Hostess Inc., the creator of the infamous Twinkies, announced that they will be shutting down operations. However, just like the product itself, the Twinkies brand will not expire just yet. According to Jamie Weinmen’s blog, “Hostess: the Super Villains have Triumphed”, the Twinkies brand will most likely be up for sale to the highest bidder. The main focus of his blog was actually the comic book ads that were used to endorse Hostess products in the past. Hostess took advantage of an ingenious marketing strategy by paying all the top comic book companies to post a small one page ad. I believe that this was a great marketing strategy at the time due to the huge popularity of comic books.

However, considering the decline in the comic book industry and the Marvel and DC Universe superhero era, this marketing strategy would not have been as successful today. If Hostess were to have any chance of surviving in today’s society, they would have had to adapt to the changing environment and technology. I believe that Hostess’s marketing strategy could not adjust to the rapid changes in trends, causing the company to drive itself into bankruptcy. Hostess’s failure to adapt their value proposition to fit a more health conscious society may have been another reason for their demise.

Microsoft has had some tough times in the past few years. The increase in competition and the sudden emergence of the Apple phenomenon has caused Microsoft to focus selling their company image rather than their product through direct selling. Microsoft recently established their first Canadian retail store in Toronto’s Yorkdale mall, and it is evident that customer appeal was a significant factor in the blueprints of the store. Celebrities such as Wayne Gretzky have endorsed the new store, and massive monitors cover the walls from edge to edge. In fact, all the screens in the store, from the massive television screens mounted on the walls to the tablets put on display, are touch sensitive in hopes to keep customers more engaged. Microsoft is also trying to establish stability in the community by lending back store space, comprising of a 103 inch touchscreen monitor, free to community groups. However, this strategy is not without risk. Companies such as Best Buy have experienced many problems with owning expensive retail stores. The investment of a retail store could be a drag on future income statements if the store fails to increase revenue, but companies such as Apple have found great success using this strategy. In the end, I believe that this marketing strategy has potential, but well trained employees to enhance customer experience and satisfaction is essential for the success of this strategy.

After reading Vanessa Lau’s blog, I was immediately intrigued with her article about Best buy, “Best Buy’s One Bold Move”. Earlier in the year, I blogged about Best Buys struggles in the electronic retail industry and their declining market share.  Online retailers such as Amazon.com started to have more appeal to consumers and companies such as Walmart were able to sell products for cheaper. One of the key points I noted in my blog was that it was essential for Best Buy to come up with a points of difference to distinguish themselves from their competition. At the time, there main strategy to counteract their competition was to price match. I was not too sure whether getting into price wars with companies such as Walmart was a smart idea. However, after reading Vanessa’s blog, I see that Best Buy has taken a different approach. They are now focusing on selling relatively unknown brands to consumers who cannot afford to buy the reputable brand products. If Best Buy can market these new brands as a product that is just as capable as the powerhouses in the electronic retail industry, they may be able to distinguish themselves apart from the competition and delve into a separate segment in the market. 

In Gaby Herberts “the PSYchology of Marketing”, she touches on the effects that media can have on company profits. In her example, she uses the international pop star sensation, PSY. What shocked me was the amount of companies that were able to cling on and ride the success of this Korean sensation. DI corp. was an example of a company experiencing a huge increase in profits and stock price due to PSY ongoing success. Companies have lined up for blocks trying to get PSY to endorse there product, and the Korean pop star has been more than happy to do so. He has endorsed dozens of companies and has helped nourish these companies’ stock prices.

However, I believe that this may be an unstable and temporary marketing strategy. Companies have always tried to get celebrities to endorse their products but when one company’s success is highly dependent on one person, there is a chance for that company to crash. Social trends are always changing, and an international legends can go obsolete in a matter of weeks. For example, DI corp.’s shares, the company that experienced huge spike in stock price from PSY success, has already nearly plummeted 40 percent in the past few weeks. I believe that investors should be wary in investing in companies that are mooching off the PSY phenomenon.

Obama winning the election has headlined thousands of newspapers across the world since Tuesday but the market experiencing a huge crash post election may also catch people’s attention. The DOW jones industrial average was down 313 points which was the biggest drop since Nov 9^th of last year. The S&P 500 and Nasdaq Composite also dropped by 2.59 and 2.43 percent, respectively. There is great uncertainty looming over the market, and many investors are worried about the “fiscal cliff”. It is said that if the US were to go off this cliff, the economy would dive into recession and the unemployment rate would once again spike up. Some analysts such as David Joy, chief market strategist at Ameriprise Financial, have predicted that “the longer the negotiations to avert the cliff continue, the greater the consequences will be to the corporate confidence and hiring”. Analysts have recommended investors to reduce the risk in their portfolios and to invest in larger companies rather than smaller companies. Larger companies tend to have a diversified revenue stream and pay dividends. I believe that investors should cut back on risks and focus on buying established companies that pay high dividends until the uncertainty over the market is cleared.

