Monthly Archives: October 2014

Xbox One: The Monopoly in China

This comment is in response to Chin Chun (Nigel) Tsaur’s Blog post: “Xbox beats competitors to Chinese Market” (https://blogs.ubc.ca/cctsaur/)

Videogames are now a big part of the children of generation Y and even for the young adults of generation X (the time in which the videogame industry accessed the market). The games made by the different companies (Microsoft, Sony, Nintendo, being the major companies) can be violent, have sexual scenes, but they also be educational and help children learn while having fun. This is what the Chinese government realized on January and lifted the 14-year console ban law they had imposed.

As Chin Chun mentions, Microsoft has done a very strategic and beneficial move positioning as a monopoly in the videogame industry in China allowing them to have huge profits. Although I don’t agree when Chin Chun says that the lack of knowledge in consumers and the restriction on the content of games will be drawbacks because what these children want is to play videogames, it really doesn’t matter what they will buy. It was a restriction before and now they have the opportunity to use it thus, they will be driven by their emotions and will use any method to convince their parents to buy them an Xbox One.

In other words, I do not see any big drawbacks that Microsoft can have in this new market segment. Until Sony and Nintendo join the Videogame market in China, Microsoft will generate huge revenues.

china-game-console

Coca-Cola Life, the Comeback

This comment is in response to Crispin Mwanyumba’s blog comment: ‘Coca-Cola Life’ (https://blogs.ubc.ca/cmwanyumba/)

Coca Cola, the world-known soft drink company that offers more than 750 beverages just in North America; invented by the American pharmacist John Pemberton in the late 19th century and made a national icon in the U.S.A in its 50th anniversary.[i] This company does not accept defeat and this can be seen in Peru where the competing soda was ‘Inca Kola’  and surprisingly enough, this local soda was making more sales than Coca Cola. So instead of accepting this, Coca Cola decided to buy the Inca Kola trademark, which now they own all over the world except in Peru, were they are only partners of Corporacion Ina Kola Peru S.A.[ii]

Moving on, as Crispin clearly stated, “people are becoming more health conscious and consuming much healthier beverages.” Plus he also mentions the decline in the sales of soda sales. Hence, Coca Cola decided to reach these new era consumers by offering Coca-Coca life and clearly changing its brand image from red to green. I agree with Crispin when he mentions that changing its colour will make Coca Cola lose its identity and that it will be very hard for them to convince their consumers about this change. Nonetheless, the  ‘Coca Cola Life to make U.S Debut’ remarks that they have done successful launches in Argentina, Chile, Greath Britain and Mexico. Evidently, this shows that the mind of the customers can be changed and with media and publicity as strong as Coca Cola’s, anything can be possible. In addition, even though they are losing their identity, this doesn’t mean it is a bad thing because some old-fashioned consumers that aren’t as health conscious will see Coca Cola as the classic soda Red brand and on the other hand, the new era consumers will see Coca Cola as the green brand with natural sweeteners and eco-friendly label.

Crisping accurately points out that Coca Cola is entering a new niche, joining the natural drinks like juices and although there is a harsh competition of suppliers, I believe that Coca Cola will and is finding a way to smoothly enter this new market segment because first of all, Coca Cola has a very high reputation globally and buyers will trust them as Coca Cola is trying to show a new face, a new identity, a green image. To sum up, I believe that Coca Cola will boost soda sales in this new niche and that it will become one of the fearest competitors.

cocacola life

 

[i] The Top 10 Bestselling Soft Drinks – TheRichest. (n.d.). Retrieved from http://www.therichest.com/rich-list/most-popular/the-top-10-bestselling-soft-drinks/

[ii] The Coca-Cola Company and Corporacion Inca Kola Announce Global Partnership for Inca… — re> LIMA, Peru, Feb. 23 /PRNewswire/ –. (n.d.). Retrieved from http://www.prnewswire.com/news-releases/the-coca-cola-company-and-corporacion-inca-kola-announce-global-partnership-for-inca-kola-brands-75034032.html

The Rights of Indigenous People

A few weeks ago, there was a UN conference in which they were discussing the option of re-establish the protection of indigenous people and as unlikely as it seems, Canada was the only country to oppose this motion.  I believe it is unlikely because I agree with Perry Bellegarde (Chief of the Federation of Saskatchewan Indian Nations) when he said: “Canada was viewed always as a country that upheld human rights”.

Being from Peru, I can understand how and why the First Nation Indians of Canada are feeling. In Peru, the Incas were conquered by the Spanish and they took all they could from us, including lots of resources such as gold, people as slaves, etc. Hence, I believe that they (First Nation Indians) have the right to ask Canada’s government for human rights and even more, the protection of indigenous people as it was part of the Declaration.

Furthermore, as it happening in Peru, indigenous people do not trust the government or other citizens (an issue which goes both ways) so the Peruvian government has created a special division called the MIDIS (Ministerio de Desarollo e  Inclusion social – Ministry of Development and Social inclusion)  which helps our indigenous people to be incorporated into the society so that they stop being treated/viewed as inferior citizens. Something which has been successful over this few years thanks to the use of media ads, human rights campaigns and a very important matter taught in schools. So what I am trying to say is that if the Canadian government is having trouble with this matter, they could try to have a similar approach.

perry-bellegarde

Perry Bellegarde

References :

Canada Is The Only UN Member To Reject Landmark Indigenous Rights Document. (n.d.). Retrieved from http://www.huffingtonpost.ca/2014/10/02/canada-un-indigenous-rights_n_5918868.html

Retrieved from http://i.cbc.ca/1.2491784.1403835309!/fileImage/httpImage/image.jpg_gen/derivatives/16x9_460/perry-bellegarde.jpg