Jialu Li 's Blog

The emphasis on the different experience of the three most successful automobiles in Japan, along with the description of business strategies they used, gives inspiration for entrepreneurs about how to manage an effective business. Acura, the premium brand of Honda, firstly involved in the competition of automobile market in 1986, and defeated the Italians, Germans and British thanks to the extraordinary engines, luxurious appearance, and economic price. In addition, Toyota’s Lexus and Nissan’s Infiniti in their introductory adopted the similar strategy, which is recognized as providing a relatively low price to compete with those luxury vehicles attached with high price, such as BMW and Mercedes.

However, idealistically and paradoxically, the number of sales of these two brand vehicles lost out to that of Infiniti. After the unexpected failure, it is worth mentioning that the design of Lexus has been enhanced in recent years, and simultaneously, the Lexus has been equipped with superior engines and a series of high quality devices, such as shiny large grille and “garish LED lights” in order to reverse its negative situation and boost its sales. With great efforts made, Lexus has become the most successful automobile among Japanese cars. To conclude, the main reason why Lexus can achieve success in fierce competition is that it differentiates itself from competitors through a focus on providing exceptionally high quality products, innovative design and high-tech devices for customers.

Source Link:

http://www.canadianbusiness.com/companies-and-industries/how-lexus-won-the-war/

Rogers is recently looking for a new ad agency to represent their wireless phone services and cable other than Fido and Chatr as digital online advertising. Nowadays, handy devices are more popular, and Internet undoubtedly becomes an essential part of people’s daily life. Rogers now focuses on online advertising and emphasizes on digital is supposed to be wise.  The whole market is extremely competitive so far, for the sake of better development, every company should follow the trends and customer behaviors. Furthermore, the number of cable users and newspaper readers is definitely declining, so it is exactly the right time for Rogers to make this decision.

Online adverting enables Rogers to attract more customers, and meanwhile saving cost comparing with printed version. Personally, digital advertising will be the leading trend in the market, the whole market. Technology always leads to revolution; therefore, the changes following the innovation are always needed for every company if they attempt to survive in this competitive world. Take BlackBerry as an example. If a company remains the same, it eventually will be competed by other innovative company no matter how successful it used to be.

Source Link

http://www.theglobeandmail.com/report-on-business/industry-news/marketing/rogers-seeks-new-ad-agency-puts-emphasis-on-digital/article15460451/

As mentioned in the news that “the all-electric Nissan Leaf was the biggest selling passenger car in October”, and “Tesla shares have been one of Nasdaq’s hottest investments”. However, the article claims that the success of electric vehicles(EV) owing to taxpayers. A metaphor is used in the article to explain the reason-“[People] would not buy a gasoline car if there were not gasoline stations”. In other words, complete infrastructure, such as electricity station and other related facility demanded by drivers, is required in terms of the spread of electric vehicles. Undoubtedly, taxpayers pay for those if the government as well as the company attempts to popularize electric vehicles.

There is no doubt electric cars are technology revolution, and they are environmental-friendly and sustainable, and almost every driver wants it. The problem is that the cost of entry regarding both sellers and buyers is too high to afford. Technology revolutions always stuck in this kind of dilemma. It is unreasonable to say that taxpayers “have to” contribute to the electric cars. The infrastructure of electric cars is similar to gasoline cars, so is it also unfair to have gasoline stations from the view of non-drivers? It is always hard for a new product to enter a market and then become more popular in this market, people should look at those products from a long-term view.

Source Link

http://www.theglobeandmail.com/report-on-business/international-business/lavish-tax-breaks-contribute-to-electric-car-markets-success/article15465982/

The article briefly describes three models for effective innovation execution, which is model S, R and C. Model S is for small initiatives, which explains that initiatives should encourage their employees to devote their spare time and energy to the innovation ideas. Model R is used for initiatives that can be repeatable and predictable to let full-time employees in departments related to product, service and concept development to innovate. Model C, for customizing innovation, deals with the situation that there are incompatible innovation tasks that should be daily operated.

