Rogers applies for banking license

Can you imagine signing a three year contract for a credit card? With Rogers recently applying for a bank license, telco companies entering the bank sector is becoming a very vivid reality. If so, what is stopping Facebook from joining the rush for the pot of gold at the end of the rainbow? Venessa Miemis, an external blogger for a global community of innovation, highlights the possibility that social networks could be next on the Minister of Finance’s waitlist. With banking as the new battleground, it is useful to question why telco companies are vying for the money in your wallet and if other large organizations will follow suit. Rogers strives to capitalize on the spread of financial transactions being completed over mobile phone and providing credit and payment services seems to be a logical launch pad. In fact, it seems to be what every company is trying to accomplish as “every year Canadians make more than $40-trillion of transactions and that generates huge profits for the handful of banks and financial firms that operate the payment system”. Venessa Miemis suggests that social networks are quite similar to telcos in her blog, meaning Facebook or Twitter could be next in asking you to apply for a credit card. Although the question lies in whether customers will be attracted to the financial services that Rogers could provide with the many options offered by other companies (Airmiles anyone?). The general consensus appears to be wariness of the corporate giant. The company with an average of four hours for waiting on hold for customer service is offering a credit card? Where do I sign up?

Gazze, M. (2011, September 06).Rogers wants to start a bank, could bring mobile               payment to mainstream. Retrieved from http://www.canadianbusiness.com/article/43486- -rogers-wants-to-start-bank-could-bring-mobile-payment-to-mainstream

Greenwood, J. (2011, September 07).Rogers one of ‘a dozen’ seeking bank post. Retrieved from http://business.financialpost.com/2011/09/07/rogers-one-of-a-dozen-seeking-banking-licence/

Miemis, V. (2011, September 09).Telcos becomes bank-facebook next?. Retrieved from http://www.innovationexcellence.com/blog/2011/09/09/telcos-become-banks-facebook-next/

Sturgeon, J. (2011, September 06).Rogers applies to open bank. Retrieved from     http://business.financialpost.com/2011/09/06/rogers-applies-to-open-bank/

Qwikie Separation

After the class discussion on the division of Netflix into two companies, I still felt the need for the juicy details of the separation. I could not fathom a good enough reason to entice Netflix to create Qwikster, forcing customers to pay double for both streaming and DVD borrowing. At first glance the decision appears to only be hurting the already failed marriage between Mr. Qwikster and Ms. Netflix. The stock has fallen 56% over a span of two months.  More than 1 million customers left both services simultaneously. The expected subscriber growth rate is diminishing. Yet these outcomes could have easily been predicted and probably were. Was breaking up the right thing to do? Many analysts point out the advantage of selling off Qwikster once provided with a profitable gain. However, it is quite obvious to consumers that the DVD business is dying a painful death as displayed by the Blockbuster demise. Then there is the idea of innovation. “When it comes to innovation, scale and breadth of offering often lose out to focus.” The splitting of Netflix can bring opportunities for the company to focus solely on the one purpose of the company whether it is streaming or mail, and inputting all resources towards the product. Although only the future can tell if the decision is right, for the time being the reasons are clear.

Berman, D. (2011, September 20).Making sense of netflix, or not. Retrieved from http://www.theglobeandmail.com/globe-investor/markets/markets-blog/making-sense-of-netflix-or-not/article2172703/

Kelley, B. (2011, September 19).Netflux – a qwikster innovation divorce for netflix. Retrieved from http://www.innovationexcellence.com/blog/2011/09/19/netflux-a-qwikster-innovation-divorce-for-netflix/

