Harryson Hu's Blog

In a bold move, Snapchat recently rejected Facebook’s $3 billion all-cash acquisition offer and also stated that it will not consider any acquisitions or investments until next year. Despite not making any profit, Snapchat co-founder and CEO, Evan Spiegel, is holding out for even higher valuations next year, when he expects the number of users to increase. However, Spiegel is taking a big risk betting that Snapchat will become more valuable. Groupon, a mobile app for businesses to offer coupons to customers, turned down a $6 billion offer by Google in 2011; now, the company’s stock price is sliding, and is worth less than $3 billion.

By offering this enormous sum of money, Facebook deems Snapchat to be a threat to the social networking site. As mentioned in David Zhang’s blog post, “Move Aside Facebook”, many users have turned to other media sharing apps such as Vine, WeChat, WhatsApp in lieu of Facebook. For Facebook to remain atop social media, Zuckerberg should not be too concerned with these other smaller media-sharing apps. They should instead stay focussed on strengthening their own business model and revenue streams. If Facebook can further expand its online empire, then it would have the power to buy out any media-sharing app and prevent any serious threats to their company.

(Courtesy of smartinsights.com)

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(Courtesy of zdnet.com)

CNN Analysis on Snapchat’s Rejection  (Courtesy of CNN)

https://www.youtube.com/watch?v=z32kACU21CM

Sources:

Brustein, Joshua. “Snapchat’s $3 Billion Rejection and the Great Facebook                                               Unbundling.”BloombergBusinessweek. BloombergBusinessweek, 13 Nov. 2013.                     Web. 14 Nov. 2013. <http://www.businessweek.com/articles/2013-11-                                 13/snapchats-3-billion-rejection-and-the-great-facebook-unbundling#r=read>.

Zhang, David. “Move Aside Facebook.” David Zhang’s Blog. UBC Blogs, 13 Nov. 2013.                        Web. 15 Nov. 2013. <https://blogs.ubc.ca/zhangatan/>.

Google has recently spent millions of dollars encrypting the information flowing through its data centres worldwide. Other tech giants such as Facebook and Twitter are planning similar encryption measures to prevent intruders from snooping around and gathering data. Since the NSA surveillance scandal surfaced in June, these major tech corporations have sped up the project timelines to encrypt their own internal systems.

They could be watching you right now.
(Courtesy of zazzle.com)

Google, Facebook and Twitter are essentially covering their own behinds because their entire business model relies on consumers using the website. Consumers must feel that they are storing their data and personal information in a secure server and it cannot be easily obtained by the government or a stranger from across the ocean. While corporations can encrypt online data to a certain extent, the best line of defence is still our decisions. Websites such as Google, Facebook and Twitter store consumer data to generate relevant advertisements; it really does not matter how heavily the information is encrypted, internet hackers around the world are bound to find a loop. That is it hacker’s job. Just as the saying goes that “rules are meant to be broken”, any encryption put onto information that is on the web can be circumvented. The best line of defence for us is to simply choose to not put any information onto the internet.

Sources:

Gidda, Mirren. “Edward Snowden and the NSA Files – Timeline.” Theguardian. The                                Guardian, 26 July 2013. Web. 01 Nov. 2013.

Miller, Claire Cain. “Angry Over U.S. Surveillance, Tech Giants Bolster Defenses.” The                            New York Times. The New York Times, 31 Oct. 2013. Web. 1 Nov. 2013.

After reading this post from Chris Brogan, CEO of Human Business Works, I can definitely understand and agree with his statement of “a response is marketing”. However, I believe that statement can be thought of more as a two way street. In one way, a marketer values consumer responsiveness very highly. An advertisement is considered successful if consumers see the ad and respond by either purchasing the product, or clicking into the ad, if it is found on the internet. Going the other way, as mentioned in Chris’ post, responding is taking the opportunity to market one’s self. When a person responds to an inquiry, such as at a networking event, or a job fair, that person is seizing the opportunity to market him/herself to a future employer, or to establish valuable connections that may come in handy down the road.