This post is related to today’s lecture topic, Innovation and Entrepreneur. Many people perhaps sometimes have a creative idea in their mind but apparently, just couple of them to make them to be real. The most important thing I learn from lecture and this article is to “move from ideas to innovation”, rather than keep in the light bulb stage. As lean start-up strategy mentions based on the creative idea, a business model, customer development and agile development are needed. Start-ups should get out of the building to test their hypothesis and build product iteratively and incrementally. This idea is exactly same as the model R; anyway, it’s never too early to innovate.

Source Link

http://www.theglobeandmail.com/report-on-business/careers/management/three-ways-to-move-from-idea-to-innovation/article15387933/

Lululemon, a company making athletic clothes mainly for yoga and jogging, has a competitive market in North America. The company delivers the concept of health by providing customers with functional as well as stylish clothes, and this is the reason that why lululemon is such popular today.

However, the quality issues of their products have gradually arisen such as sheerness, pilling. Unbelievably, Lululemon’s founder responses to the problem of pilling that “some women’s bodies ‘don’t work’ for their yoga pants”. Personally, it is so hard to understand why a customer is supposed to be fitted to a commodity. Lululemon’s success undoubtedly is because they followed their mission to offer exactly why customers need. This sequence is unreasonable to change regarding this market. Purpose drives a company to success but also can to regression. Taking Zappos as an example, it focuses on the delivery of happiness to buyer, employees and even the society. With this mission, Zappos is perfectly well-developing.

The success of lululemon cannot be denied, and the value the company provided is also visible. However, a profitable company should always be supported by customers, getting into customer minds is essential, but keeping a good reputation into their mind is more important.

Source Link

http://www.theglobeandmail.com/life/the-hot-button/why-lululemon-founder-believes-some-womens-bodies-dont-work-for-their-yoga-pants/article15345965/

Google recently made an announcement that companies are now allowed to use the related information, such as photos, personal information or comments about their companies or belonging products, of adult users on Google Plus or YouTube, or other services provided by Google to advertise. Apparently, this is a new approach for Google to earn money, collecting users’ information to sell ads.

Google chose to focus on the former one while facing the two common questions, “how to make profit” and “what the users want”. Sometimes, especially during this period of a company, it’s hard to balance both. People want more free services, and then Google keeps running “well” based on the some financial support from ads.

As known, this market is becoming badly competitive while thinking of the number of giants and corresponding success. The competition then, to some extent, forces them to earn money for the sake of better development. However, it is understandable but unreasonable sacrifice users’ rights to earn money though Google announced that users have chance to “opt out of being included in the new endorsements”.BUT why Google can’t just let users to opt in rather than opt out, it is obvious that the former on is the way that considers customers first.

Source Link:

http://www.theglobeandmail.com/technology/business-technology/now-google-wants-to-use-your-face-to-sell-ads/article14835102/

IKEA, a Swedish furniture giant, is recently selling solar panels in their Britain stores, which creates its new market of renewable energy. As mentioned in the article, IKEA chief officer Steve Howard takes the view that it is a perfect time to starts solar push due to the currently cheaper price of solar panels and government’s financial sponsors. Obviously, it is a wise market decision based on the analysis of market from a long-term perspective.

Accordingly, “IKEA presents itself as a green company with a social mission.” The executives of IKEA Group mentioned that they refused waste while reducing carbon-dioxide emissions, and they attempt to provide a chance for people to furnish like the rich. Indeed, Cheap, stylish, those terms are closely related to the brand IKEA in customers’ mind. The success of IKEA cannot be summarized just in 200 words but the key points – right positioning, concentrated customers targeting- is really sightworthy. IKEA focus on sustainability, environmental protection, and they always make new strategy according to the needs of their target customers. Getting into the mind of customers in the market is supposed to be one of their key strategies.

