Monthly Archives: October 2014

An activity that has gained popularity in the digital sphere is music streaming. A ubiquitous issue for streaming service providers is how to differentiate from their competitors in the industry. Companies often appeal to their customer segments by offering value propositions and points of differences. These efforts in turn provide them with a comparative advantage over their competitors in the industry. As seen in this article, Tidal is launching a platform in the UK and US which charges twice the price of its rivals for the proposition of a quadrupled standard in music quality.

In response to Sharon Zhao’s blog post found here, Tidal does not need to embrace the widespread freemium business model that many competitors in this industry choose to adopt because Tidal is positioning itself as a premium service which dominates the exclusive market of audiophiles who are willing to pay for high quality music. The Scandinavian tech company Aspiro  launched Tidal which offers value propositions which its rival firms are unable to match. The consumer is often willing to pay more for a unique service or product, and in this case, Tidal is offering over 25 million songs, 75 thousand music videos and interviews and editorials of emerging artists. Competitive markets often pushes firms to re-position themselves to achieve more market dominance. This often means differentiating from other firms in the industry. Unlike its competitors, Tidal doesn’t offer a free version of its services. This indicates that the firm targets a customer segment which is willing to pay a high price for high quality service. Other similar streaming service providers such as Deezer, Spotify and Qobuz are trailing Tidal in their ability to offer lossless quality music streaming technology and will still rely heavily on the freemium business model which has such a firm grasp on this particular industry.

Sources Referenced:

Dredge, Stuart. “News Technology Digital Music and Audio Tidal Takes on Spotify with Lossless-quality streaming music.” Digital Music and Audio. The Guardian, 28 Oct. 2014. Web. 29 Oct. 2014.

Image taken from here

Social enterprise has been gaining momentum as a movement and the issue of corporate social responsibility has made its way from boardroom meetings to dinner table discussions. Business ethics and social stewardship becomes and increasingly integral part of many companies’  core values and vision. Contrary to the notion that a firm must have deep pockets in order to make a change, two young entrepreneurs from Charlottetown are making a difference with their company Kioha. As indicate by this article Hughes and Manning have created a social enterprise which is making a difference for the youth in their community.

An aspect of social entrepreneurship which Hughes and Manning approach in a different manner is that of philanthropy. Kioha follows the concept of reinvesting profit into the community. This differs largely from many large firms wherein their contribution to the society is in the form of a pledge. Hughes and Manning’s approach of reinvesting into the community through youth programs is novel. Kioha demonstrates its social stewardship through its large stake in initiating youth programs. In addition to a social enterprise representing a commitment towards benefiting society, it also represents a sustainable business in the financial realm.  Both Hughes and Manning are aware that the change they are making in the community they must equally grow their company. The company’s primary channel is through their website. As opposed to creating more channels, Kioha is developing new partnerships with other social enterprises to create a greater change for youth. Kioha is being established as a social enterprise which acts as a platform from which Manning and Hughes can effect a change of a larger scale. As Manning would describe, he intends Kioha to be “something that will be strong and reliable and a part of the society and community”.

Sources referenced:

Heald, Melissa. “Young Entrepreneurs Want to Give Back.” – Business. The Guardian, 19 Oct. 2014. Web. 20 Oct. 2014.

Image taken from here

When a large decision is made, contention is inevitable. However, when a gargantuan project the size of BC Hydro’s Site C is proposed. Many more voices are calling to be heard. As shown in this article, Site C project is a controversial hydroelectric generation station on the Peace River in Northeastern British Columbia being proposed by BC Hydro, the province’s principle energy company. The project is currently awaiting determination on the company’s proposal. Although this project is of high value economically to both the government as well as BC Hydro, many industry forces are slowing the progress of this proposal and pose a significant threat to a positive determination on the proposal.

A key stakeholder impeding the progress of this decision is the Tsilhqot’in First Nation. Aside from the government and BC Hydro, the First Nation affected by this decision has political, economic and social role in this decision. The First Nation, which has inhabited the land in question has inhabited the territory for many generations. As a result, the Tsilhqot’in First Nation has been de jure in title of the land. This project would economically benefit the company and the government. However this economic benefit is marginal with respect to the First Nation. The controversy surrounding this contention is centered around the political statement and social unrest an approval of this proposal would be. In essence, a widespread awareness of the consequences this project would have on both the aboriginal land and its inhabitants raises questions about business ethics. Sources cited: O’Neil, Peter. “First Nation Chiefs to Stage Site C Showdown.” First Nation Chiefs to Stage Site C Showdown. Vancouver Sun, 18 Sept. 2014. Web. 7 Oct. 2014. Picture taken from here

Image taken from here

In recent years, outsourcing and exporting production away from the company’s home nation has been a trending strategy to reduce costs and maximize profits. Providing that outsourcing labor to a different country may reduce costs and maximize production, moving production away from the home country often raises issues of national pride. In the article found here, Pitas argues that government intervention and a unique case of globalization has resulted in British automakers overtaking French automakers. I must agree with Pitas in his position that it is government intervention and policy is a key determining factor as to where a company locates its production. In the article, the gravity of a company moving away from its host country is clearly expounded. Exporting production to a foreign country has a large impact on the local employment market. Meanwhile, from a positioning perspective, it makes sense from a managerial perspective for a company to minimize costs in order to maximize their profits. As Pitas mentioned, the dilemma of whether to outsource production efforts to a foreign country is not black or white. I would say that although this is pointing out the obvious, it is true that their are both benefits to outsourcing production such as minimizing production costs and taking advantage of government incentives. On the other hand, the argument that many losses such as employment and national pride also comes with the exporting of labor. In essence although exporting labor may not be black or white, it may be the current prettiest shade of gray.

Citation: Pitas, Costas, and Gilles Guillaume. “Special Report: In Foreign Hands, British Automakers Overtake France.” Reuters. Thomson Reuters, 1 Oct. 2014. Web. 1 Oct. 2014.