Blog Post #7

Microsoft’s rapid expansion in Russia: “An almost perfect synergy”

Now, Russia is the fastest growing market for Microsoft’s genuine products in the entire world. The question is why is that so, since there exist many different operating systems which can enter Russian software market and gain a large share of it. The answer is the unusual and successful marketing strategy of Microsoft in 1990’s, after the fall of Soviet Union. Microsoft began spreading its software – Windows, to Russia at low or no cost for the consumers (which caused negative profit for the company), therefore populating the Russian software market with its products. In addition to that, it closed eyes on the illegal and pirated copies of Windows. As a result, after several years of such campaign, all the computers in Russia had Windows Operating System installed on them, and only few knew about the existence of other software companies, such as Apple. When the entire market was theirs, Microsoft forced stricter validity check norms in the products, which minimized the its presence in the black market, and raised the price of the product so that Microsoft would be making profit from sales. Because everyone was used to Windows and did not want to switch to another operating system, more and more people began buying the genuine copies, which led to Russia becoming one of the largest consumers of Microsoft’s operating sytem.

Word Count: 222

http://www.amchamrussia.com/200806/200806.pdf

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Blog Post #6

According to “Latest Gadgets” website, YouTube is launching a new free service – movies for free. From https://www.youtube.com/movies, the movies range from action and adventure to Bollywood, from romance to science fiction. Considering the fact that YouTube is the most famous video portal in the world, this new service will be really popular soon. Although its limitation is that it shows only the old and unpopular movies, which can affect its popularity. But according to the “Latest Gadgets”, YouTube is also considering to launch a Pay-Per-View service, which will offer one to watch the newest blockbusters on the website. Therefore, the free movie service can be considered as an effective and efficient way of promotion and testing of the new PPV idea, because the rights to show the old movies can be bought for a low price from the right-holder. It is somewhat analogous to the new service which Disneyland is offering – its visitors uploading their photos from Disneyland to the Disney-created webpage and sharing their experience with the public – the strategy which will not only promote Disneyland, but also bring the company closer to its customers.

Word Count (excluding links): 185

http://www.latestngadgets.com/youtube-to-introduce-its-free-movies-service/6803.html

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Blog Post #5

Blockbuster, a movie rental giant, closes over 800 stores after unsuccessful transformation from large stores into kiosks. And although it was a good strategy for the company to increase its profit, the product itself is not compatible with the market anymore. One of the reasons for that is that one must go to the store and rent the video manually, whereas other services exist, which offer the rent of a movie without leaving the house, such as Video-on-Demand, which is significantly more convenient. The other reason why Blockbuster failed was the free videos which can be downloaded from internet, thus creating a great threat to the costly Blockbuster rentals.
On the other hand, the expenditure of Blockbuster into kiosks would, theoretically, significantly increase the popularity of the service due to a significant number of people passing by one of the kiosks in such popular place as a shopping mall. In addition to that, the fixed cost – the rent of the space, where the sales occur, would be significantly less in a mall rather than having a separate location (kiosk is significantly smaller than a store) .
Therefore, the expenditure of Blockbuster into kiosks in 2009 can be compared to the increasing manufacturing of typing machines at the dawn of personal computers – both became useless not because of their improper management, but because of the increased competition from other products or services.

Word Count (excluding links): 231

http://www.msnbc.msn.com/id/32861720/ns/business-retail/

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Blog Post #4

According to the Ezine Arctices website (http://ezinearticles.com/?Global-Warming-is-Not-Real&id=441795 ), Global Warming is not real. The most common argument for that is that it is a part of the natural cycle of Earth, which experienced Global Warming and Global Cooling numerous times already. One of the examples to support this theory is the extinction of mammoths, which died because of the Global Warming.
I do not argue that Earth has experienced Global Warming before. The argument is to which degree the planet has experienced it, and is there a correlation between human activity and the rise of the average global temperature? The temperature began to rise with the beginning of the industrialisation, as a result of which greenhouse gasses were emitted and prevented the heat loss on our planet. Now, the degree of the effect of greenhouse gasses has grown to the extent that the polar ice caps are melting, the climate of the planet is changing, some regions of which experience draught, other – enormous amount of rainfall, and the continuously rising sea level.
I believe that the Global Warming, which the planet is experiencing now, is human induced, and humans must prevent it from spreading further, i.e. Kyoto Protocol and carbon tax.

