source: https://huesofasoul.files.wordpress.com/2014/10/game-of-thrones.jpg

A recent article by Issie Lapowsky titled “Down With Cable! Why HBO is Finally Launching a Standalone Streaming Service” highlights the difficulties cable companies face in their quickly changing industry. The article indicates that HBO would gain more viewers by establishing a streaming service, as many consumers see HBO as “one of the last remaining reasons to stick with cable” (Lapowski).

This decision, and the fact that it is highly beneficial for HBO, demonstrates to me the shift in power away from Cable networks due to cost leadership strategies, superior value propositions and effective substitutes provided by competitors. Netflix, for example, provides a massive variety of television programs for $8 every month, a rate that is substantially less than the $120 monthly fee charged by many cable companies. A poll presented in Lapowski’s article indicates that most participants would pay $12 every month gladly for an HBO streaming service, as that is still 10% of what they pay for cable (Lapowski).

In terms of value propositions and substitutes, I think the high cable rates has encouraged many companies to create cheaper and easier means for consumers to watch their television programs. I can find most programs online for rates far bellow those of the cable company without compromising quality. I predict that this competition will likely prove to be the end of many cable companies, unless they manage to establish a new system that is able to better compete with these internet providers.

Source: http://www.wired.com/2014/10/hbo-streaming-service/

source: http://www.vancouversun.com/technology/cms/binary/9284863.jpg?size=620x400s

In the CBC News article, “Skeena River First Nations Oppose Petronas LNG Plant Near Prince Rupert“, the First Nations argue that their fishing will be greatly affected by the new plant on Lelu Island proposed to be built by Petronas LNG. I am unable to take a side in regards to this conflict, as both parties have valid arguments supporting either the construction of the facility or lack there of.

On one hand, not only do the First Nations people obtain much of their food from the salmon that would be affected by the construction, much of their wealth would be affected as well, as the buying and selling of animal-based goods is significant in their culture (CBC). I think many of the small businesses in that region would be greatly affected by the construction of the factory, which would have a negative impact on the economy in that region.

Despite this, the construction of the plant would likely have a positive impact on our national economy. In addition, the land being considered is distant from the land inhabited by the First Nations in opposition of the project. I think this emphasizes the blurred lines in terms of what rights they have with regard to the land in British-Columbia and how much power they have a right to in land development projects.

The results of this conflict will definitely have a large impact on the economies of different regions, but who would pay the greater price?

Source: http://www.cbc.ca/news/canada/british-columbia/skeena-river-first-nations-oppose-petronas-lng-plant-near-prince-rupert-1.2824967

Source: http://fitwellssu.files.wordpress.com/2011/02/grocery-store-lg.jpg

In an online article titled “Online Recipes Will Soon Have a Button That Sends You the Ingredients” by Issie Lapowski, what could very well be the future of grocery shopping is explained. The company Chicory allows recipe suppliers to add “a ‘Get Ingredients’ button at the bottom of a recipe” (Lapowski). The company then automatically adds certain brands (by whom they are paid for priority) to the shopper’s cart and is delivered to them in the near future. Though the consumers are able to switch away from a brand suggested by Chicory, the advantage given by Chicory is more so than a grocery store, where customers compare products before picking one to add to their shopping carts. What interests me about this business, however, is more their value proposition and customer segment which has been brilliantly thought out. The company allows customers to pick their meals for the week (on the recipe site) and order the ingredients for these meals without leaving the web page. The value proposition reduces the pain of leaving the house to buy groceries, provides an easy way to organize meal plans in the short term and also allows food brands to pay for an incredible advertising opportunity. I could see companies such as Chicory doing very well in many cities in North America.

Source: http://www.wired.com/2014/10/chicory/

In Dorothy Pomerantz’s article, “How to get more people into movie theatres (without higher ticket prices)”, the difficulties of the theatre industry in response to the easier and cheaper at-home experience are analyzed. It is explained that many theatres are looking for any excuse to “boost ticket prices” in order to maintain profits, though this is discouraging many customers further due to the financial savings of simply watching movies at home (Pomerantz). The article then refers to the Belgian company Barco, which is creating theatres with three screens and selling time for companies to develop short films to play on them as opposed to rising ticket prices. These theatres are also being used to watch video gamers and concerts throughout the week, when movies are not as popular. This strategy reminds me of Rita McGrath’s article, The Transient Advantage, in which it is argued that in order to maintain a strategic advantage, companies must always be innovating. It is also argues that there are no long term strategic advantages in modern times. I think the movie theatre industry is beginning to be left behind by technological advances and because of the internet, and increasing their prices for small added benefits will not help them. Barco’s strategy to alter the experience in a unique way is an example of what movie theatres should be doing, as it demonstrates innovation and adaptation with the times.

Source: http://www.forbes.com/sites/dorothypomerantz/2014/09/30/how-to-get-more-people-into-movie-theaters-without-higher-ticket-prices

Source: http://pandorf.files.wordpress.com/2012/01/scr-10.jpg