apple, as the American company only produces the iPhone. Having lived in Beijing all my life, I have seen the low-cost smartphones being used by people in the city and it is clear that Samsung has been successful at targeting those consumers. If Samsung keeps producing quality phones at a low price, it can capture more middle-income segments of the market and dominate phone markets in many developing countries. However, they would need to dig deeper in innovation to compete with the new cheaper iPhone 5C Apple has released.

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Works Cited:

“Samsung Forecasts Record Quarterly Profit.” BBC News. BBC, 10 Apr. 2013. Web. 07 Oct. 2013. <http://www.bbc.co.uk/news/business-24393850>.

LG competes with major electronic brands such as Samsung in creating developed electronic products. However, LG’s latest campaign is about “making life easier and more enjoyable,” as Andy Mackay, LG UK commercial director stated. Many brands that produce consumer electronics put so much focus into technological aspect, which at times confuse customers. LG has decided to introduce a new “It’s all possible” brand positioning that allows them to connect with consumers on a more personal level on how its products benefit daily lives of people.

LG has repositioned its company and market, as they are more directed to people who may not be extremely familiar with all the technological aspects of products. However, I think that LG will also lose out on many customers. This is because the shift in focus of the brand may leave some loyal customers, who are interested in technology, to lose interest. If LG does not focus on those aspects in its advertising, and instead focuses on adding “warmth” to its brand, those loyal customers may search for other brands to replace their desires. Overall, I feel that the number of customers LG may possibly lose could be more than the number they gain.

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Works Cited:

O’Reilly, Lara. “LG rolls out new positioning to add ‘warmth’ to the brand.”Marketing Week. Centaur Communications Ltd, 3 Aug. 2013. Web. 7 Oct. 2013. <http://www.marketingweek.co.uk/news/lg-rolls-out-new-positioning-to-add-warmth-to-the-brand/4007542.article&gt;.

LG. Digital image. LGBlog.co.uk. LG, 30 Oct. 2008. Web. 6 Oct. 2013. <http://www.lgblog.co.uk/2008/10/lifes-still-good/&gt;.