BlackBerry’s grip on U.S. government phones loosens

Research In Motion (RIM) is a  telecommunication and wireless equipment company that established their brand  identity as the developer of blackberry. One of the well known establishment by RIM is providing cell phone for the U.S. government. About 18,000 employee of U.S. government is using a blackberry phone because of the high security provided by the product. However, the government is deciding to switch the operation system from blackberry blackberry OS to IOS (apple). The IOS system will be a better suit to the working system in U.S. government. The move of U.S. government is a minor blow in the company. As many new competitors are coming in the market few years ago, the market share of blackberry is shrinking. Losing the support of U.S. government is weakening the sales and the brand image that the blackberry established because of the U.S. government. With the launch of the new product blackberry 10, it is expected to gain to confident that is lost by previous products. In my opinion, the sales of blackberry is going to downfall. In order to improve the sales of blackberry, the store have to do make some innovative change of the product and may be lowering the price of the product to increase the sales.

http://www.cbc.ca/news/world/story/2012/11/01/blackberry-us-government.html

Japanese Car Sales In China Tumble

As the argument about the national of daoyu island goes on, Japanese car has suffered significant drop of sales. The long-goining debate has lead to Chinese people showing their racial sentiment by violent active such as burning down Japanese product. China is one of the biggest market around the world. In additional of the, China is also the biggest Japan’s export market. China takes up about 21% of Japanese export. Japanese car is facing a significant drop on sales. Toyota is facing a drop of 40% sales. Others car company are facing a similar amount of sales drop. Company are now being concerned about the situation of China’s market. CEO is worrying that the violent act will continue while their European competitors are getting new market shares.

In my opinion, Japanese car company has to find new strategy. They need to have a back up plan for the company. For example, they can form new sub company with some smaller China car company in order to retain the China market back. They can also swift their factory out of China in order to reduce the conflict with Chinese people.

Source:

http://www.theglobeandmail.com/report-on-business/international-business/asian-pacific-business/japan-car-sales-in-china-tumble-hit-by-islands-row/article4597901/

Enron’s Poor Ethics lead to collapse of company

Enron was an American cooperation selling natural gas, commodities. They are once the largest company in this area. With over 20000 staff and over 101 billion of revenue in 2000, Enron was selected to “American Most Innovative Company” for six continuos years. However, due to the poor business ethics the company has, they got bankrupted in 2001 and they are the largest company that got bankrupted in the American stock history.

WIth the low transparency of Enron accounting department, Enron is able to hide the large borrowings and the lack of ability to earn money. By moving numbers around, they are able to claim that their company is in a good shape and earning big buckets. However, lies cannot be covered forever, the truth is shown at last. Bad company ethics undermine the collapse of the energy empire. The failure of Enron reminds us the importance of business ethics. As a huge cooperation such as Enron has business ethics, many other small companies and all the employees  are also affected. The greed of the management department destroy the whole Enron.