Monthly Archives: October 2013

Response to Peter Chen’s post.

This article piqued my interest not only because of the business aspect of bottled water in a city where clean tap water is readily available, but because of the environmental issues the article presents. I found it interesting how Vancouverites were always willing to purchase bottled water when the city’s tap water is the purest in the world, according to BC Living. Not only are the plastic bottles unsustainable, albeit convenient, but tap water is arguably cleaner than bottled water. It is tested for bacteria about 25,000 times a year compared to bottled water plants which are inspected once every three years.

The question is, why do people continue to buy bottled water? The answer lies in the success of bottled water marketing companies. They were able to position themselves in a way that makes their product competitive, even though tap water is virtually free. By advertising their product as unique and addressing the purity of their bottled water, companies are able to bait the health conscious Vancouver population and create these marketing myths that are permanently engraved in the minds of citizens all over the world.

Sources:

https://blogs.ubc.ca/peterchen604/2013/09/20/bottled-water-vancouvers-greatest-marketing-success/

http://www.bcliving.ca/home/what-youre-too-good-for-our-water

Picture: Fiji Bottled Water

Silk Road was an online underground black market for selling drugs and other illegal services that was shut down by the FBI earlier this month. Their differentiating factor was their ability to provide a platform where transactions could be made completely anonymously using a unique method of digital payment called the Bitcoin. Before being shut down, Silk Road facilitated the movement of more than 9.5 million Bitcoins, equivalent to $1.2 billion at the time of the shut down. With the success of this digital currency that is now without a governing center, several federal agencies in Washington are considering ways to capitalize on the opportunity.

With the closure of Silk Road, there is potential to regulate the Bitcoin and legitimize it so users can continue to use the currency. Seeing as most of its users were previously active in the illegal Silk Road community, is it the right call for the United States government to keep the Bitcoin alive?

Source: http://www.newyorker.com/online/blogs/currency/2013/10/could-the-silk-road-closure-be-good-for-bitcoin.html

Picture: The Bitcoin

As Generation Y enters the workforce, the corporate world is being reshaped according to new values and priorities. One of these values includes social responsibility. As companies struggle to stay relevant to the consumer, it is clear that corporate social responsibility is becoming increasingly important. Companies are now beginning to incorporate the new concept of a triple bottom line (profit, people, and planet) when drafting the business model. As stated by Phillip Haid, CEO of Public Incorporated, an agency that promotes social causes through campaigns, “A for-profit company that bakes social good right into its business model and brand can be a huge differentiator and drive sales”.

The shoe company TOMS is a good example of a company that incorporates a solid product with a strong commitment to social causes. For every pair of shoes sold, the company donates a pair to the less fortunate. As of 2013, TOMS has made a positive impact in over 50 countries. This is a good business venture because it highlights how a little extra cost in social initiatives not only has a global social impact, but can lead to high sales and success as a company.

Sources:

http://www.theglobeandmail.com/report-on-business/careers/career-advice/life-at-work/good-vibes-for-social-responsibility/article14575293/

http://www.toms.com/our-movement/l#where-toms-give-shoes

Picture: For every pair of shoes sold, the company donates a pair to the less fortunate.