Posts from — November 2010

When you want to try something new, in terms of dining, then OpenTable is the site to go to.

OpenTable is an online site where people post/rate their restaurant reviews and make reservations free of charge. It started out as a site but as Apple products dominate, it has now become a free application easily downloadable for the majority of Smartphones (iPhone, Blackberry, Android, etc).

The good thing about OpenTable is that for small businesses that are not worldly recognized, as long as the consumers give their restaurant a high rating, the success of the restaurant can change dramatically. On the contrary, if the small business does not receive a good rating then their reputation could be harshly impacted which would lead them through a rough path.

Thus, not only does OpenTable provide convenience and insight for consumers, it also gives a chance for restaurants to expand. OpenTable is a form of social media.

As I was browsing through the web, I came across an article that talked about how Asian consumers make purchasing decisions (Class 15). I found it very interesting seeing as I am Asian myself.

So, the article said that according to a recent Google study, Asians rely on the internet to find out more about the products they want to buy.

Results showed that eight in ten people across Singapore, Malaysia, and Thailand researched online before making a purchase at a retail store.

After reading this article, I realized that not only Asians but girls (not sure about guys) generally spend a lot of time on online stores. I know as a fact that some of my friends spend hours on sites like Forever21, American Apparel, Urban Outfitters, Nordstrom, etc. without purchasing the product online. As we can see from the article, the internet is a good opportunity for companies to get their products out there. Companies do not necessarily need to expand into online shopping (because some companies would not be able to fund it) but frequently updating their sites with their latest products would be helpful.

Sources

http://www.imediaconnection.com/content/23653.asp

First off, I really enjoyed Paul and Mahesh’s presentation about the marketing and supply chain management mainly because fashion is a topic I am interested in.

So, Paul and Mahesh were talking about Zara being a “fast follower” and is the main reason to Zara’s success; I thought of H&M and their strategy. Zara and H&M have made high-fashion everyday wear. They brought the latest catwalk trends to the masses in their own different, but similar, ways.

How have Zara and H&M created the “now or never” customer mentality?

Zara gives off the sense of exclusivity. Not only do they replicate what celebrities wear, they always have new pieces of clothing in limited supply and they remove unsold clothes after a few weeks of being out on the floor.

H&M has managed to acheive this same sensation by incorporating high-fashion designers to create limited collections. The Swedish retailer has paired up with artists like Stella McCartney, Roberto Cavalli, Jimmy Choo, etc. which creates hype among consumers. In addition, only select stores carry certain collections and so the “now or never” mentality is reinforced– similar to Zara.

Just like Mahesh said, “Zara’s fast fashion model is not easy to do, or copy“. However, Zara and H&M are two successful companies that were able to achieve it. Zara has a home decorating brand already. On the same note, H&M said their long term strategy is to diversify with IKEA or Wal-Mart. Not to forget, H&M have already incorporated themselves with Sims, the computer game. Their success in marketing and management supply chains is going to get them far in the future.

Ingvar Kampard is a successful entrepreneur. As of 2010, he is the eleventh wealthiest person in the world according to Forbes Magazine with an estimated net worth of approximately US$23 billion. He is the founder of IKEA.

Based on the reading, an entrepreneurship takes risks, is innovative, and generates big money fast– all of which I think can relate to IKEA.

IKEA’s concept is similar to a grocery store where buyers have the freedom to purchasing goods in a relaxing atmosphere. Lots of preparation (investing) had to be done beforehand such as having enough products to make it have the supermarket type feel to the store. So, fortunately, taking this risk did not turn into a failure.

IKEA’s simplistic low-priced products are what makes them different from other companies. The design and colour of their products are appealing to all age groups. Despite the not high status and not designer labeled goods, IKEA was still able to capture the attention of everyone by their innovative creations.

IKEA generates money fast due to its comfortable environment and up to date products; it naturally encourages consumers to purchase more goods.

All in all, I consider IKEA as a company that is entrepreneurial seeing as it matches the explanation in the article.

Biggest IKEA Store located in Stockholm

Sources

Forbes Magazine