Response to YuWei Yan’s Post: “WHY’S IPHONE SO POPULAR AROUND THE WORLD?”

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My fellow classmate Yuwei Yan recently wrote a blog post titled “Why [Is] [the] IPhone So Popular around the World?” in which she argues that Apple’s popularity is dependent upon its brand culture as well as its “incomparable insides”. I am a hundred percent in agreement with her statement that Apple has created a popular image around its products. It currently has the standing of a “conspicuous consumption good”; one that consumers buy simply because it is expensive and because the brand holds a certain amount of prestige. However, I am doubtful that the latest iPhone is “incomparable” in terms of specs. Upon comparing this hotshot of a phone with its greatest competitor, the Samsung S5 on GSM Arena, the iPhone 6 pales in comparison. The S5 has a quad-core, 2.5 GHz CPU while the iPhone 6 only has a dual core, 1.4 GHz. The S5 has a longer battery life, a finer camera, greater internal storage space, and a memory card slot. Yet despite the clear advantages the S5 has over the iPhone 6, Apple is still able to sell its phone for more.

iPhone 6 vs Samsung Galaxy S5. From: http://www.androidpit.com/iphone-6-vs-galaxy-s5

Often times the high price misleads consumers, like Yuwei, into believing that the product is actually worth what it’s selling for. In her post, Yuwei states the iPhone has “incomparable insides” while comparing the iPhone 6 solely with its predecessor. Given the prestige and price that comes with the Apple brand, it probably never even occurred to her that there could be other phones on the market that are better in so many aspects. As a firm believer in the actual product rather than the brand name, I believe that it’s only a matter of time before Apple’s popular image becomes insufficient in hiding its inferior technology and other companies like Samsung and HTC begin to dominate the mobile phone market.

QUANT e-Sportslimousine – The Next Tesla?

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On September 16, 2014, Quant Motors’ e-Sportlimousine, a vehicle that uses an electrolyte flow-cell powered system, was certified for use on German and European roads. Using saltwater in a series of redox reactions, the “nanoflowcell technology” (ref website) allows the car to travel at speeds up to 380 km/h for a driving range of up to 600km, according to www.examiner.com. Quant is currently seeking to attract investors into their technology, and many claim it will one day challenge Tesla in the hunt for alternative energy vehicles. They certainly do share many elements of the business canvas model. In terms of design, the e-Sportlimousine is in no way lacking. With its flashy shark gill design, it can easily be considered a luxury vehicle that would appeal to a wealthy customer segment.

QUANT e-Sportslimousine, www.nexthitech.com

In terms of value proposition, it provides an alternative to gas powered cars, and boasts a more power than electric vehicles (Tesla’s top speed is 201km/h). However, the infrastructure for saltwater cells is currently not available, and if Quant was to market its vehicles to a North American market today, the technology would be marveled at but not well received. Perhaps one day in the future, it will draw enough interest to further expand and become a larger segment of the market.

External Factors Impacting an Organization’s Business Model

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The Vancouver Sun’s article “There Will Be No Pipeline” highlights the issues surround the development of Enbridge’s $7.9 million Northern Gateway pipeline on Nak’azdli territory. 14 out of 40 First Nations groups that live along the proposed route continue to oppose the building of the pipeline out of concern for the potential environmental impacts on their ancestral territory. To Enbridge, the opposition they face is considered an external factor to their business model that falls in the political category. Without the agreement of all the First Nations groups the pipeline will be affecting, Enbridge cannot commence construction without breaching their rights to their territory. Even if they do manage to convince the rest of the groups to sign on, Northern Gateway will still be viewed as a threat to the environment around it, and the traditional culture of the First Nations.

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Three Gorges Dam, Hubei Province, China. Photo from: Business Insider

The disruption in the lives of local people due to a major energy project has been encountered before, in the building of the Three Gorges Dam in Hubei, China. According to Jill Mcgivering’s article “Three Gorges’ Dam Social Impact” in the BBC News, the dam has displaced more than a million people. 1200 villages and 2 major towns have had to have been abandoned and rebuilt. Under a different political system, the displacement of people would not have affected the government’s building of the dam politically, the way intruding on First Nations’ land would have affected Enbridge, but it is still an external factor in the social category. Once thought to be an object of pride by the Chinese government, the Three Gorges Dam is now being criticized for its human costs, according to the New York Times. It is spawning environmental problems such as water pollution and severe landslides. As a result, even more people are being displaced. Although the dam is providing an alternative to air polluting coal, it is being frowned upon by critics and citizens alike for its social impact on surrounding communities.