For the first time ever, this June, the skies over the Atlantic will be crowded with WestJet Airlines Ltd. planes. The company is just dipping its toes in the European market by only offering flights to Ireland, in order to get a better understanding of the European market without risking too much investment. The decision will increase the competition on Air Canada’s Canada-to-Ireland routes, but full-blown competition with Air Canada would require wider-bodied aircraft.

While WestJet does have potential for international expansion, is this the right financial decision for the company? If the flights run under capacity it will cost WestJet hundreds of thousands of dollars, since costs from operating the plane stay the same but less revenue is being generated from ticket sales. On the other hand, by having airplanes fly to other continents, WestJet’s brand recognition will finally burst outside of the North American bubble.

In agreement with Danielle Yalouz’s comment, “If West Jet is successful, they could create a whole new name for themselves and finally compete with the other international airline companies”, it seems that many are skeptical about WestJet’s return on investment from Europe. The skepticism will be answered come June.

Imbedded Blog: https://blogs.ubc.ca/danielleyallouz/2013/11/17/should-west-jet-travel-overseas/

Source: http://www.theglobeandmail.com/report-on-business/westjet-goes-trans-atlantic-with-new-dublin-flight/article15455464/#dashboard/follows/

Source: http://www2.macleans.ca/wp-content/uploads/2009/04/090422_westjet.jpg

As a fellow ‘snap-chatter’ and in response to Keenan Manhas’ post “Snapchat Decides to Stand Alone After Rejecting Facebook’s Offer” it is safe to say that Snapchat is a far more entertaining, fresh way of connecting with friends. Facebook knows it too, and that’s why they recently tried to buy out the company, without success. As highlighted by Keenan’s blog, Facebook’s popularity is declining and in order to maintain competitive expansion is necessary. ‘Buying out’ seems to be the natural instinct for large online sites when they feel threatened by new entrants into the market, so it is no surprise that Facebook has offered billions for companies such as Vine and Instagram in the past. Huge returns on investment have been earned on buyouts, such as when Google bought Youtube, now the largest ever video sharing site.

Keenan’s blog brilliantly illustrates the competitiveness of the social media market and how a buyout can reduce that competition to an oligopoly or even a monopoly.

Embedded Blog: https://blogs.ubc.ca/keenanmanhas/2013/11/13/snapchat-decides-to-stand-alone-after-rejecting-facebooks-offer/

Source: http://graphics8.nytimes.com/images/2005/11/13/business/13buyout.583.gif

Netflix recently admitted that it analyses downloading trends in file-sharing websites to purchase the shows that will be most popular amongst its subscribers. As an example, the company purchased the series Prison Break because of its torrenting popularity, since then Prison Break is one of the most-watched shows on Netflix.

This blog draws attention to how inter-related different websites and companies can be when it comes to the internet. It seems that Netflix now depends on torrenting websites much in the same way that Facebook depends on Google to customize its advertisements. Not only is it interesting that Netflix admitted to using illegal sites for market research, but also that the company received praise from consumers on being creative. Perhaps the imbedded blog is foreshadowing a dark future on market research techniques. If companies are being supported for using illegal websites that governments have been trying to shutdown for years, then what other data-gathering techniques does the future hold?

External Blog Source: http://www2.macleans.ca/2013/10/10/pirate-raid-22/

Source: http://cdn2.mos.techradar.futurecdn.net//art/internet/VOD/Netflix/Netflix_mylist-578-80.jpg

Giant UK based retailer Tesco PLC is implementing surveillance cameras with face scanners in its gas stations to better target advertising to its customers. The cameras, which can estimate age and gender, will be installed at checkouts in 450 locations. Although it seems intrusive, the cameras cannot personally identify and the company won’t keep any of the images.

