Month: November 2011

EasyJet has recently announced “that it is to trial allocated seating on selected routes  [starting] from Spring 2012″. Stated in the Gulliver blog of The Economist, EasyJet is stepping away from the usual low-cost model. Passengers paying extra can choose from one of the more desirable seats in the front or near the emergency exits. EasyJet’s bosses are only planning to pursue this plan in the long IF it will increase revenue and customer satisfaction.

Frequent flyers, especially business travellers, would appreciate reserved seating as plane rides serves as their time to rest comfortably! Some passengers do like the extra leg room when seating on these seats. Introduction of this seating plan will have travellers boarding more leisurely.

However, a few setbacks might occur in the long run. It’s hard to predict whether EasyJet will make money directly from the plan and it can have an effect on the carrier’s operating strategy of short turnaround times. Costs will rise because ticketing technology will be needed to facilitate allocated seating and the revenue generated from this can decrease the revenue earned from Speedy Boarding.

EasyJet should carefully analyze this to ensure that the company’s reputation will be preserved.

Word Count: 198

Image: http://www.anna.aero/wp-content/uploads/2008/11/easyjet.jpg

New data from Statistics Canada shows that wages are continuing to fall and Canadian workers are having difficulties with the rising cost of living. And according to economist Benjamin Tal, it will continue losing ground to inflation over the next 12 months (Morrissy, 2011). Statistics show that Canadian earnings bordered up to 0.3% while cost of living is rising at 2.9% annually. Tal also noted that it coincides with weak jobs growth over the last few months; a reflection of less hiring in public sectors, low quality jobs in the construction and manufacturing industries, and employment is generally slowing down. The Canadian economy will see feeble growth as consumers are a major component of the economy.

What does this mean?  The cost of living has pretty much doubled for some because of inflation and higher taxes and to make matters worse,  it’s accompanied with slashed work benefits, such as vacation and sick days. It seems that the government has the work around to improve the economy when incomes are decreasing and purchasing declines. And with the added instability of many world markets, especially the European markets, something needs to be done in order to avoid another recession to start up!

Word Count: 200

Image: http://www.canwinvisa.com/workers_clip_image001.jpg

There’s exactly 31 days left till Christmas and for Americans, it’s time for Thanksgiving and excessive shopping weekend with the annual “Black Friday” sale. Even though it’s not a typical holiday for Canadians, some stores have gradually picked up this American culture.

Black Friday (Wikipedia, 2011) is the day after the American Thanksgiving and marks the unofficial start of the holiday shopping season. “Canadian retailers, in recent years, have become increasingly aware that Canadians have been taking notice of the Black Friday hoopla” (Derek Abma, 2011) and a handful has followed suit with offering deals just like their American counterparts. The idea of Black Friday is becoming more common to Canadians that many cross the border to take advantages of deals.

Since Walmart Canada’s research shows that over 70% Canadians do recognize the holiday, why wouldn’t all the stores do the same? They can benefit from this sub-culture as the holiday shopping season continues. If not, local retailers and the Canadian economy can see loss in sales as Canadians wanting to start their Christmas shopping as soon as possible will continue to hunt for special deals down in the States.

Besides, it’s not bad to borrow an American culture, is it?

Word Count: 200

Image: http://4.bp.blogspot.com/-4ZWiDNJW858/TrAiAaLZTkI/AAAAAAAAAH8/PeC_psuL4uc/s1600/black_friday_2010_aeropostale-thumb-590×392-62546.jpg

Ever notice the little call button on your friend’s Facebook profile?

Launched officially last July,  Facebook and Skype has merged “their services to allow users to video call any of their Facebook friends” (Furr, 2011). Facebook users click on the video icon and get connected instantly via video. In Benedicta’s blog, she talked about how this move is competing with technology powerhouse Google’s introduction of Google+ “Hangouts”, which enables a group of people to video chat together. In more recent news,  the two of the biggest names in the social media industry has extended the merger “by [Skype] releasing updates that embed its software more directly into Facebook, allowing video chats across both networks” (Evangelista, 2011).

