Wal-Mart’s success in China

As China is a country with huge population, Wal-Mart is willing to win more profits. Actually, as a Chinese, I think it does succeed. There are several reasons I can think of that leads Wal-Mart to success.

First, the target market is clear and the price is relatively low. Wal-Mart focuses on consumers in middle class and lower, which takes up a great percentage of total Chinese. Because of relatively low prices of goods, people can afford them.

Also, the locations of Wal-Mart in China are mostly distributed near neighborhood units. Therefore, people can get the goods they want conveniently.

Apart from that, since Chinese cook almost every day thus the food resources require being fresh. Wal-Mart provides fresh food materials and it wins the fond of Chinese.

Haagen-Dazs, luxury in China?

In China, Haagen-Dazs is treated as a luxury brand that it costs people approximately $14 (84RMB) for 500ml in China, while, in Canada, it only costs $4.99, which is 35RMB after tax. Why is that happened?

I notice that, Haagen-Dazs, in China, mostly is sold in storefronts. However, in Canada, I just found out that it is sold in convenience store. Therefore, the business models of Haagen-Dazs in China and Canada are different that it is serves as high-end products in China and fast products in Canada.

Haagen-Dazs are located in prosperous area in China and it pricing highly so that it makes consumers feel that eating Haagen-Dazs can show their social status. Therefore, vanity from people helps it to promote sales of Haagen-Dazs in China.

From the analysis, I figure out that firm using different models in different countries can lead to  great sales as well.

Recession of Blackberry

Before the year of 2007, BlackBerry was hot in the area of technology. CrackBerry used blackberry to check emails, send messages, surf the Internet constantly. However, things have changed after Apple published iPhone. People are addicted to iPhone for its brand new system and Apps. Since the year of 2012, Apple has become the dominator in the market of smart phone. People, who were once consumers of BlackBerry, are no longer attracted by Blackberry, which leads to a considerable decline of sales of Blackberry.                                                     BlackBerry logo

In order to retrieve the situation and appeal to more investors and consumers, BlackBerry optimized its new operation system, changed the company name from RIM into BlackBerry and published Q10 and Z10 on January 2013, while, BlackBerry delayed the publish and missed the best time, the sales were significantly low, which made the shares dropped sharply.

I think the major problem of BlackBerry is that it does not have a prompt reaction to the market. When it publishes its newest product, people have already been fascinated by products from other phone company.

The future of BlackBerry is vague. The leaders of the firm must modify its plan as soon as possible or the situation will be worse.