As a music fan, understanding how the music industry works has always interested me. This article from the Globe and Mail discusses the affects of online music streaming on the revenues of artists.

Though technology has allowed for a greater distribution of an artist’s music around the world, it has also brought many issues as well such as illegal downloading and file sharing. For an artist, this is a huge problem if consumers have free access to their music. Online streaming sites such as Pandora, Rhapsody, Spotify, and Rdio have appeared in response as a way for customers to listen to music without actually purchasing it. For each stream, artists receive small amounts of royalties paid directly to them. However, just this week Pandora is lobbying for the “Internet Radio Fairness Act” to be passed, which would cut artist royalties by 85%. For many struggling artists, this is a significant drop in revenue.

In this digital age, more and more people have been turning to online streaming as a legal alternative to purchasing music. Even so, online streaming has not been a fool proof solution as the music industry is still losing out on an incredible amount of money from the millions of people who continue to obtain their music illegally.

Article: In online streaming, artists see their revenue trickle

I’ve seen Car2Go everywhere around campus but never had the chance to check out the company. After seeing Carly’s blog post about Car2Go, I wanted to learn more about the company and what it stands for.

Car2Go is trying to make renting cars more simple and convenient by letting customers just hop in, drive, and then park. By using low-emission and energy-efficient cars, Car2Go is also helping the environment. Their goal is to take more and more privately-owned cars off the road as people begin switching to use their services. As Carly noted, Car2Go is a great example of how a company is sustainable and displays corporate social responsibility, which is a topic we covered in class.

However, not everyone is happy with this new company. According to this article, complaints have arisen from people in Calgary who are annoyed with Car2Go’s preferential parking. In addition, Car2Go vehicles have been taking up limited parking spots in residential areas and residents are not pleased about it. As Car2Go continues to expand and its fleet of vehicles grows, it appears this problem will persist. Car2Go will need to find a way to continue letting customers have convenience while trying to avoid irritating the residents of the city.

The popularity of smartphones has been exponentially rising within the last few years and its end is nowhere in sight either as new technology is constantly being developed. We can now listen to music, take pictures and videos, access internet, and use a GPS all on one device. Are these phones soon going to be taking over our wallets as well? Certainly seems like it.

In a recent poll done by CIBC, 47% of Canadians would consider using their smartphones as credit cards. Many people already use their smartphones for online banking so it seems like using phones as credit cards is the logical next step. One simple scan of your phone and your purchase goes through. Easy as that!

Starbucks is an early leader when it comes to using smartphones to make purchases. Customers can load money onto their mobile Starbucks card and automatically pay for their drinks by scanning their phone – while earning reward stars at the same time. With the way technology is changing, maybe next time you forget your wallet at home it won’t even matter!

Article: Canadians ready to use smartphones like credit cards

With the recent release of Apple’s iPhone 5, the fight between Samsung and Apple is not ceasing anytime soon. Samsung decided it was time to revive their famous “Next big thing is already here” marketing campaign and I recently caught the latest commercial on TV. As an Apple user, I still love the commercial, which I find extremely witty.

This commercial relates back to our lecture on positioning as a part of marketing. Samsung is doing what the QuickMBA article refers to as “repositioning the competition”. The tight competition between the Samsung Galaxy and iPhone makes it perfect for Samsung to air this commercial as a way for consumers to consider the iPhone in a different way. In the commercial, the many Apple customers are made to look ridiculous for spending countless hours lining up for the new iPhone when the supposedly better Galaxy S3 is “already here”. Even if you’re not a Samsung fan, I’m sure you will be able to appreciate this amusing commercial.

After being fascinated by the corporate culture of Zappos, I wanted to learn more about other companies who use their culture as a competitive advantage. I came across Southwest Airlines and an article discussing the airline’s focus on developing a thriving organizational culture.

Southwest Airlines CFO, Laura Wright, is quoted in an article saying:

You must take time to celebrate and recognize employees if you want to keep them engaged and productive.

This is the reasoning behind Southwest’s fun and engaging work environment, which includes events such as costume parties and “Finance Olympics”. Southwest even has a specialized “culture keeper” department that helps to maintain its unique culture. In an industry where customer satisfaction is key, Southwest Airlines first targets its own employees. Employees who are happy will be motivated to keep customers happy as well, and even go the extra mile to help them. As a customer, the service I am given is definitely a major factor for me in deciding whether I want to go back to the company or not.

When considering the profitability of a company, corporate culture is probably not the first thing that comes to mind. However, customer satisfaction and employee turnover rate are both directly related to a company’s culture. Companies such as Southwest Airlines are proof of what a developed culture can do for success.