The big bosses say the goal of the integration is for simplicity. I say the move is just to deepen the heated rivalry between all these types of social media. One is scared to lose their market to the other, and vice versa. But really, how many users around the globe actually click on the video chat icon on Facebook? I personally don’t; I use Facebook for networking purposes and use Skype for video calls.

And I’m positive that many do the same too.

Word Count: 200

Image: http://www.techinsert.com/wp-content/uploads/2011/07/fb-video-calling1.png

“Marketing is about connecting people to products and services, and one marketing analyst says when it comes to marketing its products, the Vancouver Canucks get it” (The Canadian Press, June 2011).

During the team’s playoff run this past spring, the downtown district was covered with blue and green. Canuck merchandise was a big hit that it’s possible if one wanted to join the bandwagon and purchase a jersey, they’re out of luck! It is no surprise that the Canucks are in a league of their own when dealing with the business aspect of the sport (Mayenknecht, 2011).  So, what is their secret?

Well for starters, the Vancouver Canucks have sold out every home game since 2002 and is currently standing at 369 games. The undeniable support the city gives to the team is crucial to the rising revenue (merchandise, tickets, TV broadcasts) the organization generates during the season. Also, with their skytrain banners – “Heart of a Canuck”- and their sponsorship with Canucks Place, it shows how passionate and determined the players are in engaging with the community. This engagement has the Canucks well-placed as one of the NHL’s most valuable team.

And as they always say, “We are all Canucks”.

Word Count: 200

Image:  http://3.cdn.nhle.com/canucks/images/upload/gallery/2011/10/SKYTRAIN_Burrows_Stadium_k_slide.jpg

Imagine yourself standing with a gazillion commuters during the usual afternoon rush, smartphone in hand, Angry Birds on, and suddenly a banner appeared saying that you have won six bags of popchips! And, you thought to yourself, hey, your day just got a little better.

Co-founded by a UBC Sauder graduate Brian Wong, Kiip is a mobile rewards network that “has partnered up with big brands (Sephora, popchips) to offer players actual in-game rewards” when gaining achievements like proceeding to new level or accumulating a certain number of points (Alexia Tsotsis, April 2011). It’s basically reaching out to consumers when they get an “earned” promotion while playing games. They also target “algorithmically based on game demographics” which means they wouldn’t offer a lipstick sample if the customer wasn’t a girl! Customers are also given the choice of gifting the reward if they don’t want it for themselves.  This mobile ads start up exhibits promising innovation to traditional advertising. It’s creating a business model for in-game advertising, and what’s even better is that it doesn’t have to fight for consumer’s attention anymore because most are on their phones 24/7.

And gaming’s always a fun way to kill time when on transit!

Word Count: 197

Image: http://www.okaygeek.com/storage/post-images/internet/websites/kiip.jpg?__SQUARESPACE_CACHEVERSION=1304456461332

After my Europe trip last March, I was fascinated to see that the clothing company, Zara was similarly sought after in London and France, just like how it is in Vancouver. With its latest trends and exclusivity aura, Zara is a popular fashion chain to most young female adults and has set itself apart from competitors, such as H&M and Topshop. Why is that?

It’s evidently known in the business industry that the Spanish retailer hit a jackpot with its supply chain model! Zara is known to design and distribute to the market in just fifteen days, a clear sign of advantage among competitors (Harvard Business Review, 2004). The company has developed a fashion business model around the concept of “mass customization”.  Even though it adds an extra cost to pursue this specific strategy, Zara manages to keep variety high, have inventory low, and maintain customer satisfaction, which is key to keeping a strong position in the fashion industry. It can be seen how the marketing and operations need to work closely together to deliver such complicated model. The  integrated operations team working behind the scenes for this fashion chain can truly be the reason for its undeniable high reputation!

Word Count: 200

Image: http://i.bnet.com/blogs/zara.jpg