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  • NBA stars in Google’s new marketing ploy
  • Asia’s got talent..?
  • entrepreneur: Zara
  • And again…
  • The retailers respond to the ever-changing customer behaviour
  • Destroying itself: why did Borders go bankrupt?
  • Over achievers: Carrefour can’t keep up with its own international expansion
  • Innovative affordability: bridging the digital divide
  • The iphone 4s a disappointment?
  • Should we start helping the planet…?

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Did you know that Google has developed its own social networking platform called Google+. If not, that is exactly why the company has partnered with top NBA players such as LeBron James as its newest marketing ploy. Google is set to be the main sponsor of a “four-game exhibition dubbed the Google+ Homecoming Tour”. The company is also encouraging sports teams to connect with their fans through Google+.

Like blogger Matt Lundy, I think it was a smart move for Google to go in the direction of sports to help market its new platform. Not only is the company generating more exposure, it is also infiltrating itself slowly into the sporting world which is an area it has yet to venture in. Although this plan may seem slightly ambiguous, “more than 1000 users have [the event page] in their circles” – showing a definite interest by the public. Now with its foot in the door, Google is looking to stream live NBA and NHL games in the future using YouTube. As Lundy pointed out, this could become a great advantage if the company successfully offer strong streaming which will set it apart from its biggest rival: Facebook. I anticipate seeing how far down the court the NBA will take Google before the period ends. 🙂

When I read Cameron’s blog about the lack of talent in the eastern world, I was immediately reminded of an article I read way back in high school. However, I don’t fully agree with the notion that the people are struggling to keep up with the fast-paced economy.

Even though China usually comes to mind when we think eastern hemisphere, we mustn’t forget about India. Not only does it have an increasingly young population, but it is generation of entrepreneurs.

They are consistently producing cheap, affordable goods and services that are specifically tailored to suit the needs of Indian citizens. For example, many Indians are vegetarians; therefore LG has developed a fridge with more drawers for vegetables and less freezer space. Also, “the firm sells voice-activated washing machines for middle-class families with illiterate maids”.

Although, much of the young population is illiterate (40%), I think that it is even more amazing that they are able to come up with such innovative ideas without proper education. Furthermore, the government can always work on implementing a more efficient education system to solve this problem. I believe that India is very much part of the world’s economic growth, don’t stop at China when you think Asia!

I believe that Zara envelops the definition of being an entrepreneurial business. As we discussed in class, it has a very unique inventory and operating system. The company has an in-house production plant which allows them to finish the whole process from designing to the actual technical work to putting them in stores in a span of 3 weeks. When we compare this rate to other retailers such as H&M and GAP, these companies take up to five months before putting their products on shelves. Zara’s flexibility is due to its “up-to-the-minute idea of what is selling” which is information that comes directly from the various stores themselves every day through the use of IT.

Finally, why do I think Zara is a good example of entrepreneurship? Instead of following the traditional ways, the company developed its own methods of producing quality products quickly which turned out to be its key to success. All of these aspects have also contributed to building a strong brand image. Zara is seen as “very original and design-led”. This is a hard stage to attain but now the company can be confident that when customers walk into a Zara store, they know they won’t be disappointed. Atleast I know I never am!

The question behind Apple, android or RIM has been in the centre of attention ever since the explosion of smart phone users. Now that RIM has clearly fallen behind, what will entice a consumer to purchase an iPhone rather than a HTC touch?

Although there are strong supporters for the iOS5 system, as both Katrina and Alice pointed out, users are not satisfied with the features of the iPhone 4S. I also discussed in a previous post of mine the disappointment surrounding Apple’s new release as many features were already available in various android phones.

Other then the overlapping of features, Android also has much more flexible regulations for its apps making them “better equipped for global presence”. This allows developers to fully customize them to the needs of specific target markets. Also, Android boosts the major advantage of having the support of Google, which we all know rules the internet empire. On the contrary, Apple has always been known for its limited and strict system that has served the company well; however may hinder its future innovations. Though the two providers are currently matched, perhaps Android should be more aware of their lack of imposed expectations and Apple should open up to more possibilities.

The retail industry has recognized that consumers no longer buy on impulse but rather they have been coined “mission shoppers”. These customers go to stores with all their research done and records “less visits to stores per trip (3 vs 5 before the recession)”.

For a short while, companies had turned its focuses into the online retailing market but now it recognizes the importance of training an efficient floor crew and strategic marketing methods. For example, many stores are renovating with new concepts such as Nike’s racetrack layout that is designed to encourage browsing. Furthermore, companies are improving customer service by “arming its floorwalkers with iPhones” which I think is a step towards direct operations as customers can access the catalogue more efficiently. Also, there are hints of product decentralization as retail stores are “grouping merchandise into lifestyle categories.”

I think that these changes not only increase customer satisfaction, but also employee job satisfaction. The organizational culture will improve as the companies make an effort to give employees better resources when their on the job. Finally, there is no doubt that businesses are demonstrating excellent market research with its innovative ideas and use of technology. They are doing a great job responding to the ever-changing customer behaviour.