Article: Pushing 40, Southwest is still playing a rebel

Today’s lecture about social enterprises definitely widened my perspective about the business world. I never really thought about the significant impact companies can have in creating revolutionary social change, whether it be on the small scale or large scale.

I was reminded of a local social venture near my home in Surrey. Price Pro is a retail store in the Newton area that opened a few years ago in 2009. Its founder, John Volken, was the former CEO of the successful United Furniture Warehouse before becoming a social entrepreneur. Price Pro’s slogan is “Save Money, Change Lives” and that’s exactly what it’s dedicated to do. Men and women who struggle with addiction and find themselves in and out of jail are given the opportunity to work at Price Pro. By working at the retail store, Volken teaches these men and women skills they would otherwise not receive, and helps to rehabilitate them from their addictions.

One employee sums up his experience at Price Pro by saying:

Here, you don’t get fired if you lose your temper.

It’s inspiring to see the type of social change capable by social entrepreneurs. As I pursue my degree in business, social entrepreneurship is something I will be keeping in the back of my mind.

Article: Newton store strives to change lives

As a fan of frozen yogurt, Joanna Huang’s blog post about a new brand called Yogurty’s Froyo caught my eye. Recently, the market for frozen yogurt has become more and more competitive as the popularity for the ice cream alternative has spiked. With an increased concern for healthy living, as well as endorsement from celebrity sightings such as Justin Bieber and Britney Spears, frozen yogurt has become a new trend.

As noted by Joanna, I think it’s a great idea for the company behind the original Yogen Fruz to come up with a new brand as a fresh start in today’s competitive market. Yogurty’s Froyo will be able to keep up with the new “self-serve” model set by other yogurt shops. With regards to brand positioning, Yogurty’s must establish itself not just as another frozen yogurt shop, but it must distinguish itself from other leading brands. Currently, with frozen yogurt still on the rise, there is yet to be a clear brand leader. Pinkberry, Menchie’s, Qoola, and now Yogurty’s Froyo are all very similar and are all fighting for the top brand position in the consumer’s mind. Which one will come out on top? It’s going to be a fierce battle.

While reading up about market research, I stumbled upon a blog article by Jessica Vascellaro of the Wallstreet Journal concerning Apple and its stance on market research. A few years ago, former head of Apple, Steve Jobs, was famously quoted:

We do no market research. We don’t hire consultants…

But recently, during the ongoing Apple vs. Samsung patent lawsuit, a document titled “Apple Market Research & Analysis, May 2011” was discovered. It seems as if the circulating story about Apple not doing market research is just a myth after all.

Steve Jobs must have either hated conducting market research, which is why he never admitted to it, or Apple felt it was necessary to keep its details a hidden secret. The latter makes more sense to me. Each company will probably have differing views about the appropriateness and the extent of market research, but in the end, results could be very valuable. Even companies who are against it could benefit from asking consumers the right questions. The fact that one of the most successful companies, Apple, does indeed carry out market research should be an indicator on how vital the tool really is.

Link to blog: here

The end has come for one of Canada’s largest discount department stores. It was announced last year that American company, Target, would be expanding into Canada by taking over the Canadian Zellers. But what does this mean for Canada?

Canadian department stores have the difficult task of competing against dominating American retailers. With the emergence of mega companies like Walmart and Costco, Zellers has been slowly fading into the background. Department stores are popular in the United States, with each one finding its specific niche to fit into. It is a different situation in Canada where it seems like department stores are losing their popularity and Zellers’ failure is in part due to its lack of points of difference which separate them when compared to other retailers. Its target is the mid to lower income demographic however other companies, such as Sears and Walmart, have slowly but surely taken over Zellers’ position.

With Target now entering the Canadian market in the near future, it is still unclear how successful it will be. Will Target be able to fiercely compete in a way Zellers was not able to? Only time will tell.

Article: With a healthy dose of humour, Zellers says goodbye

When it comes to advertising, how far is too far? Bic Canada recently faced public outcry after airing a controversial commercial as part of their back-to-school campaign. The TV ad, which can be seen here, was set in an Asian prison and was criticized for being discriminatory. Almost immediately following the commercial’s first airing, Bic was bombarded by offended viewers. This latest controversy raises the issue of marketing ethics and offensive advertising. Humour has always been an effective marketing tool and it is widely used by many companies in their advertising campaigns. But what if the humour is at the expense of others? Where is the line drawn between funny and offensive?

Racy commercials are amusing and will leave a lasting impression on the viewer, especially if it’s well done. However, if the ad discriminates against any particular social group, there is bound to be public criticism. Offensive advertising is no new issue and there have been other protests most recently against Nivea and Groupon. Concerning this ethical issue companies must make a decision: Is it worth sacrificing political correctness for a provocative ad?

Article: Bic Canada withdraws TV ad, apologizes