The social networking company Twitter has said that it plans to raise finance $1bn through stock market. In my opinion, the main target of Twitter is still expansion 8 year after set up of the company. Since the financial report illustrates that the revenue grew from $28m in 2010 to $317m by the end of 2012, without making a profit. It is expanding so fast. The revenue streams come from advertisement sales(85%) and licensing its data. However, the business should achieve a balance because if it has too many advertisements, Twitter will be unpopular with users. The business has a very clear value proposition: it want to create an easy-to-use social media that creates something that people like and want to come back to spend time on. The business may want to raise finance through stock market to undergo further expansion, because the CEO said that they decide to raise capital and provide users with a excellent experience. But not all investors are optimistic to the share price, due to the poor performance of facebook share price last year. As a result, consumer expectation on share price may affect the actual share price.

Resources: http://www.bbc.co.uk/news/business-24392336

http://www.bbc.co.uk/news/business-24075010

It is reported that Blackberry faces a $965 million loss for the second quarter ending on 31 August. The 49% revenue decrease makes the CEO and investors disappointed. After reviewing the managerial and financial accounting reports, the CEO says he is very disappointed. The sharp fall of Blackberry revenue may be caused by switch of customers to Apple once it launches its smartphones. The company’s operational reports, which focus on internal situation of the business, make CEO think about transition. The financial reports indicate a loss. In my perspectives, it has negative effects on investors’ confidence but some investors can buy more shares as the share price is decreasing. Therefore, investors can read the financial reports to get information about the company that if it is worth investing, because financial reports focus on the future. The high competition level in cell phone market makes it difficult for Blackberry to expand its market share. As a result, the business should have a very clear value proposition and market segment, to avoid failure in direct competition with iPhones.

Resources: http://www.telegraph.co.uk/technology/blackberry/10339283/BlackBerry-plunges-to-1bn-loss.html

YG Entertainment is gong to release the second audio album for its artist, G-Dragon, in a limited edition of 8888. The business promotes the minimization of sound bending and deformation in live concerts, which seem like points of parity in all audio albums produced by competitors. Like other Korean entertainment businesses, YG signs contracts with groups of 4 to 5 people and try to ‘transform’ them into star. Usually the peoples have outstanding appearances and excellent skills in singing and dancing. However, YG entertainment try to differentiate itself from its competitors by design special outfit styles, hairstyles and performance styles. The business tries to emphasize its points of difference compared to other businesses. For example, Gang Nam Style was extremely popular last year, because YG wants to present a completely different style of performance. The song is passionate, simple to remember and even a little insane. It becomes popular as soon as it comes out. The same concept applies to the band called Bigbang. The fancy dressing style and performance style of Biabang attracts millions of young people around the world. YG specializes in providing fancy and insane performances, and the dressing style of its artists has lead a fashion trend in Asia.

Resources: http://www.ygfamily.com/notice/NList.asp?LANGDIV=K&Page=1&n2PageSize=8&IDX=5251&sType=A&SchKey=&SchTitleN=

http://en.wikipedia.org/wiki/Points-of-parity/points-of-difference