Since I mentioned in the previous blog about the 3D printer, I’m going to explain what this new technology is.  This new product is brought out by a Saskatchewan inventor, Rylan Grayston.  So far, the items the printer is able to print is very simple, but it could potentially print some complex items, such as electronics and guns in the future.

According to Porter’s Generic Strategies, it can use both differentiation and focus strategy.  With the differentiation strategy, it will be able to charge a high price due to its uniqueness as the product yields from a leading scientific research.  The focus strategy will enhance its attempt to achieve cost advantage and will attract high customer loyalty.  I strongly encourage this technology to partner up with auto companies, such as Ford, and other machinery companies as it will allow the manufacturing process to be more efficient and convenient.  I look forward to seeing this new printer’s success in the market.

(Photo credit: Purdue University photo/Mark Simons)

Resources:

“Sask. inventor’s 3D printer making waves on Kickstarter.” CTV News. 2 Oct. 2013. <http://saskatoon.ctvnews.ca/sask-inventor-s-3d-printer-making-waves-on-kickstarter-1.1481224>

Porter, Michael E., “Porter’s Generic Strategies.” Competitive Strategy: Techniques for Analyzing Industries and Competitors. QuickMBA. 2010. <http://www.quickmba.com/strategy/generic.shtml>

Ford is making its factories more flexible and efficient by expanding its assembly plants in emerging markets.  As we know, Ford is famous for its assembly line production as it sold only one type of car in one colour.  However, it currently declares it plans to build more plants internationally “to improve efficiency, reduce cost and respond more quickly to changing consumer tastes (Lienert).”  It shows designing the exact product the consumers want is extremely important, as we discussed in previous classes that customization enables company to sell more and charge a higher price.  Time changes, and businesses that fail to keep up with time fail to sell.  Ford is an example of a company with sharp sense to the change in market.  In fact, it will even adopt advanced techniques as 3D printing for its prototype parts.  This is probably the reason why Ford has been selling cars for 110 years since 1903, and currently selling more cars.

(Photo credit: Autoevolution)

References:

“Overview.” Fordfoundation. 2013. <http://www.fordfoundation.org/about-us/history>

Lienert, Paul. “Ford aims to make its factories more flexible, efficient.” Business News Network. 7 Oct. 2013. <http://www.bnn.ca/News/2013/10/7/Ford-aims-to-make-its-factories-more-flexible-efficient.aspx>

Magretta, J., & Dell, M. (1998). The Power of Virtual Integration: An Interview with Dell Computer’s Michael Dell. Harvard Business Review, 76(2), 72-84. <https://ares.library.ubc.ca/aresinternal/docs/19965.pdf>

“Sask. inventor’s 3D printer making waves on Kickstarter.” CTV News. 2 Oct. 2013. <http://saskatoon.ctvnews.ca/sask-inventor-s-3d-printer-making-waves-on-kickstarter-1.1481224>

We have previously discussed in our COMM 101 class about the prosper of Netflix.  Its share price increased dramatically from 66.56 one year ago to 327.26 two days ago (Yahoo, 2013).  Now, Netflix is pushing the boundary by offering the streaming service directly available through cables in our homes!  It believes that by allying with cable operators, it will boost its subscriber base.  As Netflix started to offer the service in UK and Sweden recently, it is now considering allying with a U.S. cable operator.

However, I would not suggest Netflix making this move as the barriers to entry in the U.S. market is quite high (Ries and Trout).  Comcast has launched a similar service called Streampix last year.  Other cable companies are also trying to compete directly with the service instead of partnering with Netflix.

“While Netflix has almost 29 million paying subscribers in the U.S.,” but only “about 7 million total across 40 international markets,” Netflix’s first priority could be expanding and strengthening its market internationally (Luckerson).  It could pick a region with no similar service in the past, focus on building a subscriber base and reputation, and offer the service in that region.  As brand positioning is the key to success in business, this move will help it establish its leading position (Porter).

(Photo credit: via Netflix)

References:

Yahoo! CA Finance (2013). Closing Price. Retrieved Oct. 6, 2013. <http://ca.finance.yahoo.com/echarts?s=NFLX#symbol=nflx;range=1y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;>

Ries, Al, and Trout, Jack. “Product Positioning.” Positioning: The Battle for Your Mind. QuickMBA. 2010. <http://www.quickmba.com/marketing/ries-trout/positioning/>

Luckerson, Victor. “Netflix Is Coming After Your Cable Box.” Time. 1 Oct. 2013. <http://business.time.com/2013/10/01/netflix-is-coming-after-your-cable-box/?iid=biz-main-belt>

Porter, Michael E.. “Porter’s Five Forces.” Competitive Strategy: Techniques for Analyzing Industries and Competitors. QuickMBA. 2010. <http://www.quickmba.com/strategy/porter.shtml>

BlackBerry, once the black gem in its industry, announced on September 23rd, 2013 that a group of investors is willing to buy it private for $4.7 billion.  However, it will still be difficult for BlackBerry even it quits the stock market.  Its point of difference (“Three Questions” R0209F) is its convenient text functions, which is favoured by the “text-happy youths” (“Time”).  Currently, with Apple’s iOS and Google’s Android operating systems, the industry becomes extremely competitive.  Its strong opponent, Apple, is dominating and expanding their customer segments (Osterwalder and Pigneur 20).  BlackBerry is gradually losing its consumers and its new phone, BlackBerry Z10, did not sell well in the market.  Moreover, it has $960 million worth of unsold phone inventory, which lead to its plan on firing 40% of its employees.

BlackBerry’s story shows that in each industry, especially the technology industry, companies need to be constantly ahead of their opponents in order to survive.  With previous examples of the rising and falling of Motorola and Nokia, the industry’s life cycle is getting shorter and shorter.  Despite the fact of BlackBerry’s poor performance, the boss of Fairfax Financial Holdings, Prem Watsa, is making a large bid for BlackBerry.  If Watsa end up owning BlackBerry, hopefully he could come up with an immediate and effective plan to rescue BlackBerry.

BlackBerry Z10

(Photo credit: AFP)

References:

Keller, Kevin Lane, Brian, Sternthal, and Tybout, Alice.  “Three Questions You Need To Ask About Your Brand.”  Harvard Business Review September 2002: R0209F. <http://fcis.vdu.lt/~n.klebanskaja@evf.vdu.lt/fov1-00098617/FOV1-0009D4C0/KEVIN-~1.PDF>

“Time for Plan Z.” The Economists. 23 Sept. 2013. <http://www.economist.com/blogs/schumpeter/2013/09/blackberry>

Osterwalder, Alexander, and Pigneur, Yves.  Business Model Generation.  Self Published 2009.  <https://connect.ubc.ca/webapps/portal/frameset.jsp?tab_group=courses&url=%2Fwebapps%2Fblackboard%2Fexecute%2FdisplayLearningUnit%3Fcourse_id%3D_25036_1%26content_id%3D_1598188_1%26framesetWrapped%3Dtrue>