With the anticipation of Twitter’s upcoming IPO, the corporation has implemented image/video previews into users “timelines” with the hopes that the multi-media integration will compete with competitor websites such as Facebook. Twitter hopes that since Facebook has been so successful having an integration of pictures/videos on their newsfeed that by implementing this feature into the Twitter timeline, it will increase Twitters consumer growth rate. This is vital for Twitter especially with the present concern on Wall Street that Twitter’s recently slowed growth rate will have negative effects on the success of its upcomming IPO. This is a clever move on Twitter’s behalf as it could increase the number of people using Twitter; and more importantly, the modification may be more appealing to advertisers who can now market their product more easily using Twitter since the user will be directly exposed to the ad rather than having to open a link. In addition to displaying picture previews the renovated timeline will also display previews of videos which will play automatically; this allows for more versatile advertising. It is crucial for a company to set an appropriate price on the primary market shares considering the fact that the company will obtain all the profits from these sales and thereby increase capital. If Twitter’s price is too high for the market demand they will not maximize profit; therefore, it is important to generate a great demand and price your stock accordingly. Considering the uncertain forecast of Twitter’s IPO due to slowed growth and lack of information, this strategy should attract new users and advertisers thereby cohesively attracting new investors, and result in a successful IPO.

We are all familiar with the long lines outside of Apple each time a new product is released in store, but have you ever wondered why they never seem to have enough product to meet the outstanding demand?

Since Steve Jobs’ passed away, Tim Cook (former supply chain director) has taken Jobs’ place as CEO. Prior to Jobs death Tim Cook was referred to as the “supply chain guru” as he ensured efficiency along the production line while Steve Jobs’ focused on Apple’s innovation. Today, while Cook is prioritizing his role of CEO, the supply chain is suffering without his expertise; supply is not meeting consumer demand, especially with the iPad Mini’s. Why? Because Samsung is no longer supplying Apple with the iPad mini display Apple’s alternative supplier is AUO. AUO is a new supplier; therefore, they are “not able get the volumes that Apple needs, so essentially, there’s just one supplier.” Apple’s stocks have taken a plunge in response to their product shortage and inability to innovate. Although having a higher inventory turnover rate is productive and cost efficient, Apple’s inventory is too low which is costing them because their supply does not meet demand which then results in lost revenue.

http://www.forbes.com/sites/petercohan/2012/10/26/apple-cant-innovate-or-manage-supply-chain/

Recently Sharp has been struggling with its sales and recorded a significant net loss of $5.3 billion in the fiscal year ended in March of this year.  As a result of Sharp’s lack of success the company has decided to innovate diversify their product line. Sharp plans to experiment with new technology to grow strawberries in Dubai. The technology would kill germs, bacteria and mold on the fruit by growing the fruit under careful conditions and Sharps new technology. Sharp’s target markets would be growers in the Middle Eat because their strawberries are expensive and quick to spoil. While Sharp’s net-income has been in significant decline due to the decrease in demand for their smartphones/televisions they have seen an increase in demand for their solar sell products; therefore, they have decided to pursue agricultural technology. By readjusting their main focus, Sharp needs to take into account the relevant costs of adding new products at the cost of producing less televisions/cellphones. They will have to allocate capital and resources to design, produce, market, and sell the product. As well, Sharp needs to take into account the fixed and variable costs associated with this production process. If they are not successful in the process they will not break-even and their net-loss will increase in the next fiscal year. However, we have seen that innovating is a good decision for a declining business; after all, it was Blockbusters lack of innovation that forced them into bankruptcy. If Sharp weighs the costs in contrast to the forecasted profit margins of their new innovation, they have the potential to redeem their revenue streams.

http://www.businessweek.com/articles/2013-09-27/forget-tvs-dot-sharp-sees-a-future-in-strawberry-farming

Mercedes, the industry leader in luxury cars, has introduced a new discounted sedan targeted towards “less-affluent buyers.” By appealing to consumers other than their primary “blue chip” buyers Mercedes hopes to attract younger buyers and keep them as long-term customers as they “climb the corporate ladder”; once the younger buyers have a larger income they will be able to afford Mercedes’s higher end vehicles. The decision to launch this product is a bold move on Mercedes’s behalf because there is the risk of losing “blue-chip” buyers for their high-end cars as they downshift to the more affordable market. Mercedes’s is modifying their business model by enhancing their customer relationships and revaluating their customer segments. Mercedes’s is expanding their target market by attracting consumers who would like to buy a Mercedes’s but cannot afford one while still maintaining their relationship with current customers who buy their higher-end models. Mercedes’s has a unique strategy by attracting new customers who are not necessarily the most important segment right now, but will be in the future as their income increases. As a result of modifying their customer relationships and segments by introducing a new product, Mercedes’s also have to revise their production operations. The company must evaluate the costs of supplies/equipment, production, as well as marketing and distributing it to the customers. Mercedes’s has proved to be successful by changing their business model and as a result car sales were up 6.7 percent in September 2013.

http://www.businessweek.com/articles/2013-10-02/mercedes-cla-sedan-with-budget-price-outsells-high-end-models-in-u-dot-s-dot-debut#r=com-ls