Hurdling Barriers With Timing and Resources

It is not necessary for a firm to have an immensely profound idea or an exceptional amount of start up cash in order to be successful. Sao Paulo, Brazil is proving this with the companies involved in their grain production.

Brazilian grain producers face a situation in which they can become greatly profitable merely because of a fortunate situation that has been bestowed upon them. An abundance of land capital and overwhelming need for their product has allowed corn exports to the US skyrocket from $0 in 2010 to $10 million as of now. Drought has left the states with shortages in many farmed products and an increase in the price of that which was produced.

This situation has made it economically viable for the US to fund processes that directly relate to production of cotton and other farmed products in Brazil.

Although Brazil got a late start in this industry, it has surpassed any possible barriers of entry and shows no sign of curbing its economic gains any time soon. With the immense benefits that the United States receives from Brazilian farming and the vast amount of land Brazil has for expansion it would appear that this industry has been permanently infiltrated by a serious competitor.

http://www.washingtonpost.com/business/economy/in-sign-of-growing-clout-brazils-corn-helps-hold-up-us-market/2012/11/18/3f1c8e0e-2ce3-11e2-89d4-040http:

//www.worldcrunch.com/business-finance/weak-infrastructure-strikes-and-spotty-logistics-choke-brazil-039-s-agriculture-boom/brazil-soy-bean-farming-agriculture-production-silo-infrastructure-grain/c2s9350/#.UKoGYYYa2igc9330702a_story.html

 

Dell Fails to Adapt In Surging Market

Will the computer technology corporation Dell be able to restructure before they are permanently tossed by the wayside?

Dell a once strong market controlling computer software corporation has found itself in a technical environment where they only things that seem stable are change and Dell itself. The company began with sufficient points of parity but now seems to lack in innovative competition. Companies such as apple and HP are creating products that Dell is unable to keep up with.

Dell does have one very significant point of difference and that is the customization that is available for their products. While it is true that the service of a custom made computer is not available at any other high end corporation, at a certain point consumers stop caring. A well-made stock product becomes more appealing than a poorly made out dated custom product.

With stock value quickly declining it is clear that Dell has made a fundamental error by placing all of its energy into its point of difference instead of placing some on the just as vital points of parity. It is not necessary for Dell to create a product that will vastly exceed the capabilities of its competitors; it is however, prudent that they create one that can at least compare to them.

http://www.bloomberg.com/news/2012-11-15/dell-s-sales-forecast-misses-estimates-amid-pc-industry-slump.html

http://www.collierpress.com/blog/2012/8/23/apple-31x-more-valuable-than-dell.html

Do New Products Mean New Jobs?

In Logan blog titled “Corn: Food or Fuel?” the concept of opportunity cost was defined very clearly. He used the situation of corn having dual uses both as source of creating ethanol and human consumption to describe the opportunity cost. This particular situation is very interesting as corn has become a currency representing a form of capital that needs to be strategically allocated in order to yield the greatest amount of benefit.

I found this post to be particularly interesting as it raises the question, how many other products will develop an alternate use? The true interest is in what will happen when the function of this alternate use becomes more vital than it’s current one. With more and more entrepreneurs creating innovate functions for current products this question becomes increasingly significant.

The growing importance for the use of corn for ethanol could potentially pave the way for a new market in which a new specific type of entrepreneur creates new uses for old products. Although, this market would have to revolve around proprietary information and unique patents to become profitable, it is possible. This idea greatly aligns with increasing trends toward environmental sustainability giving it viable potential in the future.

http://aste1710.blogspot.ca/2012/09/from-corn-on-cob-to-corn-in-your-car_5.html

 

Exploitation, Not a Recipe For Success

I could not agree more strongly with the ideas Louie had in his blog post titled Capitalizing on Disaster.

In the post, Louie writes about the marketing that was involved with Hurricane Sandy and debates whether it is ethical to use such an event in one’s marketing campaign. To further support his idea’s on the issue, while exploiting a tragic event is an immoral marketing strategy, I don’t perceive it as relatively clever one either. While some companies may be able to pump out a little bit of extra revenue by marketing their products in relation to Hurricane Sandy, that is merely a short term stint. After the hype has passed, consumers are only left with thoughts of a company that abused a horrific situation for their own gain.

Louie then writes about Duracell, a company that was offering free power and batteries to citizens affected by the hurricane. This move made by Duracell, although seeming to be a strictly charitable act, does wonders for the image of their company. Duracell was able to use this event to both help affected citizens in need and bring a positive, philanthropic vibe to their brand. In my opinion Duracell will receive much greater benefits for their actions than a company that manipulated citizens for a short term gain.

http://www.pollackblog.com/?p=1394

 

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Lies, Leverage and Profits

Terrifying your customers into purchasing your products is not an ethical way of operating in the business world.

Al Gore, with a net worth that has sky rocketed since he left government, has taken advantage of citizens and reaped the benefits that have come from it. Gore is famous for his preaching of the upcoming global warming and the need for a more sustainable way to create energy. What is less known about him is that he has numerous investments in the environmentally friendly products that he pushes at his seminars.

Obviously, every producer has a target market, but very few have one that has been created through fear. It begs the question, is Gore’s ideal consumer one that is conscientious about the environment or rather one that is easily manipulated and impulsive. Whether global warming is relevant or not, Gore is forcing his opinion of the future onto an audience that then feels inclined to purchase products that make him profitable. If he truly believes in global warming and he was making money on the awareness of this concept alone that would be noble and just. Due to the large sums of money he has received, I have skepticism in whether those are truly his beliefs or if it is merely an unethical ploy aimed at large profits.

http://www.dailyfinance.com/2009/11/03/al-gore-the-worlds-first-carbon-billionaire/

http://www.conservativeactionalerts.com/2011/08/al-gore-loses-it-in-colorado-over-g-d-climate/

Better Place Gains Ground In Electric Car Innovation

Better Place is changing the electric vehicle industry and in my opinion, it will result in a ripple of lasting changes throughout the market. In Peter Nowak’s blog post, Better Place electric cars need better business plan he writes about the flaws of their business plan, offering no possible alternatives or suggestions.

The market for electric cars has always been plagued by the same problems, they’re inconvenient and their price is above that of what an average consumer is willing to pay. Better Place is the first company to make a significant attempt at addressing all of these issues while still remaining profitable.

The true issue the company faces is not within the mission of their business statement but rather the lack of brand loyalty they have been able to create so far. As with any product, loyalty will not be achieved without a copious amount of time and effort. However, there is no doubt that sustainability is the way of the future and Better Place is absolutely heading in the right direction. If it were obvious, the issue of mass gasoline consumption by vehicles would have been solved. The simple truth is, it’s not obvious. It’s going to take continued outside of the box thinking to create a resolution and in my opinion Better Place holds the strongest points of difference in that category.

http://www.canadianbusiness.com/blog/tech/103959–better-place-electric-cars-need-better-business-plan

http://www.evwind.es/2012/08/28/electric-vehicles-better-place-secures-e40-million-european-investment-bank-support/22528/