Making yourself available to others is vital.
(Courtesy of aaymarketing.com)

Announce yourself to the world!
(Courtesy of animcareerpro.com)

Another point that Chris brings up is that responding is a form of courtesy as well. Providing a follow-up by responding is showing the other person that you acknowledge their presence and that you respect them. Of course, not everyone, including myself, responds to everything that we see or hear daily. But after reading this post from Chris Brogan, we should become more aware and seize the subtle opportunities to market ourselves.

Sources:

Brogan, Chris. “A Response Is Marketing.” Chrisbrogan.com. Chris Brogan, 29 Oct. 2013.                 Web. 08 Nov. 2013.

While the rapid urbanization of China may seem impressive from the outside, a little digging into these newly transformed cities proves otherwise. A 4-page article from The New York Times, probing the city of Huaming China, reveals the “ghettoization” of China’s new towns. Rural life in China is disappearing; countryside farmers are under heavy pressure from the communist government to move into these newly urbanized cities. Farmers resist the move, because the majority of these new cities has dozens of internal issues. The apartments are poorly constructed, unemployment rates are high and living costs are much higher compared to the countryside.

I believe the government is implementing these changes too rapidly without thinking about the consequences. At this point, they only care about portraying an image of modernization to boast about on the world stage. Instead,  the government needs to plan out the changes and offer incentives for citizens to move into these cities. They need to create more meaningful jobs within those cities and provide training programs for the farmers, many of whom are uneducated. Although such careful planning will take longer, it will pay off in the long run.  If China continues on this destructive path of building, building, building – with many of these cities ending up as ghost towns – then it will become a monumental task for China to reverse this in the future.

China’s Ghost Cities
(Courtesy of 60 Minutes)

Courtesy of SBS Dateline

Sources:

Badkar, Mamta. “2 Years After That Famous Report On Chinese Ghost Cities, Things                        Might Be Getting Even Worse.” Business Insider. Business Insider, 19 Sept. 2013.                Web. 10 Nov. 2013. <http://www.businessinsider.com/revisiting-chinas-ghost-                    cities-2013-9>.

Johnson, Ian. “New China Cities: Shoddy Homes, Broken Hope.” The New York Times.                     The New York Times, 9 Nov. 2013. Web. 10 Nov. 2013.                                                               <http://www.nytimes.com/2013/11/10/world/asia/new-china-cities-shoddy-                     homes-broken-hope.html?pagewanted=1&ref=international>.

Despite the imminent danger of working in a garment factory, workers, mostly women, in Bangladesh are still entering the industry in droves. According to The Economist, Bangladesh’s clothing industry is booming; the value of exports continues to grow, and Bangladesh has twice the amount of factories that Indonesia and Vietnam have. It will remain as Asia’s primary base for clothing production because of dirt-cheap labour costs and clothes sewn there has the advantage of duty-free access to Europe.

The blame of operating of these garment factories at such hazardous conditions should not be placed solely on fashion companies. Consumers should bear a burden of the blame because we are the ones that create demand for cheap clothes. In addition, a trend among consumers that has been observed in recent decades, “fast fashion”, has tremendous ripple effects throughout the industry.  Because we are always buying new clothes, and trying to “stay in the loop” in the fashion world, we create an enormous demand for cheap garments. To meet that demand, clothing companies have to produce clothes at the lowest cost, and in the shortest period of time to meet the fashion trend. In that way, manufacturers inevitably have to cut corners in the form of dirt-cheap wages, and run factories that do not meet safety standards.

Fast fashion and our demand for cheap clothing                                                                              is a trigger for these tragedies

Sources:

“Bursting at the Seams.” Editorial. The Economist 26 Oct. 2013: n. pag. The Economist.                      The Economist, 26 Oct. 2013. Web. 27 Oct. 2013.                                                                          <http://www.economist.com/news/business/21588393-workers-continue-die-                      unsafe-factories-industry-keeps-booming-bursting-seams>.

It turns out that Wal-Mart cannot be successful everywhere it sets up shop. While Wal-Mart dominates the American market, the biggest retailer in the world does not have stores in Germany, India, South Korea and Russia. American marketing strategies simply did not work on people from different cultures; German men did not like the way female clerks smiled at them, and the South Koreans were more interested in food and beverages rather than Wal-Mart’s wide selection of everything.

