Long & McQuade is one of Canada’s most successful home-grown business with an annual revenue closing at $300 million. All of the stores are corporately owned and Long & McQuade’s value preposition is not to make profit, but to retain a long term relationship with their customers; this preposition makes up their unique business model.

Not many firms are able to be successful just based off of customer loyalty, thus this gives Long & McQuade a competitive edge. Since this business is still run by the family, I think the family atmosphere corporate culture still exists. As learnt in class, the culture begins with the founder. The corporate culture of this company would then lead to a flatter and more centralized corporate structure.

As a long time piano, orchestra, and band student, I am very accustomed to visits to my local Long & McQuade. This company is a long-time sponsor for my high school band, and I think that most of the marketing is through the band folders they distribute, and the music festivals they support. Additionally, whenever I walk into Long & McQuade, I feel very welcomed and the employees are extremely helpful. If given the choice, I would rather go to Long & McQuade than Tom Lee.

Sources:

http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/long-mcquade-ceo-on-family-owned-business-success/article15478894/

I was very enlightened after reading Chris Mile’s article, 10 Corporations Control Almost Everything You Buy. Prior to this article, I did not realize how much market power these monopolies had. Growing up, I assumed that most of the brands ran independently and only sold the items they were known for. For example, I thought Nestle only sold hot chocolate and chocolate chips, but after analyzing the diagram, it seems that Nestle also owns L’Oreal which is known for their shampoo.

Many of the brands are competing against each other in the same market, yet they are owned by the same company. This is a clever marketing scheme, as numerous consumers are oblivious to the fact that regardless of what brand they buy, the company still makes profit.

When using porter’s five forces to analyze the competitive rivalry within an industry, there is a barrier to entry for new businesses who plan to enter the food industry. Additionally, there may be many substitutes within a market, but the substitute is most likely also owned by the monopoly. For example, when deciding between two fast-food places such as KFC or Pizza Hut, no matter what is chosen, Yum! makes money, thus increasing PepsiCo’s revenue.

Source:

http://www.policymic.com/articles/71255/10-corporations-control-almost-everything-you-buy-this-chart-shows-how?utm_source=takepart&utm_medium=social&utm_campaign=nov

I was really intrigued after reading Bryan Jiang’s blog, The Real Reason Behind the iPhone 5C, I presumed the main reason for Apple’s decision to release a lower end model of the iPhone 5S was to target a different market. The assumption was that “c” in iPhone 5C stood for “cheap.” As stated in Bryan’s second paragraph, this product could be intended to target a “new rising demographic of smartphone users.” This brings up an interesting question about the iPods, as it seems that Apple might completely phase them out and no longer make them.

According to Tony Bradley, his three main theories to why Apple created the iPhone 5C are as follows: cheaper iPhone for emerging markets, aimed at kids, and intended to clearly separate from iPhone 5S. I agree with those three points, but in addition, it seems as if Apple may have launched this iPhone line just to be different from their competitors. Similarly, Samsung has the Galaxy S4 mini. By launching the iPhone 5C, Apple may be competing in that market.

If Apple had priced the iPhone 5C at a cheaper price, I think it would have been more successful. Prior to the launch, numerous consumers assumed this phone would be cheap. Since the price was much higher than their expectations, the quantity demanded is lessened.

Sources:

http://www.forbes.com/sites/tonybradley/2013/09/16/three-reasons-apple-created-the-iphone-5c/

The Real Reason Behind the iPhone 5C

In response to Kristina’s blog about TELUS, I also agree that the success of the company is due to the “highly acclaimed corporate culture.” As mentioned in Kristina’s final paragraph, employees are given the flexibility to work at home. Additionally, autonomy and empowerment are given when they work independently from home, thus increasing job satisfaction. For many employees who live in suburban areas, working at home is cost efficient and better time allocation. According to CBC, if one were to be stuck in traffic for 30 mins daily, a total of 83 hours a year would be wasted. Happier employees lead to more satisfied customers.

TELUS is leading such a great example, that Rogers Communication Inc. is also shifting their focus to corporate culture. Not only is corporate culture important, so is corporate social responsibility; these two terms tend to go hand-in-hand. In TELUS’s 2012 Corporate Social Responsibility Report, the company reportedly invested in numerous communities and contributed to reducing the impact of climate change. Furthermore, by displaying to their customers that TELUS cares, they are connecting with many customers on a more personal level. Hence, customers remain loyal to TELUS, which decreases customer turnover rates.

TELUS reveals its secret to success provides insight to the company’s corporate culture.

Sources:

Telus Corp’s future is friendly – and full of success

TELUS_Critter_Roll_Wallpaper_by_pootpoot1999.jpg

http://www.cbc.ca/news/canada/british-columbia/metro-vancouver-traffic-congestion-2nd-worst-in-north-america-1.1380948

http://csr.telus.com/en/

http://www.theglobeandmail.com/report-on-business/incoming-rogers-ceo-expected-to-spark-culture-shift-at-cable-giant/article15445703/

http://www.astd.org/Publications/Magazines/TD/TD-Archive/2012/09/TELUS-Reveals-Its-Secret-to-Success

            Not too long ago, Amazon launched its online grocery store, which offers 15,000 different non-perishable food items. Expanding into the online grocery market segment is a sustainable strategy for Amazon, as food is a necessity, therefore the demand for it would be constant sloping. Amazon needs to continue to be innovative in order to increase business profit growth, and entering the grocery e-commerce industry is the best way.

Currently, Wal-Mart is the only other retailer that offers online grocery shopping. By entering a new market with few competitors, Amazon has the capabilities of expanding into fresh produce. Many customers turn to online shopping simply because it is of more convenience as the consumers could be restricted by time and geographical location.

Amazon is very experienced in the e-commerce market and has a very effective marketing strategy, the recommendation bar. By compiling a list of items the consumer may be likely to purchase based on their shopping habits, it will likely increase the willingness for the consumer to purchase that item. Though, there are some set backs with the recommendation bar since the recommendations may not be necessarily great ones. This recent article is a great example of recommendations gone wrong.

Sources:

http://4.bp.blogspot.com/-Ys3vLfzzxeQ/UdoL7iw3XZI/AAAAAAAADys/rlpMjpAtVWw/s1600/amazon+grocery.jpg

http://www.walmart.ca/en/grocery/N-117

http://www.theglobeandmail.com/report-on-business/international-business/us-
business/amazon-to-take-on-grocers-as-retail-landscape-gets-more-crowded/article15172182/

https://encrypted-tbn2.gstatic.com/images?q=tbn:ANd9GcRTq7oAYpImWOXR-Ta803-DyblohkxrZQSulqSkY_LO8WfCF5CN0Q

http://www.dailymail.co.uk/news/article-2478322/Kinky-links.html