The genius of Apple

The COMM 101 class on Brand Positioning and Value Proposition triggered my curiosity regarding the business strategies of Apple Inc. The reason I chose Apple is simple. Although I thought extensively, I could not understand how I became convinced that Apple was an innovative company with unique products. I know I didn’t look up product specifications or read reviews, but somehow Apple won the battle for my mind. “Apple has positioned itself to a certain type of customer; people with good jobs, good lifestyle.” An interesting paradox is that if Apple were to decrease the prices of its products, sales would decrease dramatically and the brand would lose significance. It ties in with the belief that expensive equals high quality. The IPod, IPhone, MAC and IPad are all number one products in most consumers’ minds. However, there are also many similar products, why choose an apple over a berry? The key is that the products are not the entire story: “Apple’s genius was to make [their products] a platform that could feed off a vast ecosystem that included iTunes and a stunning array of apps.” Apple also caters to the creative side in every person. By fabricating an image that using a computer can be fun and even easy, the company seized an unmet position in the technological world. ‘”[Apple is] the only one I can think of that i truly couldn’t replace — in work or in entertainment. With any other brand that I love, there’s some other one I can turn to if it disappeared. But not Apple,” said one voter.’ Moreover, Apple repositions its competitors, continuously reminding the public of its stature. Apple Commercial. Mixing these factors creates a deeply engrained product ladder, making it clear why Apple is on my mind.

Miguel, A. (2003, June 29).Analyzing apple’s market position. Retrieved from http://www.osnews.com/story/3921

Nguyen, T. (2008 , March 31). Apple considered world’s best brand. Retrieved from http://www.tomsguide.com/us/apple-microsoft-google,news-889.html

Reguly, E. (2011, October 07). How apple outsmarted rim and nokia. Retrieved from http://www.theglobeandmail.com/report-on-business/commentary/eric-reguly/how-apple-outsmarted-rim-and-nokia/article2195146/

Women just don't ask

Since women entered the workforce, there has always been the underlying issue of a gender pay gap. However there is a small task that needs to be completed before the bigger problem can even begin on the path towards resolved. Women need to ask. In today’s society, “women earn on average about 78 cents to a man’s dollar.”Unfortunately waiting for a promotion or a salary increase won’t make it happen and can in fact hinder your future earnings greatly. Although, it brings up the question of “what make women to play into the stereotype of not advocating for themselves?” Is it because of their genetic makeup or the expectancy surrounding women employees? Since caring is a natural instinct for women, many have no trouble promoting others yet when it comes to supporting themselves, all engines fail. On the other hand, an interesting study gave results that given the same speech for a pay raise, viewers were more accepting of men negotiating than women. In fact women were considered aggressive when negotiating promotions. It has even become the norm for women to search out classes which specialize in the teachings for speaking up for women. At least steps are being taken to break through the stereotypes which lock women on the second step of the corporate ladder.

Eichler, L. (2011, October 05). At the risk of sounding pushy, you should pay me more.. Retrieved from http://www.theglobeandmail.com/report-on-business/careers/career-advice/leah-eichler/at-the-risk-of-sounding-pushy-you-should-pay-me-more/article2195052/

Ludden, J. (2011, February 14). Ask for a pay raise? most women hesitate. Retrieved from http://www.npr.org/2011/02/14/133599768/ask-for-a-raise-most-women-hesitate

LinkedIn joins the herd of social media

“It will get me a career”. “It is my path to a new life”. “I will make hundreds of connections”. These are just a few of the many beliefs that are linked to the increasingly popular business networking site, LinkedIn. Over the past few weeks at Sauder, it is a term that I hear more and more of, especially in my classes. After doing some research into the many views surrounding the career-oriented site, I have ambivalent feelings. The first reviews about LinkedIn revolved around how unnecessary another networking site after Facebook is, and there is only so much time people have to devote to online social activities. However, in the “always connected” business world, it appears to be a godsend. “Its value lies in the ability to create a digital network to complement and enhance your real-world network.” Some reports even conclude that LinkedIn is a dangerous addiction and gives users a false sense of security that online networking will really bring them the career they have always wanted on a silver platter. My analysis of the different views and opinions floating around in the World Wide Web leads me to believe that LinkedIn can be your new best friend, provided that it is used wisely, with a realistic view of the work needed to present oneself as a qualified and competitive candidate. Username and password? Done.

Caprino, K. (2011, September 13).Busting 8 damaging myths about what it can do for your career. Retrieved from http://www.forbes.com/sites/85broads/2011/09/13/linkedin-busting-8-damaging-myths-about-what-it-can-do-for-your-career/

Evans, M. (2011, September 30).Confession of a linkedin addict. Retrieved from http://www.theglobeandmail.com/report-on-business/small-business/digital/biz-categories-technology/confession-of-a-linkedin-addict/article2180658/