Coming from an Asian background, I can understand Wal-Mart’s difficulty in tapping into the Asian and European market. In Asia, consumers are used to purchasing groceries and other goods locally, and they are often cheaper and more accessible for those who do not own a car. The same can be applied to Germany; Germans can purchase food at German discount chains for cheaper prices than at Wal-Mart.  Wal-Mart’s success in foreign markets is simply limited by the culture of the country.

After reading Michelle Wong’s post about Wal-Mart’s expansion into e-commerce, I agree that Wal-Mart would be successful in e-commerce, and they should focus on expanding that instead of their unsuccessful international operations. If Wal-Mart conducted extensive research into consumer behaviour and preferences through surveys, I believe that online shopping would be a very popular option among consumers, and that number will only continue to grow.

David vs. Goliath

Sources:

Berfield, Susan. “Where Wal-Mart Isn’t: Four Countries the Retailer Can’t                                           Conquer.”BloombergBusinessweek. Companies & Industries, 10 Oct. 2013. Web. 11             Oct. 2013. <http://www.businessweek.com/articles/2013-10-10/where-walmart-i             isnt-four-countries-the-retailer-cant-conquer>.

Landler, Mark, and Michael Barbaro. “INTERNATIONAL BUSINESS; No, Not                                 Always.”The New York Times. World Business, 02 Aug. 2006. Web. 11 Oct. 2013.             <http://www.nytimes.com/2006/08/02/business/worldbusiness/02walmart.html?             pagewanted=all>.

Wong, Michelle. “One Stop Shop: Without Leaving Your House.” UBC Blogs. 15 October                   2013. Web. 26 October 2013 <https://blogs.ubc.ca/michellewong95/>.

With the release of the 2014 CLA compact sedan, Mercedes-Benz has broken into new ground by offering a luxury car with a starting price under $30,000.  While Mercedes is worried that a cheaper model would put a blemish on its prestigious brand, the German automaker is betting the risk is worth the reward.

With the CLA, Mercedes is able to increase its consumer base by specifically targeting younger, less affluent consumers. Mercedes is creating brand loyalty among them, in hopes that consumers will switch to a higher end car as they move up the job ladder.

Sales for Mercedes has risen 6.7% during September, and they are bound to increase even more because they are building their brand image by forging relationships with consumers as early as possible. Mercedes is also the first luxury car brand to release this type of model, and based on Ries’ and Trouts’ product positioning, that automatically gives them the advantage of being first onto the market and into the consumers’ mind.

If Mercedes is able to target less-affluent consumers, as well as maintain the pristine reputation of the brand, then Mercedes is looking at a wealth of customers from all income levels. Cheap, luxury cars has the potential to be revolutionary, and Mercedes would be reaping the rewards of being the first to offer them.

Sleek, modern and stylish; all for the base price of a mere $29,900.

2013 Mercedes-Benz CLA Super Bowl Commercial

https://www.youtube.com/watch?v=gu8aT6bcjFY

Sources:

Stock, Kyle. “Mercedes’s Lower-Priced Sedan Draws Luxury Buyers on a                                        Budget.”Companies & Industries. BloombergBusinessweek, 02 Oct. 2013. Web. 03              Oct. 2013.<http://www.businessweek.com/articles/2013-10-02/mercedes-cla-                  sedan-with-budget-price-outsells-high-end-models-in-u-dot-s-dot-debut>.

In recent years, interest in electric cars has risen substantially due to the global increase in gasoline prices and the growing concern of greenhouse gas emissions. But can electric cars overtake gasoline cars and become our main mode of transport for the future?

For electric cars to become the norm, companies that produce them such as Chevrolet, Nissan and Tesla must market the cars in a way that appeals to consumers. Consumers must be able to clearly see the benefits and the value of driving an electric car versus a gasoline car.

One of the main concerns for consumers about electric cars is the higher cost. But if more consumers went green and demanded for electric cars, the price tags for those cars will decrease. This is simply due to economies of scale; if big factory-like auto-makers such as Nissan and Chevrolet are able to mass-produce millions of electric cars, the price of each individual car will go down. It becomes beneficial for everybody that is directly and indirectly involved; manufacturers will be able to reduce production costs and sell more cars; consumers would save on thousands of dollars of fuel costs by going green; there would be less greenhouse gas emissions; and future generations would benefit greatly from our innovations.

