This is a comment on Sophia Park’s Blog

It was reported that a new Compass Card System will be launched, which means that passengers have to tap their card to reader machine ever time in order to make sure nobody evade fares. For the people who obey this regulation may have to wait for another 5 minutes just because of the accomplishment of this action. It is this “5 minutes” that maybe cause a person be late for an appointment. To be honest, this system will not be as effective as the policy makers predicted, for the reason that unscrupulous free riders will finally find a way to escape from paying for tickets. What’s more, government will pay extra maintenance fee for those machines and system. Where is this money come from? The answer is tax. While where are those taxes come? It is the citizens that pay taxes. The government is supposed to represent the right of public, however, the establishment of Compass Card System actually hurt their behalf.

If they government’s purpose is to increase income, I’d like to recommend Sophia’s suggestion. By budgeting their money into the improvement of Translink’s service rather than invent a Compass Card System, they can gain a higher percentage of citizens using public transit. Consequently, profits gained from public transportation will soar.

Sources:

Sophia Park’s Blog: https://blogs.ubc.ca/sophiapark/

http://bc.ctvnews.ca/translink-defends-compass-cards-despite-fare-evasion-loophole-1.1500292

No refunds or fare amnesty after Tuesday’s major Skytrain delays: Translink

American Airlines-US Airways merger was announced months ago, while American authorities prohibited this action at that time. Economists concerned about a possible occur of monopoly. It is true that the merger of two of largest airline companies definitely is a threat to their competitors. They will become significantly more competitive compared with other companies in airline field if they complete merger. Consequently, their rivals will be forced to sell tickets with some favorable terms. In this case, the party that will receive most benefits is consumer segments.

However, as a tradeoff, it is recently reported that two companied gave up a number of takeoff and land slots in order to make American justice department approve of their merger. As a result, now-freed slots can be allocated to other small companies and those companies can have more chance to make profit. This indicates a less competition among airline area in long run. Which means the ticket price maybe increase and keep stable. It is the behalf of fliers that will be harmed.

American Airlines and US Airways are predicted to finish their merger successfully in December.

Sources:

http://www.theguardian.com/business/2013/nov/12/american-us-airlines-merger-justice-department

http://abcnews.go.com/Business/biggest-winners-losers-american-air-us-airways-settlement/story?id=20877291

http://www.washingtonpost.com/local/trafficandcommuting/justice-set-to-approve-merger-of-amr-us-airways/2013/11/12/2531b9f0-4bab-11e3-9890-a1e0997fb0c0_story.html

http://wallstcheatsheet.com/stocks/do-american-airlines-and-us-airways-really-need-to-merge.html/2/

Canada Goose has launched a lawsuit against Sears, accusing that sears department sell the coats that resembles its “Kensington”. Not only the design, Sears also use similar tag and trademarks, which lead consumers to confusion.

If the selling price of Sears’ copycat coat is relatively lower than Canada Goose’s, Sears will be more competitive in market. To be honesty, everyone is inclined to the side of more benefit they can get. And the behalf of CG will be harmed when this situation occurs. Sears do not need to pay design fee, while they can earn more profit. This is not fair. The negative effects that Sears given rise to Canada Goose are far more than the current profit loss. If fake coats have any quality problems, misled customers will put the blame to Canada Goose rather than Sears. Canada Goose has high brand identification; consequently, it is the Canada Goose’s reputation that will be harmed rather than Sears’. Damaged brand name indicates large amount of potential loss in the future: lose of royal customers, reduction in sales, lose of key partners’ trust, etc. All of these will burden by Canada Goose and these are unlikely compensated.Sears copies other brands’ design, sears do not obey business ethics although they can make a great fortune.

sources:

http://www.pm.gc.ca/eng/news/2013/11/08/pm-tours-canada-goose-inc-manufacturing-facility-toronto

http://www.thestar.com/business/2013/11/08/canada_goose_sues_sears_over_parka_design.html

Third quarter’s financial statement of Tim Hortons was published and it was reported a significant rise in profit by 11%.

It may because of this impetus, Tim Hortons is seeking to expand globally. Chief executive Marc Caira announced that he plans to grow the restaurant’s operations outside the company’s home base and the US, starting first with the Middle East and then moving onto other countries.

Normally, it’s hard for new entrants to survival in competitive markets, especially markets, which are nearly, reach saturation point like café market. Fortunately, Tim Hortons has the advantages of high reputation and brand identification. However, the threat of substitutes is still strong, and customers face tradeoff when choose which café to consume. Rational buyers will bargain leverage. They will consider which coffee brand will bring them more benefits. Since the soar in Tim Hortons’ profit is mainly due to an increase in selling price and customers often inclined to buy cheaper good, Tim Hortons are supposed to come up with other tactics to attract consumers.

Recent news said Tim Hortons aim to reduce wait time, which exactly panders to customers’ wish. For example, in UBC students have to wait in line for 10 to 20 minutes, while the break between classes is extremely short. Myself have left several times with disappointment. If this problem can be fixed, the profit of Tim Hortons will be witnessed a new high. In addition, it will achieve a great success in world market.