In an online article published by the The Canadian Business Journal, the popular gaming phenomenon, Guitar Hero has been discontinued due to rapidly declining sales. Guitar Hero boasts an unique point of difference, guaranteeing the ultimate music/band jamming simulation experience, which involves a physical plastic instruments to enhance the realism of the game.

However, the very specialty of the game has emerged as a double-edged sword– the bulky peripherals, first set out to be Guitar Hero’s competitive advantage, has ultimately cost the game a sustained customer-gamer base. Like many others games, annual releases of new versions with updated game data, enhanced graphics and more relevant music are a common trend. However, in the case of Guitar Hero, many players have become increasingly reluctant to purchase new versions of the game which includes expensive instrument-shaped peripherals and a couple of new songs.

As a business, especially one in the gaming industry, having a consistent (if not, growing) player base is imperative. Keeping players interested in the form of new versions of the game, should be prioritized. Furthermore, companies have to keep in mind their customer market (teenagers with limited budgets and changing preferences) when creating games, to retain their appeal.

Citations:

1. http://www.cbj.ca/blog/rip-guitar-hero-too-much-of-a-good-thing/

2. http://static.ddmcdn.com/gif/guitar-hero-2.jpg

It is without a doubt, that K-Pop has made it’s mark on the international music scene. Super Junior’s catchy tracks, EXO’s coordinated dance moves and SHINee’s loveable boy-next-door image have defined hallyu or the Korean Wave. However, behind the record breaking album sales, sold-out world tours and countless fandoms (fan clubs), k-pop is undoubtedly a solid and profitable business.

S.M. Entertainment, one of the three largest record label and talent agencies in Korea, has made brand names of its artistes by being the first Korean label to establish overseas partnerships. Furthermore, S.M. also has a finesse with resolving issues involving music piracy, by fine-tuning its revenue streams from album sales to include price-reduced online music, artiste product endorsement and involvements in musicals.

Established in the 90s and currently earning a revenue of $166 million, S.M. definitely knows what it’s doing, and is clearly good at it. S.M.’s formulaic approach to achieve success for its artistes is strategically aimed at massive traditional and new media exposure, merchandising and overseas engagements with international fans. By understanding the changes in times and technology, as well as by acknowledging the influence of foreign fans, S.M. has and will continue to amaze the world with its music.

Tie in with Song Zewei’s Blog.

Citations:

1. http://www.forbes.com/sites/forbesasia/2013/07/31/koreas-s-m-entertainment-the-company-that-created-k-pop/

2.http://www.officiallykmusic.com/wp-content/uploads/2013/03/130324SuperShow.jpg

The Herschel Little America backpack, a stylish and modern retake on the hiking sack, is synonymous with teen fashion and culture. The design, equipped with striped lining, unique hues and chic straps, has allowed the Vancouver based company to grow exponentially, with its outreach in almost 40 countries.

However, despite Herschel’s current success, Lyndon and Jamie Cormack, the founders of the Herschel Supply Co. Brand, are aware that relying on trendy teenagers may not be a sustainable way to ensure the company’s consistent growth. Hence, Herschel has created 3 sub-groups with products created to cater to the high-end, mid-range and low-cost spender.

Like many players in fashion, the success of a brand may face sudden success (and abrupt unpopularity) due to trends. Remaining one-dimensional in terms of the target customers and only focussing on certain types of products may compromise on the company’s ability to adapt to changing times and fads. In Herschel’s case, the company has chosen to widen the target market. However, Herschel should also ensure that its current consumer group (teenagers) remain interested and committed to the brand by varying the products design, having a larger marketing outreach and by establishing themselves as a house brand to secure customer loyalty.

Citation:

1. http://www.theglobeandmail.com/report-on-business/small-business/sb-marketing/sales/can-herschel-backpacks-go-mainstream-and-keep-their-cool/article12201755/

Since Luluemon’s CEO, Christine Day, resigned, Lululemon has been embroiled in a series of controversies, ranging from quality control to product shortages. Now, to further fan the flames, Lululemon’s co-founder, Chip Wilson, has made foot-in-mouth comments regarding physical sizes of the products’ users.

In response to complaints of sheerness and pilling of the company’s best-selling Luon yoga pants, Wilson claimed that not every woman’s body was suited for the product; and that the sheerness and pilling was a result of too much friction and over-stretching by certain users.