Here is video about IKEA’s new market decision: selling solar panels

http://www.theglobeandmail.com/technology/technology-video/video-ikea-starts-selling-solar-panels/article14678360/

Sources Links:

IKEA starts solar push in Britain

http://www.theglobeandmail.com/report-on-business/breakthrough/ikea-starts-solar-push-in-britain/article14627342/?from=14678360

The secret of IKEA’s success. (Here is a detailed analysis of why IKEA is succeed.)

http://www.economist.com/node/18229400

On September 23^rd, BlackBerry made an announcement that they are willing to privatize the company by making a deal with a group of investors at preliminary $4.7 billion. This news may not be shocking to the customers as well as the market because BlackBerry’s fall has been lasting for a period of time due to the competitive market- the wild popularity of Apple, the increasing users of Samsung as well as other Android smartphones. It is true that BlackBerry’s software has advantage in terms of company management and privacy, and the fans of BlackBerry, such as “corporate road warriors” and “text-happy youths”, still exist. Based on the whole market, BlackBerry is losing its competition and users, and this is easily seen form the flop of BlackBerry Z10 and the dropping share price.

Nothing last forever, the decay of BlackBerry as well as all the companies is unavoidable. Chances are that blackberry can reborn, but maybe in a different focused market. Personally, BlackBerry should think of their brand positioning and value propositions for the sake of revivification. Getting into the mind of the costumers based on the new analysis of the current market is necessary for BlackBerry to produce new products that satisfy users’ needs. Furthermore, repositioning the competition is supposed to be useful. The company should let customers know their completions and know why they are unique comparing with other competitors such as iPhone, Galaxy of other smartphones.

Sources Link:

http://www.economist.com/blogs/schumpeter/2013/09/blackberry

Recently, Twitter Inc. revealed its IPO, which indicates that the company’s recent growth is at a decreasing rate. This raises a concern about the business model of Twitter due to its growing popularity but diminishing rate of revenue. Basically, entering the public market, Twitter has trouble gaining profitable advertising revenue, creating market outside North America and solving internal issues regarding its product.

According to SWOT analysis, Twitter Inc. has a strong brand name and good reputation among users as well as its convenient application based on handheld devices. However, Twitter’s major challenge is how to fully capitalize on those advantages. A great number of users but also many fraudulent accounts, convenient utility on handy devices but facing the difficulty of placing mobile ads-those problems are derived from the developing and growth of Twitter. Making profits tends to be more important to Twitter Inc., especially since it enters the public market, but how to make profits in terms of its current business model should be considered carefully.

Apparently, making up for the existing deficiency is necessary but not enough, personally, trying to extend in Asia such as China worth a shot even though it’s hard so far.

Sources Link: http://www.theglobeandmail.com/report-on-business/the-short-message-from-twitters-ipo-slowinggrowth/article14712467/

Business ethics, as defined, is “the study of ethical dilemmas, values, and decision-making in the world of commerce” (MacDonald). Since heard lots of critique of companies regarding business ethnics, Toyota Motor Corp. is supposed to be a good example. According to The Globe and Mail, Toyota Motor Corp. recently have recalled about 200,000 hybrid SUVs all over the world because of a glitch in the inverter and 169,000 vehicles due to the problem of engine (2013). It is true that Toyota Motor Corp. did make some mistakes but the positive is their admitting faults and solving the problems. Just like Milton Friedman mentioned in the article “The Social Responsibility of Business is to Increase Profits” that the only “social responsibility of business” is to enhance their interests by using resources and participating while following certain regulations but no cheating at all (1970).

Personally, Toyota Motor Corp. is exactly behaving the same. It is impossible for a company to perfectly do everything; however, the possibility of fixing the problems always exists. Some companies would cover up the truth rather than be responsible for their faults. Anyway, taking business ethics seriously should first objectively faces the faults and then regards social interests as standard to increase their own profits.

References

Friedman, Milton. (1970, Sept 13). The Social Responsibility of Business is to Increase Profits. The New York Times. Retrieved from http://site.ebrary.com/lib/ubc/docDetail.action?docID=10187339&page=171

MacDonald, Chris. The Business Ethics Blog. Retrieved from http://www.businessethicsblog.com/

Toyota recalls 369,000 vehicles worldwide. The Globe and Mail. Retrieved from http://www.theglobeandmail.com/globe-drive/new-cars/auto-news/toyota-recalls-369000-vehicles-worldwide/article14103896/