The topic I want to discuss in this blog is: will company be better off if they decide to target on one specific market within a big market circle. For example, within the sport wearing and accessories industry, there are many companies such as Nike, Adidas, Puma and so on. They almost produce every sports wearing and equipments: basketball, soccer, football, hockey and running. At the result, they own large market share and make a lot of profit from it. However, there are still some companies like Lululemon, they target on specific market, Yoga market, and they are operating quiet well and making a lot of profit as well. Another example will be Sony and Apple, they are both 3c and electronic companies that making tons of profits every year. however, in terms of market shares and market involvement, Sony does provide more type of products to the customers. Sony produces TVs, Cell Phones, Laptops, Speakers, walkman and so on. Compared to Sony, Apple manly focuses on producing cell phones, laptops and portable music players. Even though, there are differences in market size and market involvements, both companies are making almost same amount of profits every year. therefore, is market involvement and market size really matter in terms of profit maximizing?

       This can be addressed in many different ways. In terms of market size and involvement, if a company involves in many different areas, the management and quality control of the company will be hard to control and manage. In order for companies like that to make profit, they need to have well-planned and well-structured company managing and quality control system, otherwise, the “larger” the company is, the messier it will be. On the other hand, company like Apple and Lululemon, since they target on specific market, they have relatively less stress and pressure over management, the only thing they need to do is concentrating and focusing on designing new and attractive products to compete with those “large” companies. Also, if a person is looking for specific type of products, for example, a yoga wearing or a smart phone, they will tend to choose yoga wearing from Lululemon and smart phone from Apple other than Nike and Sony. This is because, most people believe they quality will be better if a company only producing on or few specific products.

      Overall, to determine which one is actually better, it’s really depend on what type of business model you want your company to be.

Reflection on Ian’s blog post about Ethic

       Business ethic is always a popular topic in the field of economy. In the economic theory, it says that all the firms are focusing on profit maximizing. As the result, it creates many unethical activities such as the poisoned milk powder issue happened in China. In Ian’s blog, he mentioned that a dairy company named Sanlu. In order to understand this event more clearly, I had done some research. Sanlu is founded in 1956 and it was once being the top 3 milk powder companies in China, had a great reputation. There were many children raised by Sanlu’s milk powder. However, in 2008, sixteen infants who has been fed on milk powder produced by Sanlu, were diagnosed with kidney stones and many were dying. This serious issue attracted many attentions from different group of people and also media. Quickly, Chinese Government stepped in and started investigating. They found that Sanlu has been adding a chemical called Melamine into their product. The effect of that chemical is to increase protein content, however, It has negative impact to human body, specially to children whose bodies are still growing. After the exposure of this, Sanlu’s market share shrieked and disappeared from market.

       This is a good example of illustrating the goal of each private company: companies trying to minimize their cost at same time maximize their revenue. This specific example also prove that companies will use different strategies to reach their goal. Sometimes, company may choose wrong path and end up destroying themselves. However, if company has clear goal and always operate ethically, they might not be the most profitable one, but look at long term development, they will make more money than those who focus on short term profit and act unethically.