This innovative form of descriptive research could prove to be very useful to Tesco, and I would not be surprised to see them gain significant returns on their marketing investments. In knowing age and gender trends of consumers, managers will greatly reduce uncertainty in marketing decision processes. For example, the company may have previously thought that, being a gas station, no particular group was visiting more frequently. After using the technology, they may realize that young males are their target market and physically rearrange/restock the products in their stores, increasing revenue. As technology becomes increasingly more sophisticated, it’s inevitable that the rate of new marketing strategies will increase, pushing the personally boundaries of consumers. In a few years time, face scanners may be the norm, and then what will businesses try to analyze, consumer personalities?

Source: http://www.theglobeandmail.com/report-on-business/industry-news/marketing/tesco-rolls-out-face-scanners-to-deliver-targeted-ads/article15243513/#dashboard/follows/

Source: http://blog.seattlepi.com/thebigblog/files/library/camera_head.jpg

Many are underestimating the fact that smart machines could replace millions of middle-class jobs in the coming decades. One of the main factors behind the slow job recovery of the 2008 recession is that a growing number of robots have been replacing potential jobs. In fact, analysis shows that computers could replace 45 percent of American jobs within the next twenty years. Some studies show that the issue is current while others argue it is negligible until the distant future, regardless though all studies agree that robots will eventually make a widespread and deep impact on the North American job market.

But will it make financial sense for managers to invest in capital rather than labour? If the cost of capital is significantly lower than labour, chances are this idea is very probable. Capital is a much more reliable and efficient means of production, managers don’t have to deal with absenteeism, tardiness, “coffee breaks” or using incentives to motivate employees to their full productivity potential. In addition, managers could vastly reduce their variable costs by investing more on electricity instead of having to pay wages.

Source: http://www.cbc.ca/news/business/are-robotic-smart-machines-behind-the-jobless-recovery-1.2326104

Source: http://www.cooltanarts.org.uk/wp-content/uploads/2013/10/robot.jpg

What better opportunity for brand recognition and association then the Olympic Games? Samsung Canada, the global marketing partner of the International Olympic Committee and the Canadian Olympic Committee Sponsor, revealed its clever marketing plan for the Sochi Olympic Games this winter. The smartphone promoting plan entails the slogan “Bring it Home” and a contest to send Canadians to Sochi as “mobilers” who will keep the nation updated on current events with statuses, photos and blogs. The company will also launch a tour called “Notes from Home” that will exclusively allow Galaxy smartphone and tablet users to send messages to athletes. As for the sponsorship of athletes? Steven Stamkos and Hayley Wickenheiser, arguably the current two most popular hockey athletes, top the list. Many companies have sponsored the games though, what point of difference does Samsung have to offer? The fortuity for consumers to win the contest will draw attention to Samsung’s Galaxy product line months before the Games even begin. Extra media attention will revolve around the fact that one lucky “Average Joe”, not your usual broadcaster, gets to captivate the nation with Olympic updates, all from a Samsung Galaxy product.

Source: http://www.theglobeandmail.com/report-on-business/industry-news/marketing/samsung-announces-marketing-plans-for-sochi-winter-games/article14975823/?cmpid=rss1&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+TheGlobeAndMail-Front+%28The+Globe+and+Mail+-+Latest+News%29#dashboard/follows/

Source: http://popsop.com/wp-content/uploads/samsung_olympics_bloggers_01.jpg

One can only imagine the criticism Rogers will receive as it launches a new direct marketing service called “Rogers Alerts”.  National retailers have signed on with Rogers to pay to know when people are near their store, and send text messages with promotions encouraging them to shop there. This mobile marketing is the first of its kind in North America, so at least Rogers has given customers the choice of opting-in to receive the messages. Surprisingly enough, several thousand customers have already agreed to receive the texts, but do the rest of Rogers customer base like the idea? Has marketing become more intrusive than ever? Consumers are constantly being bombarded with advertisements, and only accept what is true to prior knowledge. Do companies really expect these texts, which aren’t customized and are sent based off location, not to be filtered out of the consumers mind? Emails and mailboxes are constantly sent junk because they are easily accessed, where as cell phones are one of the only communication tools that have been left private. There is a good chance that consumers are not ready to give that up. How long before opting-in is replaced by having to opt-out for Rogers customers?

