Month: October 2010

Albert Einstein said: ” The compound interest is the greatest inventions in the 20^th.” According to the article “Beaten by Buffett”,Shareholders in Warren Buffett’s Berkshire Hathaway have seen annualized gains of 20% for the past 45 years. If $10000 was invested by Buffett on October 1^st of 1964, the investment  would today be worth $80 million. In the calculation formula of compound rate, the “n” is the key to the answer. Buffett’s investment is always long-term. He’s willing to buy a company and holding it for many years and even now with all his success. Buffett’s investment of every stock is never less than eight years.  Buffett has another investment rules: “Be cheap; Be patient; Go against conventional wisdom” (when others are greedy you will be to be fearful and when others are fearful you will be greedy). If we fully understand the power of ‏compound interest, we can invest well. However, we should understand it is hard to do.

http://marketwatch.com

In a warehouse of San Francisco，Steve Jobs, together with the finder of Apple, worked together to created the Apple products.He did that when he was 22-year-old. Apple is of value more than two thousand million dollars and it is ranked No.1 technology company in the world.This is the power of Innovation.Two Chinese brothers, Pan Yong and Pan Yong, who worked in a warehouse at Shenzhen. They created the Apple Peel 520. The Apple Peel 520 is a device that adds voice and text messaging capabilities to the iPod Touch. This is another example of innovation. Due to the fact that iPhone has exceeded to sell over 2.75 hundred million, the product’s market prospect is very broad. In Chinese black market the Apple Peel 520 just sells 50 dollars,(US $) so the price of an iPod touch adds an Apple Peel is just half of an IPhone. The couple brothers said they will apply for a patent as soon as possible. The “Patent Pending” products are already selling by the GoSolarUSA company in USA market. This is a big challenge to Apple iPhone. Therefore, we must learn how to innovate, dares to innovate.

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

Market Orientation of product is methodology or philosophy about business, that focuses on identifying and meeting the need of the existing customers or the hidden of potential customers.

producers need to be considering about the market positioning:

1. The target consumers of your products.

2. The competitor’s products.

3. How the product’s market prospect.

4. How the products can be quickly expanded reproduction.

5. The production technology of product is not easy to imitate by the competitors.

6. Whether your products have better brand awareness and image.

The producers compared their products with other competitor’s products at:

1. What is the competition advantage of your products.

2. Your advantage of your products is better than the competitor.

3. Whether your products can meet the needs of the consumers.

4. Your products are more attractive to consumers.

On the other hand, an over-emphasis on focuses on existing products and market needs can also have significant drawbacks. The major drawback is that you may lose focuses on innovation and lose focus on longer-term strategic planning. The successful market orientation is to balance the focuses on identifying and meeting the need of customer with a long-term strategic perspective.

http://www.easy-marketing-strategies.com/market-orientation.html