Tesla Motors, the world’s first electric luxury car

Sources:

Gross, Daniel. “Tesla’s Rise Forces Other Automakers to Up Their Electric Car Game.” The          Daily Beast. Newsweek/Daily Beast, 25 Sept. 2013. Web. 27 Sept. 2013.                                 <http://www.thedailybeast.com/articles/2013/09/25/tesla-s-rise-forces-other-                   automakers-to-up-their-electric-car-game.html>.

Loiseau, Justin. “Pump vs. Plug: Do You Really Save Money Driving an Electric                              Car?”DailyFinance.com. DailyFinance, 24 June 2013. Web. 27 Sept. 2013.                             <http://www.dailyfinance.com/2013/06/24/gas-vs-electric-cars-cost-comparison/>.

In developing markets such as China and India, owning technology branded by Apple symbolizes wealth and status in society. Apple’s iPhone is the entry point into luxury  for millions of people in developing countries and it is by far the best selling Apple product.

Although Apple is releasing a cheaper iPhone 5C, Apple is losing market share in China. It struggles to compete with Chinese phone makers Lenovo, Xiaomi, and ZTE, which all offer solid mid-range android phones for half the price of the iPhone. Samsung is the current leader in both the Chinese and Indian smartphone markets. The secret to Samsung’s success? Samsung offers a rich variety of products that cater to consumers of all budget categories. It offers varied screen sizes, a broad spectrum of models to choose from, and fresh updates from Android only contribute more to the appeal.

If Apple wants to continue to grow, then it needs consumers in markets like China and India to buy more iPhones. My research reveals that China and India combined have over 1.5 billion people between the ages of 15-54. Consumers in that age group could potentially be in the market for a new smartphone, and Apple needs to design an even cheaper model than the 5C to appeal to the majority of that age group. If not, Apple will just be locked in the North American market, while rivals Samsung, Lenovo and ZTE take over the world.

Apple’s iPhone 5s

Samsung’s Galaxy S4

Lenovo’s K900

Sources:

“China Demographics Profile 2013.” China Demographics Profile 2013. Index Mundi, July         2012. Web. 19 Sept. 2013.

<http://www.indexmundi.com/china/demographics_profile.html>.

“India Demographics Profile 2013.” India Demographics Profile 2013. Index Mundi, July           2012. Web. 19 Sept. 2013.

<http://www.indexmundi.com/india/demographics_profile.html>.

Press Trust of India. “Samsung Beats Nokia to Top Spot in India, Apple Posts Strong                   Gains.”NDTV Gadgets. NDTV, 21 Aug. 2013. Web. 20 Sept. 2013.

<http://gadgets.ndtv.com/mobiles/news/samsung-beats-nokia-to-top-spot-in-india-           apple-posts-strong-gains-survey-408478>.

Yarow, Jay. “Apple Made One Thing Clear: It Doesn’t Care At All About Winning                           Smartphone Market Share.” Business Insider. Business Insider, 15 Sept. 2013. Web.           19 Sept. 2013.

<http://www.businessinsider.com/apple-clearly-doesnt-care-at-all-about-winning-              smartphone-market-share-2013-9>.

Internships are stepping stones towards successful careers. Many post-secondary institutions highlight the importance of internships and set it as a requirement for graduation. While I wholeheartedly agree that an internship is a very valuable experience, an article that I read recently from CBC opened my eyes as to how interns are unethically exploited by many companies.

The article reveals that the majority of interns are expected by their superiors to work overtime. Students also can be denied graduation if employers suggest to the school that interns refused to work overtime or complained about wages. It is clear that the power structure is overwhelmingly tilted towards the employers.

I feel that companies can continue to exploit interns because they realize that the unemployment rate and the competition is so high right now that students are willing to work long hours without any compensation to “get their foot into the door” of an industry. Companies should treat student interns equally as employees and pay them the appropriate wages.  We are going to be, or at one point before, an intern at a company and hopefully this article raises more awareness about the unethical practices that corporations do to exploit student interns.

Sources:

Sagan, Aleksandra. “Unpaid Intern Hell: Overtime, Tuition Fees.” CBCNews. CBC, 10                         Sept. 2013. Web. 11 Sept. 2013.