Month: November 2010

New York Attorney General Andrew Cuomo discovered the unethical practices of the student loan industry. It has been confirmed that the lenders “determine eligibility for private loans based in large part on the college students attend rather than individuals’ credit worthiness.” In recent years, the student loan industry has reaped in an astounding profit of $85 billion dollars annually. Not to mention that some of these private lenders are controlling 20% of the student loan market and this statistic may continue to grow in the near future.To flip an enormous profit, these companies loan students large amounts of money which they are legally obligated to pay back after graduation with high interest rates added on, leaving them further in debt. The student loan industry normally gives a 6-month grace period after graduation for students to secure jobs; however, after the 6-month grace period, interest rates begin to escalate. On average, statistics reveal that student loans burden individuals into their later years. The article I found on the “The Daily of the University of Washington” states that New York has passed the Student Lending Accountability, Transparency and Enforcement Act back in 2007 and that Cuomo has created a code of conduct that all lenders and organizations must follow in order to protect students from being victimized by the industry.

Link:http://dailyuw.com/2007/7/4/politicians-and-schools-resist-unfair-student/

Apple is one company that is dominating the market with their innovative technology. With the growing number of Macbook sales, Apple is currently one of the most influential and successful companies ever created. This year, Apple generated an astounding revenue of $20.34 billion dollars from Macbook sales alone. Figures were substantially larger when ipod sales etc. were included. The reason why consumers are snapping up Macbooks is largely due to Apple’s ability to produce cutting edge products with superior programs that are unavailable elsewhere.  Apple’s  Macbooks are known for their superior sound quality that is particularly  useful when producing music. Apple is showing entrepreneurial characteristics and initiative in their relentless drive to research and design new innovative products that is not offered by any other company. The new products are designed to target different consumer markets such as the ipad which focuses on increasing their senior customer base. Apple’s unique ability to foster an entrepreneurial culture is to be noted for as they constantly release innovative and creative products that are highly coveted, making it challenging for their competitors to enter similar markets.

This year Apple has shipped 1.69 million iphones to Japan “capturing the top share of the country’s Smartphone market.” The new iphones offered by Japan’s third-largest wireless carrier Softbank Corp accounted for 72 percent of smart phones shipped in the country. The iphones in Japan have become a huge success as more than 30.1 million apps have been sold in Japan as a result of the introduction of iphones. This is a form of market research initiated by Softbank Corp which came to the consensus that iphones would be in high demand. As a result, both Apple and Softbank Corp are thriving from the success of iphone sales in Japan.  Market research proved to be valuable in this situation as it helps Softbank Corp introduce a product (the iphones) that would create value in the mind of the customer. As discussed in class, market research is critical for any major company as the perception of value is constantly shifting. What this means is that the product or service that was popular in one particular year may not necessarily be desirable in the following year; therefore, companies need to conduct research to determine whether the market would readily accept the new product. Collecting data and doing research on the iphones before introducing it to Japan was most likely the determining factor for Softbank Corp to invest in the iphones.

Link:http://www.businessweek.com/news/2010-04-22/apple-captured-72-of-japan-smartphone-market-in-2009-update1-.html

This is a YouTube video that shows the opening of the iphone store in Japan. The video reveals the huge demand for these iphones.

Colorware was established in 2000 for the purpose of altering the color of existing products. Colorware allows customers to customize a variety of products such as phones (blackberry) and Headphones (Dr.Dre) etc. These products are either purchased directly from the company or the individual can send in their own product to get the color altered. Colorware offers customers a wide variety of colors and even allows the individual to pick the color of each part/section of their product thus creating a unique product that other people would not have. The website allows individuals to experiment with numerous color combinations on their product before they purchase. To ensure high quality customer service, Colorware has a 24 hour call service and live chats available on their main website for any immediate questions.

As previously discussed in class, Colorware strongly resembles Dell particularly in that their representatives attempt to establish a bond with their customers. Both companies also perform customization at a slightly higher price since consumers are are able to create a product that is a unique expresssion of their personal sense of style or taste. Colorware similar to Dell is one of the fastest growing privately held companies. Colorware has been featured in numerous high-profile magazines such as Vogue, In Style and Entertainment Weekly for its superior quality in both product and service. Both companies, conducts research on the latest products to determine what their customers desire as a matter of fact, every month Colorware offers new products that are available for customization. Colorware and Dell sell directly to their customers which helps to strengthen that bond. Having their products for sale online makes it convenient for customers to glance through their products in the comfort of their own homes as well as having the product(s) shipped to them. Both companies grew into a profitable business by creating a bond with their loyal customers and offering customization, which is a personalization element that few companies offer.

Walmart is one of the most profitable companies and many may be wondering Walmart’s secret to building a strong corporate empire. It appears their growth is due to their high level of customer service.  Walmart focuses on the significance of treating their customers courteously as well as offering them the products and services they desire with the intention for their repeat sales. In order to have high customer satisfaction, Walmart focuses on training employees on how to problem solve as well as guiding employees to exercise excellent customer service skills. In order to maintain friendly and enthusiastic employees, Walmart establishes a positive working environment and favorable working conditions because research has confirmed that employees who are treated better by their employers are more likely to perform better at their jobs. Similar to Walmart, we had discussed in class the rapidly growing shoe company known as Zappos. Similar to Walmart, Zappos also focuses on creating a loyal customer base by providing excellent customer service. During training process, Zappos focuses on core values where future employees endure 60 hours of customer-loyalty training. Zappos would offer incentives such as extended medical and dental benefits to further satisfy their employees. This just goes to show that financially strong businesses value the importance of customer satisfaction and that customer satisfaction pays off in the end, as it is a significant contributing factor in making substantial profits for these companies.

Links:http://www.ehow.com/way_5714916_wal_mart-customer-strategies.html