Day: October 7, 2013

Japan Airlines has decided to switch and purchase its very first ever European manufacturer Airbus jets, instead of its traditional U.S. Boeing jets. This decision, made by the JAL on its own without any consultation from the government despite sinking into bankruptcy just three years ago. It only re-emerged through a government bailout.

This shows that competition can appear unexpectedly, even with a key partnership that you have built a relationship with for 50 years. It is of the companies’ best interest to do what will maximize efficiency. JAL switches to Airbus because it was well suited to their needs, but when the time comes, will the cost of training new pilots be too expensive for JAL, sending them to lose a big sum of money? The decision was made, and it definitely shocked US aircraft manufacturer Boeing, which must now look for a way to deal with the sudden lost. It is hard to forecast such decisions, but what should Boeing do? It could firstly re-invent its image by creating something positive to counteract the negativity around 787 jets.

Source:

“Japan Airlines chooses Airbus over Boeing for new jet order – Business – CBC News.” CBC.ca – Canadian News Sports Entertainment Kids Docs Radio TV. N.p., n.d. Web. 8 Oct. 2013. <http://www.cbc.ca/news/business/japan-airlines-chooses-airbus-over-boeing-for-new-jet-order-1.1928080>.

Twitter is preparing for its initial public offering, and to do so, Twitter is pushing hard to get itself into the TV advertising economy. Twitter has already made partnerships with big television content owners, MTV, NFL, CBS. This way, real-time clips are available on Twitter with a short ad right before. Twitter breaks out of its narrow revenue stream and broadens it by luring in potential investors with such ads that pitches to smartphones and tablets as well.

Initial public offering is when a private company becomes a public one and offers its stock to the general public. The preparation Twitter has arranged connects to the business model canvas in such a way that every aspect needs to be well planned in order for a successful IPO, as an example. Expanding niche-like revenue streams, thinking about possible key partnerships that will make the value proposition successful is basically what Twitter is doing right now.  The competition in the market also surfaces, as Facebook is threatened by the number of celebrity’s on Twitter and its unique hash tag system, in which Facebook adopted. Competition will always lead to innovation, and that is crucial for long-term success.

Will the TV ads embedded into clips be a success?

Source:

“Twitter IPO details raise questions over financials, bots – Business – CBC News.”CBC.ca – Canadian News Sports Entertainment Kids Docs Radio TV. N.p., n.d. Web. 8 Oct. 2013. <http://www.cbc.ca/news/business/twitter-ipo-details-raise-questions-over-financials-bots-1.1912936>.