Lululemon has portrayed the image of a inclusively healthy company that leveraged on the close connections with it’s yoga-enthusiastic and actively dynamic customer base. However, Wilson’s reckless comments could singlehandedly affect customer perceptions on the brand. Add on the lack of plus-size clothing to the equation and the average woman (who is typically a size 12 or 14) becomes excluded from Lululemon’s formula for promoting an all-inclusive healthy lifestyle.

Founders of a company build firms on certain values and beliefs, and allow the organization to grow from a common philosophy. If the founder (especially in the absence of a CEO) is unable to project those values, the company may face cracks in its foundation.

Citations:

1.http://www.forbes.com/sites/lydiadishman/2013/11/08/lululemons-biggest-problem-is-a-founder-with-foot-in-mouth-disease/

2.http://images.bwbx.io/cms/2011-09-08/comp__lululemon38__01__600.jpg

3.http://theyogablog.com/wp-content/uploads/2013/05/Photo-2013-03-22-1-28-PM.jpg

Disney, a company synonymous with family-friendliness is currently facing a struggle with the gambling industry due to its indirect presence in casinos and slot machines. Having recently acquired Marvel for US$4 billion in 2009, many of the Marvel superheroes including Spiderman and Iron Man now belong to the Disney character pool. Apart from the characters, Disney has also carried along the various casino and gambling related activities that bear the faces of Marvel characters. Similarly, the acquiring of Lucasfilm for US$4 billion in 2012 has also associated Disney with the gambling industry since Star Wars characters are common faces on slot machines in casinos as well. As much as Disney has shown its disapproval for Vegas-styled integrated resorts in family-oriented Florida, its recent acquisitions of Marvel and Lucasfilm have inevitable embroiled it in a hypocritical battle.

Although being firm and unrelenting towards actions that may threaten a company’s beliefs and vision is a admirable, it becomes a challenge when external companies that were not initially ‘built and raised’ with the same expectations and values are acquired and integrated into the parent company. Companies are therefore straddled in a dilemma of acquiring another company for advancement and facing contradictions in values after acquisition.

Citations:

http://now.wms.com/secure/image/spiderman.jpg

Having the privilege to listen to three notable alumni made me realise that the Sauder community functions like a bicycle, with generations of graduates and undergraduates coming together with shared experience to move in tandem, towards the progress of the faculty and business world.

Nolan Watson, the CEO of Sandstorm Gold, exemplifies the strength and tenacity of a Sauderite. Having faced rejection, struggles and disappointment prior to obtaining funds to start his current company, his experience reminds us that the outside world cannot be viewed with rose-tinted glasses and that beyond intelligence, teamwork and perseverance makes a difference.

Tina Lu of Lush Comestics, shared her valuable insight into the importance of connections and building a strong profile. Leaving lasting impressions and taking the leap of faith may open up opportunities for career advancements. Furthermore, her willingness to connect and engage with undergraduates is testament to the strong sense of community in Sauder, where one graduates but is never detached from the alma mater.

Wade Larson, President and COO of UrtheCast, fuses uniqueness with distinctiveness with his company that captures live footage of the Earth from cameras affixed on the International Space station. Apart from the exhilaration and excitement that comes with the launch, there may be potential problems such as the misuse of information and infringement of privacy. Larson combines confidence, creativity and calmness when it comes to his company and these are traits that are admirable and inspiring.

Tie in with Kevin Ding’s Blog.

Citations:

http://www.sauder.ubc.ca/~/media/Images/About/door-sauder.ashx

Word-of-mouth is one of the most persuasive marketing tools there is. After buying new shoes, visiting that new cafe or reading that NYT’s bestseller, consumers will develop perceptions towards that experience and naturally, share them with the people around them. This recounting of customer experience influences and shapes the way that others may perceive a brand or company, leading to positive promotions or negative avoidance all together.

With this mechanism in mind, Google users will soon become product or brand endorsers. Users who have followed, liked or commented on specific products or services on Google utilities, may have their names, photos and comments used in online ads. Users may opt out of ads on social networking sites and those under 18 will not have their information used in commercial ads.

When family and friends endorse a product, potential consumers are aware of the reliability of those reviews and are more inclined to go with products/services people around them support and have positive experiences with. However, it is crucial for Google to ensure that the privacy of their users is kept as a priority to prevent infringement. Words are mightier than the sword; and that definitely holds true in online marketing.

