Apple the One and Only

Along with the release of Iphone 4S and the death of Apple Inc’s ex-CEO and originator Steve Jobs, Apple news are everywhere in nowadays.

Despite this special reasons, Apple is still a mythical exists in electronic industries. It was founded on April fool’s day in 1976, within a 3 decays Apple now has became the world Top 1 electronic company which holds an impressive market in each aspect of products.

Why is Apple so successful?

Apple has a good brand positioning. Once you mention electronic devises the first bran came up in consumers mind must be Apple.

The most impressive thing is that Apple almost does the best in every product line. For computer, Apple entered the market latter than others, but it distinguishes itself from other brands by using its own system (Mac OS). For cell phone market, Apple gets strong competitive company such as Nokia and Blackberry. However since its specialization in appearance and the impact of the strong brand, Iphone is everywhere. Besides this Apple initiate a whole new product which is Ipad — tablet computer, once it was released the whole market was attracted buy this innovation and brought Apple more successful.

So for a brand, its position among consumers and markets is the key to success.

Pictures Resources:

Apple Market Share is #1 with the iPad

http://tabletcrunch.com/2011/04/26/ipad-tablet-market-share/ipad-market-share/

http://www.pitchengine.com/appcelerator/as-ipad-launch-nears-new-appcelerator-developer-survey-highlights-tight-race-between-apple-and-google/54999/

http://www.puremobile.ca/insiderblog/tag/apple-ipad-2

 

AECL Costs A Lot

The Atomic Energy of Canada Limited (AECL), Candu energy, signed a contract with Argentina which worth $400 million brought AECL into people’s sight.

AECL has been a financial problem for federal government for a long time.About $1.2 billion money form taxpayers’ pocket has spent on it. It was sold to Crown Company in 2007, and then the Crown Company was bought by engineering giant SNC-Lavalin Group of Montreal.However, after this contract AECL may gains some profits but since it no longer belongs federal government the profits seems not go into governments’ pocket.

Analysis of AECL from Porter’s 5 Forces:

Rivalry:Less

Few competitive companies.

Specialization in goods: environmental friendly, high technology, renewable and so on.

Supported by government.

 

Threat of Substitutes: High

Hydrogen electricity products.

Cheap resources: fossil fuels, wind, solar energy.

Costs a lot to purchase.

Buyers Power: Strong

Buyers are concentrated.

Certain buyers purchase a significant amount of outputs.

Buyers pose a threat to the company.

 

Supplier power: Medium

There are few competitive suppliers in this field.

Weak Customers

Supported by government.

 

Threat of New Entrants and Entry Barriers: Low

The technology required to enter is way too high.

The inputs cost a huge amount of money.

Have to be supported by government.

High inputs with low income.

 

For details about Poter’s Five Forces: http://www.quickmba.com/strategy/porter.shtml

Resources:

http://www.cbc.ca/news/business/story/2011/10/08/candu-reactor-argentina.html

http://en.wikipedia.org/wiki/Atomic_Energy_of_Canada_Limited

http://www.cbc.ca/news/business/story/2011/06/29/aecl-sale.html

Is Yuan Devaluating ?

After reading Johnson Kim’s Bolg about the introduction of a new legislation inU.S. to add higher duties on Chinese product as a fight back to the continuing devalued Chinese currency. I have few commons to say.

U.S.parliament thought Chinese government devalues Yuan on purpose, which results in a big trade deficit forU.S.and causing lost in job opportunities. However according the data the exchange rate of Yuan has kept increasing, which means Yuan has been rising in value since 1994. So why doesAmericaannounce it as devalued? That is because the value of Yuan today is much different than it used to be.

Following figure shows the inflation rate inChinafrom 1980 to 2008, and the inflation rate in 2009 and 2010 is 15.4 and 3.3 respectively. It is easy to tell that Chinese inflation rate kept increasing. In other words we can say Chinese currency is devaluating. The same amount of money today cannot buy equal amount of goods it used to buy. That’s the reason whyU.S.says Yuan is devaluated for a long period of time.  

Resources: http://zhidao.baidu.com/question/252628817.html

         http://wenku.baidu.com/view/55a78fd149649b6648d74726.html

         http://www.forecasts.org/data/data/EXCHUS.htm

 

From AAA to AA+

On August 5th 2011, Standard & Poors announced to downgrade American credit rank from the highest AAA to AA+, which caused world wide economic turmoil. This is the first time that U.S.A, the superpower country, was downgraded over recent centuries on credit rank.

This degradation not only reflects the problem onU.S.economy, but also on the improper political policies taken by federal government.Video 1: America Downgraded

On the similar situation, Greek credit rating was downgraded from A- to BBB+ by World top three credit rating agency on December 18th 2009, which initiated European debit crisis.Video 2: Greece Crisis 

Now world’s two largest economic entities are facing serious problem on the financial problem and government policies. Another world wide financial crisis is probably going to happen in other days, which can be told from the sluggish stock market.

It will also affect Asian market in which most developing economic entities are located. The developing markets attract more international investment into the economy, but with these unstable factors these rising economic entities are also facing huge financial uncertainty.