Monthly Archives: October 2014

The Northern Gateway pipeline, approved by Stephen Harper’s government in June, is a pipeline worth $7.9 billion and would run from Alberta to Kitimat, BC. However the pipeline project does not come without controversy. Several First Nations groups, especially the Yinka Dene Alliance, are opposed to pipeline and have sworn to not let it be built. This is because about 25 percent of the 1,177 kilometer long pipeline is on First Nation land. However, Enbridge claims that 26 of 40 First Nations have signed equity sharing agreements, including 11 of the 22 First Nations that are along the proposed pipeline route. If Enbridge’s Northern Gateway project was to go through a PEST analysis, it’s main factor affecting this project would be it’s social factors and if there was a SWOT analysis, there would be a major threat factor. The project is government approved, but there is a strong First Nations force that is opposing the pipeline. I can see why the First Nations would not approve of this project since there is always a chance that the pipeline would burst and cause catastrophic environmental damage. However, the project can help boost the economy from the sale of oil and provide jobs during the construction of the pipeline.

Sources:

http://www.vancouversun.com/news/There+will+pipeline/10122968/story.html

Picture:

Map.jpg. Alexandra Joyce’s Blog. Web. 5 Oct. 2014. <https://blogs.ubc.ca/alexandrajoyce/files/2012/09/map.jpg>.

After reading about Joban Sandhu’s blog post about Snapchat’s high valuation, I can understand why many people may value the company at $10 billion. Although the company may not have a revenue stream at the moment, they do have a large user base which can eventually be turned into profits. I agree with Joban when he states that “Snapchat adheres to a focus differentiation strategy” since it is a unique product that targets a specific market. However, I do not agree with Joban’s thought on how he can see why the “owners want to continue providing the user-friendly experience” without generating revenue at the moment. I believe that the company will need to be able to produce a profit soon in order to maintain its high valuation. There is no proof that Snapchat could even generate a large enough profit to make their high valuation seen realistic. The popularity of instant picture sharing could just be a fad and the number of daily users could diminish just as quickly as it grew. If Snapchat were to somehow integrate advertisements or sell user information to advertisers, I can see how the company can be successful and make some money, at least in the short term.

Sources:

https://blogs.ubc.ca/jobansandhu/2014/10/04/why-is-snapchat-valuated-so-highly/

Image:

Snapchat-Logo.jpg. Slash Gear. Web. 4 Oct. 2014. <http://www.slashgear.com/snapchat-settles-ftc-suit-admits-guilt-about-security-issues-08328209/>.