Sources:

1. http://www.theglobeandmail.com/technology/business-technology/now-google-wants-to-use-your-face-to-sell-ads/article14835102/

2.http://www.millitalk.com/uploads/GoogleZipperlogo.jpg

The advancement of technology has resulted in many conveniences for the 21st century dweller. Many traditional forms of media are being ‘electronised’ to ensure on-the-go convenience and practicality.

Scribd, an online reading platform that features a collection of literary material, will be pioneering a monthly e-book subscription, similar to Netflix’s monthly movie streaming subscription. For US$8.99 a month, readers will be able to have access to titles published by HarperCollins.

However, the e-book market is populated with competitors, including Apple’s iBooks and Amazon’s Kindle. What sets Scribd apart is the fact that it provides unlimited access to titles in a given time; whereas others sell individual titles, as bookstores do with books.

Scribd’s e-book subscription may gain popularity with avid book readers who will fully utilise the subscription. However, most casual readers who read over extended periods of time. They would probaly stick with iBooks or Kindle since the average price of an e-book is comparable to a monthly subscription with Scribd. Scribd may be unable to share Netflix’s success, since reading is requires time & concerted effort, unlike movies that stream for approximately 2 hours. However, the future of e-books is promising and Scribd shall spearhead this exciting literary evolution.

Sources:

• http://www.cbc.ca/news/arts/scribd-harpercollins-try-out-netflix-model-for-e-books-1.1874665
• http://d.fastcompany.net/multisite_files/fastcompany/imagecache/1280/poster/2013/09/3018856-poster-p-1-scribd-harpercollins-launch-899-subscription-book-service.jpg

A CEO is someone associated with being the pillar and foundation that oversees a company and its operations. However, in situations where companies require to take drastic action to do what is in the best interest of the corporation, CEOs may leave their positions and receive payouts. In the case with Nokia, a pioneer in the wireless industry, it was recently discovered that their ex-CEO, Stephen Elop, would gain US$25.5 million upon the buyout of Nokia to tech giant, Microsoft.

Many question whether such an outrageous payout is justified. Before becoming Nokia’s CEO, Elop was the chief of Microsoft’s business division. Furthermore, he is to return to Microsoft as an executive who will manage the fusion of Nokia technology into Microsoft products.

Although CEOs deserve huge forms of monetary compensation since they do play critical roles in organizations, it is difficult to place a value on their contributions, especially if complicated business connections are involved. To prevent criticism, ex-CEOs should reduce their payouts voluntarily or governments should place taxes on such payouts. Ultimately, business and leadership is more than what is deposited into an account– it is the impact and the foresight that drives a corporation into a new direction.

Source:

• http://www.cbc.ca/news/business/stephen-elop-to-get-25-5m-for-selling-nokia-to-microsoft-1.1867972
• http://icdn5.digitaltrends.com/image/nokia-microsoft-acquisition-1253×776.jpg

Days before Apple unveiled the much anticipated iPhone 5C & 5S, Xiaomi’s CEO, Lei Jun, released the Mi-3. Both the iPhone 5C/S and Mi-3 are renowned for their sleek designs and consumer usability, making Xiaomi appear to be China’s version of its American counterpart, Apple.

However, contrary to popular belief, Xiaomi and Apple have very different business models. First and foremost, there is a large difference in the prices of the iPhone 5C ($860) and Mi-3 ($330) and ultimately, the target customer. Even though the 5C is supposedly more affordable, it pales in comparison to the Mi-3 which takes affordability and accessibility seriously. It will appeal to the majority of mid-high income customers. Separately, the customer outreach of both companies are dissimilar. Apple has developed a somewhat distant relationship with their customers; building the products based on what the company views as required. Xiaomi has established close relationships with their consumers by requesting for feedback and conducting votes and ultimately basing the product on what consumers want.

Xiaomi (5%) deserves credit for beating Apple (4.8%) in terms of market share; it is unfairly labelled as Apple’s Chinese copy-cat. At the end of the day, perhaps there are some lessons that Goliath should learn from David.

Source: http://www.economist.com/news/business/21586344-xiaomi-often-described-chinas-answer-apple-actually-quite-different-taking-bite-out