In today’s fast paced technological world, one wouldn’t be surprised to hear book stores closing as they yield to tablets and e-books. However, Borders brought bankruptcy onto themselves. Disaster occurred through a series of bad decisions made.

Its first problem occurs simply on its location. The company tended to “pick B locations…and [tried] to turn these sites into A economics.” This became a major barrier of entry as its biggest competitor, Barnes and Noble, already had possession over all the better locations. Also, the company demonstrated poor market research as it invested in CDs and DVDs “just as music and movies were going digital”. Another main difficulty was Border’s insistence on using its outdated operating system for organization.

Border’s should have concentrated on generating relevant market research that followed the rising technology trends. It would’ve also minimized lost capital invested in failed projects like the CDs/DVDs. Also, the company could have taken advantage of MIS to prevent itself from becoming increasingly disorganized. Though the company tried to use the differentiation strategy by boasting a large selection of books, this wasn’t enough for it to secure the position of market leader in the industry.  Had Borders re-evaluated its position as a company, perhaps it wouldn’t be in the process of being sold off to new investors as it is today.

Carrefour is the Walmart of Europe. However, after 3 decades of investment, “Carrefour shares have plunged nearly two-thirds since 2007”. Although both companies market a similar idea: products at low prices, Carrefour has fallen behind to a 5.5% operating margins compared to Walmart’s 7.5%. The reason behind its failure is the rapid international expansion the company tried to take on when it was clearly unprepared. It entered “24 countries between 1994 and 2004” and though it did establish a market in China, Carrefour was forced to sell off operations in 10 other countries.

I think that this problem occurred mainly because of insufficient market research and poor management as the company made decisions. As we touched on in class, businesses (especially ones looking to go international) must be careful to take into account of the different personal, social and cultural factors present in each society. The values and methods that a successful Carrefour branch in France displayed may not be parallel to the people in Japan or Russia. It is also hard to maintain adequate control over employees when they are so far away from headquarters. Carrefour should carefully consider the new market’s culture before trying their luck in expansion again.

 

 

 

 

We should be aware that over half the world’s population cannot afford the $799.99 iPhone 4. Smaller companies such as China’s Huawei have recognized this and started to develop phones that specifically target consumers in Africa. They are looking to “bridge the gap between the digital divide”. This means their focus will be on one thing: affordability.

Huawei has brought an $80 phone called the “Ideos” to the market using the Android system. Their secret is using less powerful hardware such as a RAM that is only half the size of other phones. Furthermore, Android has flexibility on its side. Companies like Apple have strict regulations which prevent developers to fully customize applications to the needs of the community. Android has consistently been showcasing many agriculture and health based apps.

This is a huge step for technology because this could change how people in developing countries live entirely. Also, there is a whole new market being opened up. I think we will continue to see more and more products going in this direction. Moreover, I wonder how big-name companies will react; will they also start to produce low-cost technology to cater to the shift in the market?

The iPhone 4S may very well be a disappointment for many consumers. Many of its new features can already be found in various existing android models. For example, the iPhone uses an A5 dual-core processor which is also used in the Motorola Atrix 4G (dual-core chip) and the newest android, the Samsung Galaxy S II. Siri, iPhone 4S’s main feature and the 8 megapixel camera have also been available for almost a year now. Unfortunately, even along with these replicated features, the iPhone 4S doesn’t surpass its sister, the IPhone 4 by very far.

This situation could potentially reduce the quantity demanded for the phone greatly. Consumers had expected an iPhone 5 with newer and more advanced innovations but were met with the iPhone 4S and its inadequate selection of features. Even though Apple debuted as the market leader, the company seems to be playing a game of catch up with the fast-moving technology. Apple’s failure to impress has been seen as an advantage for RIM/blackberry, giving them time to promote their next product before the anticipated faceoff with the iPhone 5.  With Apple stocks dropping rapidly and the lack of advancement in their phones, if they continue at this rate, we may see the company run over in a couple years. The company desperately needs to come up with something mind blowing for its next release to make up for falling short with their iPhone 4S.

http://business.financialpost.com/2011/10/04/apple-unveils-iphone-4s-as-new-ceo-tim-cook-takes-centre-stage/

http://www.product-reviews.net/2011/10/08/iphone-4s-features-android-already-had/

When we think green, we never expect business leaders such as Wal-Mart Brazil’s president, Hector Nunez to be nodding on the side as speakers such as the director of Greenpeace Brazil explain their beliefs on reusable bags instead of plastic ones.

Nunez has imposed new regulations, stating that its supply chains must not use slave labour, “soybeans from illegally deforested areas” and “beef sourced from newly clear Amazonian land”. The company is even insisting on a “70% reduction in phosphates in detergent by 2013”. Amazingly, Wal-Mart has been successful with its campaign by getting 20 major suppliers such as PepsiCo and Cargill to sign agreements, stating that they will oblige to the newly enforced rules.

This has led us to wonder why these companies (and others) have taken so long to respond to the global needs of “greener” practices and sourcing strategies or even other issues such as equality in the workforce between men/women. Perhaps companies will start requiring “proof of equal pay for women” when importing their goods. There are endless ways to address the arising problems.We are all wondering when we will see a change – if there’s even any time left before the world falls into an irreversible state.

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