Joseph Liu's Blog

Once boasting a share price of $149.90, it’s all-time high, Research In Motion (RIMM) has seen its share price stumble constantly over the years to it’s current trading price of $7.88. RIM is in desperate need of a revolutionary facelift to turn things around, as both investors and consumers alike have slowly lost confidence in their products. Will BB10, their new operating system which has already been delayed multiple times, be the game-changer that allows RIM to once again compete with tech giants such as Apple and Samsung?

Is this the revolutionary product RIM has been waiting for?

Ryan Wakabayashi seems to believe that the success of BB10 can possibly catapult RIM back into relevancy. Although the release of BB10 would definitely be a popular product among consumers, it cannot compete with other smartphones as it has lost it’s sole Point of Difference. One of Apple’s many simple, yet elegant products: the iPhone, has a cult-like fan base. Combine that with Apple’s introduction of iMessage, the equivalent of BBM, the Blackberry loses its uniqueness. As BB10 seems to be lacking in revolutionary features, it is unlikely that RIM will reach the same level of success they did in 2008.

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Ryan Wakayabashi’s

“RIM Stocks Rise as Blackberry10 Shows Promise”

In the world of sports, everyone is extremely competitive and the desire to be better than your competition is what ultimate drives you to reach your potential. Therefore, when a product backed and worn by many professional athletes such as Kobe Bryant claims it can magically “improve strength, balance and flexibility” it is sure to draw hordes of attention.

$100 for 10 stickers. Sounds about right.

At first, people bought into the idea because the concept was so mysterious; the hologram contained in the wristbands are supposed to be set with a special frequency that changes and harmonize the natural frequency of your body, thus ‘improving your athletic ability’. The company was making big bucks through this clever marketing scheme, I even went out and bought one for $45, an extremely stupid decision on my part. The company ended up earning $52 million in revenue during its peak year, which is incredible feat for something as simple as a wristband scam.

However, once Power Balance was exposed by the ACCC that they had no research to prove that their product could provide positive benefits, they faced much scrutiny. Following this, Power Balance was forced to declare the truth to the public, by admitting that they engaged in “misleading conduct”, and then provided full refunds to any customers who felt they had been deceived and eventually bankrupted due to the countless lawsuits.

Notice how the $122 piece of silicone is “Out Of Stock”

Even though the brand can no longer be seen in the positive light,their combination of clever marketing schemes and  relatively capable management allowed them to succeed for quite a while. The makers of Power Balance were able to sell worthless pieces of plastic and earned millions of dollars of revenue, which demonstrates their mastery in doing business. Although their behaviour is highly unethical, the brand is a prime example that all you need is a intuitive or revolutionary idea to launch a successful business venture.

Neither the players or the management will benefit financially from a prolonged lockout

When Gary Bettman, the commissioner of the National Hockey League, recently announced that the lockout would result in the cancellation of the opening 82 games of the regular season, it is an understatement to say that it had a devastating effect on numerous hockey fans. Although a lost season may be a frightening prospect for fans, the teams, and ultimately their respective cities will most likely experience even greater ‘visible’ damage.

The league’s revenues are taking a monumental hit due to the lockout. Bill Daly, the deputy commissioner, has recently discussed that the league has already lost roughly $100 million dollars in revenue in just the cancellation of it’s preseason games. The team’s themselves are only a few of the many who are currently affected by the lockout. In addition to those directly related to the NHL, the neighbouring stores near the arenas will also be affected. Local businesses may suffer if they depend on traffic that passes through their shops on game days.

Vancouver Sun gives these observations about union meetings, there was “little to discuss, the meeting ended quickly and left both groups frustrated”. At this point I believe that neither the player’s union nor the owners can benefit and ‘win’ the lockout, as both sides has lost a significant amount of revenue in addition to the loss of support from their fans.