Word Count (excluding links): 200

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Blog Post #3

Bell beats out Telus to sponsor B.C.’s 2010 Olympics

According to the article in the Globe and Mail1 , despite all of TELUS’ efforts, Bell became the official National Sponsor of the Olympic Games 2010. TELUS was the first candidate to obtaining the executive marketing rights from VANOC for a number of reasons. First one is that the Olympic Games were to be held in Vancouver – where the main telecom company was TELUS, not Bell. The second one is that TELUS has already invested significant funds in sponsoring the Olympic bid for Vancouver to become an Olympic city, which is also an important factor – without TELUS, not BELL, there wouldn’t be the Olympic Games in Vancouver at all! The reason why Bell became the National Sponsor was because it offered $200 million in sponsorship, while TELUS only offered $135 million. The most ethical and correct decision of VANOC would have been to talk to TELUS and tell them about Bell’s offer. If TELUS refused to offer the same amount, then the sponsorship rights would go to Bell; if it offered the same or higher amount, then TELUS would become the sponsor. The most important aspect for VANOC was to maintain good relationship with TELUS, which offers services through all of Western Canada, rather than go with Bell, which will come and leave, but will make TELUS unhappy.

Word Count: 218
1 (http://www.theglobeandmail.com/news/technology/bell-beats-out-telus-to-sponsor-bcs-2010-olympics/article953570/)

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Blog Post #1

According to the “Information Week”, Disney is launching a Social Media Site, where people will be able to leave their photographs and videos made in Disneyland. It is an effective and efficient way for the company to connect with the people. The only costs required for this website are for the creation and maintenance of the site, where the site management team will be able to check and censor inappropriate videos and photos, and will make decisions on what should be posted on the website. The benefit of having this site is that Disney will gain a greater with its customers. People, in general, believe more to the information provided to them by someone who is like them and already have an experience in that field (interpersonal communication) rather than to the information provided by the company, which wants the customers to acquire its product. Using this indirect person-to-person communication via photographs and home-made videos, Disneyland will gain more trust and popularity from the regular people. Creating such website is a great financial tactics to connect to the people and acquire more customers because of its efficiency and effectiveness.

Word Count (excluding links): 189

http://www.informationweek.com/news/security/privacy/showArticle.jhtml?articleID=227500627

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Blog Post #2

http://www.engadget.com/2010/09/27/rim-introduces-playbook-the-blackberry-tablet/
According to the “EnGadget”, RIM, the creator of Blackberry cell phones, is introducing the new OS Tablet – PlayBook, which is analogous to the Apple’s iPad. QNX, the company which produces the software for PlayBook and is owned by RIM, has produced software for companies ranging from the ones which provide medical service to the ones which create nuclear reactors, and thus can bring this experience into the software of the new PlayBook. And even though RIM is one year late from Apple, which produced its iPad in 2010 and is RIM’s biggest competitor, the market is still free for the new OS Tablet to come along. From the information posted on http://www.dailywireless.org/2010/09/28/rim-playbook/, the new PlayBook will have some unique specific characteristics, such as a 1GB RAM and a 5MP camera, which non of its competitors – Apple, Samsung, and Dell have, and thus can create a short-run competitive advantage for RIM. The major limitation of the PlayBook is that its selling price is not yet determined, and therefore the device cannot yet be considered iPad’s competitor. The competition for the OS Tablet market between the two giants will only begin since the release of the PlayBook in 2011.

Word Count (excluding links): 197

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