Innovation means a new idea, device or process. It is innovation that keeps improving the quality of human life. Within this broad concept, there is another specific term which describes a process by which a product or service takes root initially in simple applications at the bottom of a market. Then, it relentlessly moves up market, eventually displacing established competitors. This isdisruptive innovation, a term   coined by Clayton Christensen.

Naturally, I associate this term with The Apple Watch, which will be released in 2015. I think it as an example of disruptive innovation, and my analysis tells me it has huge market potential. Accordingly, it can be superbly profitable. Why? Here are my reasons:

(Image from Geogle.com )

Firstly, compared to the existing high-end watches, such as Breguet, the price of the iwatch is far cheaper, which is estimated around $ 350. In spite of charging a lower price to their target customers at the bottom of the market, Apple will achieve great profitability by increasing the sales of its product.

Secondly, compared with other smart watches, for instance, Samsung Gear series. The Apple Watch has some competitive advantages. For example, it has “ Digital Touch”, which allows you to send messages to loved ones who also wear Apple Watches. It is not only a function but also a brilliant marketing strategy that can encourage people to buy the iwatches. The strategy is also the same rationale behind the idea of Messages to iphone. In addition, the Apple Watch supports NFC payments providing paying convenience to consumers.All in all, the disruptor is Apple Watch. In constast, the disruptees are traditional watches. Will Apple Watch eventually displace the established competitors? Let’s see!

Sources:

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

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

http://www.claytonchristensen.com/key-concepts/

http://www.breguet.com/

http://www.apple.com/ca/watch/

http://www.gizmag.com/apple-watch-vs-samsung-gear-s/33960/

Linked with Loren Steffy’s blog: http://www.forbes.com/sites/lorensteffy/

“ Saudi Arabia’s announcement declared that it had no plans to slow production.”

As we know, Saudi Arabia is the largest crude oil producer in the world. It means Saudi Arabia has the power to manipulate, or say, at least influence the world oil price (After all, there are competitors such as other OPEC producers). If Saudi Arabia doesn’t reduce its production, then the supply of oil will not go down. The final result is the present situation where supply exceeds demand won’t be changed, thus, the decrease in the oil price.

“ The Saudis appear willing to allow prices to keep sliding, because they can still gain profits from oil at as little as $30 a barrel, at the same time, to grab a larger share of the global market.”

Thanks to the Saudis’ inherently competitive advantage, specifically, the access to high-grade natural resources and the low cost production structure.

His blogs attracts me because recently the world oil price has been the hot topic, and he explains what he thinks very clearly. Even people like me who barely know any about oil can get his points.

Sources:

http://www.forbes.com/sites/lorensteffy/2014/10/30/falling-crude-prices-reveal-the-flaw-of-energy-independence/

http://www.forbes.com/sites/lorensteffy/2014/10/16/cheap-oil-the-kingdom-strikes-back/

http://www.forbes.com/sites/lorensteffy/2014/11/04/oil-below-80-the-first-shoes-drop/

Image:

http://www.google.com

Aboriginal society is an essential external element to the commercial development in Canada. On the one hand, it can promote Canada’s economics prosperously, on the other hand, it can also hold back the pace of its development, what’s worse, it may lead to awful social problems beyond the economic area if something goes wrong in the relationship between two parties, which may even stop the development. As a result, in either way, this issue can’t be ignored, and the government should take it seriously and strategically.

If two sides can eventually agree on a treaty after further talks, it will mean that a vast number of resources can be exploited, such as, land, mining and fossil oil.Those raw materials are the perquisites to the growth of the national economics.What’s more, it will mean short-distance transportation expenses, lower taxes, self-contained convenience and so on(compared with import).In a word, it means lower cost.If we take one step further logically, it can mean higher profits.

But, the government’s responsibility is not only to care about the economics, it should focus on the whole society including Aboriginal society. In this way, the talks between two sides should include the topics like that how to protect the rights of Aboriginal people, how to improve their communities and so on and so forth. Also, only in this way, an agreement can be reached.

Sources:
http://www.vancouversun.com/life/Premier+urges+cooperation+more+litigation+government+natives+reach+fork+road/10194776/story.html
http://www.vancouversun.com/news/First+Nation+chiefs+stage+Site+showdown/10215965/story.html
http://www.cbc.ca/news/canada/background-the-indian-act-1.1056988
http://www.vancouversun.com/news/metro/Unilateral+park+declared+Tsilhqot+includes+Prosperity+mine/10192766/story.html