Japan Airlines makes deal to buy from Airbus

When people talks about aircraft, the most familiar aircraft might be Boeing due to its long history and good performance. However, in the recent years, many problems exist on Boeing’s aircraft, such as overheat battery of Boeing’s 787 Dreamliner¹. This causes Boeing to lose buyers that recently Japan Airlines chose to buy aircraft from Airbus. In fact, Japan Airlines has been purchasing aircraft from Boeing for a long decades. However, the problems of Boeing aircraft decreased the customer and increased the cost of Japan Airline. Thus, Japan Airline made a deal to buy 31 Airbus A350 wide-body jets  from Airbus².  

In order for a brand to hold its position in a competitive market, it has to have its unique value proposition. For a aircraft industry, the main goal is to provide a safe aircraft. In this case, Boeing provided the light-weighted Boeing 787 Dreamliner, initially to save cost for airlines, but series of problems results in a higher cost. In such competitive market, any negative information of a company will cause the company lose customers and suppliers, even for the company that has been cooperating for a long period of time.

http://www.washingtonpost.com/business/boeing-787-dreamliner-woes-continue-as-polish-airline-flight-diverted-due-to-faulty-antenna/2013/09/29/e1f3c4e0-294e-11e3-b141-298f46539716_story.html

http://www.washingtonpost.com/business/boeing-787-dreamliner-woes-continue-as-polish-airline-flight-diverted-due-to-faulty-antenna/2013/09/29/e1f3c4e0-294e-11e3-b141-298f46539716_story.html

http://www.nytimes.com/2013/10/08/business/international/jal-orders-9-5-billion-worth-of-airbus-jets.html

Ford Investing $700 million in Oakville Ont.

Ontario and Ford

Ford, as one of the biggest automaker company in the world, is investing $700 million in Oakville in Ontario. This investment marks a significant change for Ford that it secures the current employees in Ontario and makes Ford more competitive in Canada.  As the auto industry takes a big role in Ontario economy, the investment in auto company will  lower the unemployment rate in Ontario. Not only this investment is benefit for Ford, it also benefits the town, Oakville. Indeed, the town will be developed that there could be more jobs created for the people in Oakville. In addition, Ontario and the federal government also provide around $70 million each toward the investment in which auto industry is going grow in Ontario. 

 
Read more: http://www.ctvnews.ca/business/ford-investing-700-million-in-its-oakville-ont-plant-1.1461293#ixzz2h6YRO7db

http://www.theglobeandmail.com/report-on-business/ford-gets-boost-from-ontario-ottawa/article14327941/

Twitter is Going Public

In September 12th, 2013, Twitter released a tweet at 2 PM saying, “We’ve confidentially submitted an S-1 to the SEC for a planned IPO. This tweet does not constitute an offer of any securities for sale.”1

Indeed, Twitter is going public which may or may not gain profit for the company. On one hand, twitter gets the most mobile users which can help the company increase the number of advertiser and its revenue is growing year by year. On the other hand, twitter has zero profit since 2006 despite its increasing revenue. The uncertainty of online advertising market also exists that the advertisers are not fixed. In addition, Twitter concerns spam accounts that could result in a lower stock price.

Although risks and concerns exist, Twitter could earn profit through IPO because it has a strong reputation over the public. In fact, according to the video2 from the news, a penny stock which has the same symbol with Twitter “went from penny to five cents” when it is released on October 4th. This shows that many people would like to buy Twitter’s stock and thus it is a worthy management decision to let Twitter go public.

http://www.cbc.ca/news/business/twitter-announces-ipo-in-a-tweet-1.1704547

http://www.cbc.ca/news/business/twitter-ipo-details-raise-questions-over-financials-bots-1.1912936

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