Monthly Archives: October 2014

With the rise of Ebay and Amazon, these companies have been successful points of exchange for sellers and consumers, thereby expanding the e-commerce world. Similarly Etsy, an online marketplace for handmade crafts, is a platform for aspiring entrepreneurs to bloom their business.

Etsy’s homepage featuring handcrafted items (Source: Etsy)

What makes them different, however, has been their keen sense of focus on sustainability through their vision to help create jobs for craftsmen and artisans within the community while ensuring quality, handmade products to their online shoppers through strict policies. Since October, things have ventured down a different path for Etsy, as they announced guidelines to accommodate the growth of their sellers.

While focused on the growth of the company, they must be careful with the decisions they make. Previously distinguished by their “handmade ethos”, the company’s prospects of expanding have generated complaints from the public, claiming that Etsy has simply become a sales engine like Ebay. I personally care about the workmanship of my jewellery products. In light of many similar customers, the company may well be tarnishing one of their competitive advantages. As a hybrid enterprise with profit maximization in mind, the company must create shared value without compensating the societal need for quality products (Harvard Business Review).

Ever since the move up north in March 2013, the big-box US department store, Target, has faced its fair share of challenges, receiving a disappointing return given the high costs and low sales. As a result of “aligning marketing with the consumer decision journey” (McKinsey & Company), Target has decided to focus on partnerships with Canadian designers, delivering a new value proposition to proud Canadians wishing to sport the latest and greatest.

With their mindset heavily doted on brand recognition within the market segment, Target is igniting the trigger in the consumer’s initial-consideration set. Introducing brands in support of Canadian talent will appeal to the average Canadian consumer. Not to mention Target’s involvement with Toronto and Montreal’s Fashion Week, which will generate hype from fashion-forward divas and build awareness for the high-profile designer collections offered at this department store.

Target Spring/Summer 2015 fashion show at World MasterCard Fashion Week in Toronto (Source: CNW)

In addition, Target is aiming to address operations-related issues of empty shelves and relatively high prices compared to the US. In our world of marketing, a consumer’s final decisions are made in store – without products on shelves, consumers will not even have a visual option to consider. As a result, this issue is of both high urgence and high importance.

Ever scanned through the menu at a local fine dining restaurant and come across this symbol?  (Source: Vancouver Aquarium Ocean Wise)

While consumers are becoming more environmentally conscious, Vancouver locals are also being more vigilant when considering dining options; Ocean Wise being one of the many programs guaranteeing an ocean-friendly seafood choice.

BC salmon farmers, not only wishing to gain recognition on a local scale, are also striving to meet a new global environmental standard, the Aquaculture Stewardship Council certification.

Why would players in the food industry go through such hassle and regulation? To create product market fit (Steve Blank). As we see a growing segment of sustainably selective consumers, the industry is trying to satisfy customer needs. It is a point of difference that is likely going to place certain businesses on a higher playing field, given the rigour of the certification.

For instance, Loblaws, who has been losing market share to domestic and foreign competitors like Walmart, will be the first retailer in North America to sell ASC certified salmon, as a strategy to put them ahead in the game. While it isn’t necessarily the farming method that customers are worried about, the ASC standard will definitely provide a safety assurance, delivering customers a value proposition that fulfills “jobs-to-be-done” (Clayton Christensen).

According to Porter’s 5 forces, threat of new entrants seem to be Taseko Mines Ltd.’s largest issue as of current. With a new government policy imposed to subdue mining activity in their proposed Prosperity Mine due to Chilcotin First Nations land rights, the company will have to undergo a major revamp on their business model in order to sustain their business.

Chilcotin’s Dasiqox Tribal Park includes Fish Lake, above, as well as the site of Taseko’s proposed New Prosperity mine. (The Vancouver Sun)

While Taseko Mines Ltd.’s Fish Lake property is in fact outside the title area of the Chilcotin, the natives, claiming hunting, fishing, and trapping rights “have folded the mine site into the tribal park boundary” (The Vancouver Sun).

Consequently? Taseko Mines is attempting to fight back, though chances of the project continuing are slim to none. As Christy Clark states, “recognizing aboriginal title represents a new “fork in the road” for improved government relations with native people” (The Vancouver Sun), it is evident that the government is prioritizing community over commercial relationships. As a result, Taseko has had to alter its key activities, looking into purchasing the mineral exploration and development company Curis Resources and changing its avenue from Vancouver to central Arizona (The Globe and Mail).

While Taseko has a solid backup plan, what will become of the rest of the commercial sector if the issue of native land rights persists? Is respecting the original inhabitants of Canada more important than the stake of our future economy?