Find more info at

http://online.wsj.com/article/SB10001424127887324894104578109002624355318.html?mod=googlenews_wsj

The recent emergence of Amazon.com has caused investors, and even owners, to become skeptical about Best Buys future. With many people switching from shopping at stores to shopping online, Best Buy has felt the devastating effects, evidently showing up on their annual reports. Profits have decreased by 92% in total and their year over year sales fell by 3%. However, on the bright side, the playing field has become a little more even, with fewer states allowing internet retailers to sell their product exempt of taxes. Is this the difference that Best Buy needs to make a comeback into this fight over the electronic sales market?

            I believe that Best Buy must find a competitive advantage or a point of differentiation over their competition. It has become evident that people are using Best Buy as a showroom before actually buying the product at home. Best Buy has launched a price matching approach to combat this dilemma, but is it enough to gain back market shares. It may prove to be profitable if they can revive some of their lost customers, but the price matching strategy will be a risky venture due to the decrease in revenue and increase in costs.

http://www.webpronews.com/best-buy-plans-to-price-match-internet-competitors-this-holiday-season-2012-10

http://www.federalnewsradio.com/616/3076111/Best-Buy-to-match-some-rivals-online-pricing-

Research in motion, the innovators of the first ever smartphone, have been steadily spiraling into bankruptcy. On Feb 17^th 2011, Rim was at an all-time company high with each share worth $68.92. Today however, it has plummeted to $8.06. Rim used to dominate the smartphone market and control consumer taste, but now they lie in the shadows of Apples Iphone and Samsung’s galaxy. However, there may be a shed of light at the end of the tunnel for Blackberries Research in Motion. With speculation over their new product, Blackberry 10, people seem to be a bit more optimistic about Rims future. Many investors believe that this product may be the final chance for Research in Motion to make a healthy recovery from the devastating past year. The prototype has been successfully marketed so far. As a result,  Rim has experienced a small increase in stock price strictly based on speculation over the new product due to be released early next year. Speaking as a part owner of Research in Motion, I hope that the company will make a comeback in the smartphone market, and that Blackberry 10 will be a big hit with consumers.

“In the big picture, nobody, not even RIM knows whether this is going to work for them,” Charter Equity Research analyst Ed Snyder.

http://www.canoe.ca/Canoe/Money/News/2012/09/28/20243526.html

In the past month of September, the Canadian economy has experienced a substantial increase in job availability. A dramatic gain of 52,100 new jobs gave economists a reason to be optimistic about the future Canadian economy. However, even with the increase in jobs, unemployment rate unexpectedly increased by one tenth of a percent to 7.4%. Economists believe that an increase in job availability caused a increase in demand for jobs; thus, increasing the unemployment rate. This sudden prosperity is also being experienced by the U.S with a net increase of 114,00 new jobs. However, there are many pessimists that believe that this good fortune may not be sustained for a long period. The global economy is still feeling the effects caused by the European debt crisis and the slowing Chinese economy.

I believe that the increase in jobs will improve the  Canadian economy by increasing the average income and decreasing the unemployment rate in the long run. Businesses will prosper due to the increase in income of the average consumer and society will benefit as a whole. However, it is still unsure how the consequence of the crisis’s in the global economy will directly affect North America.

http://www.thestar.com/business/article/1267326–unemployment-rises-despite-big-job-gain-statscan

On Wednesday, September 12, 2012, 80 cast members were in outrage over a Islamic movie that was recently filmed. The cast members were harshly manipulated by the producers, and were grossly misled by the intent of the film.

“The entire cast and crew are extremely upset and feel taken advantage of by the producer”

An actress in the film said many parts of the script were changed, and the movie plot did not resemble the initial draft they were shown when hired for the part. Due to the outrage that was caused in Libya, the blame for the film was shifted towards the United States, resulting in the death of four US ambassadors. The film continued to bash Islamic and Muslim beliefs.

When a business disregards the values of their employees and most importantly, their community, consequences are sure to arise. According to R Edward Freeman, a successful business must give value to both employees and community. In this situation, this film has brought forth a international crisis, and has resulted in the deaths of many innocent people. Although the producer possibly had good intentions in producing the film, the ethics he exhibited were simply iniquitous.

more information on the topic can be found on:

http://www.cnn.com/2012/09/12/world/anti-islam-film/index.html?npt=NP1

http://www.cnn.com/2012/09/12/world/meast/egypt-us-embassy-protests/index.html?npt=NP1