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