Source: http://www.theglobeandmail.com/report-on-business/industry-news/marketing/rogers-to-offer-promotional-ads-by-text/article14646004/#dashboard/follows/

Source: http://cdn.iphoneincanada.ca/wp-content/uploads/2010/09/rogers-hutz.png

Steeped Tea is a Canadian company that sells a growing line of tea products through consultants who hold home tea parties across Canada and recently the US. The companies direct sales business model was successfully pitched on the popular TV series Dragons Den, it has since grown over three hundred percent. The company now has over 3,000 consultants in Canada promoting and selling tea products, while another 200 consultants have started working in the US after a risky decision to expand into the American market.

The driving force behind Steeped Tea’s success is the direct business sales model. By having consultants sell directly through host tea parties, the company has an absolute cost advantage over competitors who normally sell to grocery retail chains. Not only do the tea parties cut costs, it allows the hostess’ to form relationships with customers who provide feedback about the teas. Since expansion decisions are made off this customer feedback, Steeped Tea has grown profits from expanding to new products by better satisfying its customers.

Source: http://www.thespec.com/news-story/4142683-dragons-fired-up-over-company-s-success/

Source:http://www.mommylicious.ca/sites/default/files/content/images/steeped%20logo.jpg

The steep fall of Blackberry out of the smart-phone industry has not lacked media coverage since the 2008 stock market crash and the overwhelming popularity of Apple’s iPhone brand. Media has kept consumers updated that Blackberry’s stock value is plummeting and job layoffs are inevitable. Blackberry’s failure came from a combination of missed opportunities, lack of innovation and the disastrous decision to launch the Z10, the company’s first non-keyboard product that was massively unsold and recently caused a $965-million quarter loss.

Personally, I don’t think it was a bad choice for Blackberry to release the Z10 phone, although the timing of the Z10’s release could not have been worse. Blackberry should have started brainstorming touch screen designs as soon as they started feeling market share pressure from iPhone and Samsung. Although its an expensive and risky investment for companies to expand their product lines, the competitive advantage Blackberry could have attained by expanding their customer base with phone varieties would have outweighed the heavy investment. Blackberry spent too much valuable time improving the Z10 that by the time it was released in 2013 both Samsung and Apple had already become rooted leaders in their positions, so another touchphone didn’t appeal to consumers.

Source: http://www.theglobeandmail.com/report-on-business/the-inside-story-of-why-blackberry-is-failing/article14563602/?page=all#dashboard/follows/

Source: http://cdn-static.cnet.co.uk/i/c/blg/cat/mobiles/blackberry-broken.jpg

Montreal Maine and Atlantic Railway, the company responsible for the Quebec railway explosion on July 6^th that killed 47 people, has found itself in an even deeper hole after investigators realized that the explosive fuel causing the disaster was not properly labeled. One can only imagine the liabilities MMAR is facing. Not only is the company bankrupt from the disaster, it must repay millions to creditors and victims, reach court approvals for lawyers and loans, and handle the repercussions of a deadly mistake that could abolish their reputation.

So how does CEO Ed Burkhardt handle a situation like this? It would be easy for him to admit that, in all truth, management isn’t directly responsible and the rail engineers made the mistakes that caused the tragedy. But with public relations, it is crucial that management step up to the plate and accept full responsibility for their company’s actions. It’s advised that Ed Burkhardt publicly admits MMAR failed to follow rail guidelines and identify a weak employee in their system. After public apologies, MMAR should seek financial support from VIA Rail Canada and find approval to sell out the company so that all stakeholders involved in the disaster will be compensated.

Source: http://www.ctvnews.ca/polopoly_fs/1.1359989!/httpImage/image.jpg_gen/derivatives/landscape_960/image.jpg

Source: http://ca.reuters.com/article/topNews/idCABRE98A0MP20130911?pageNumber=2&virtualBrandChannel=0