Monthly Archives: October 2017

The cost of change.

Being the largest global producer of the ponderosa pine tree, Prineville operates in a traditional economy as most residents are long-term locals as “everybody had a job, and everybody did well”. But, this specialization in workforce came to a halt as the federal government restricted the process of logging as an incentive to increase animal protection.

[Prineville has attracted large data centers from Facebook and Apple — but they use so much power that may not leave room to add anything else]. (2017, January 30). Retrieved October 29, 2017, from http://www.oregonlive.com/silicon-forest/index.ssf/2017/01/prineville_is_running_out_of_e.html

As governmental control surged a dramatic decrease in quantity demanded, the excess supply of employees caused for an exponential increase in unemployment rates as it peaked at 23% in 2009. From losing their point of different as the world leader in ponderosa pine production, in relation to the business canvas model, they simultaneously disorientated from their only revenue stream.

In the midst of economic uncertainty, Prineville received an email from the company “Vitesse” as they proposed a business deal, a deal that exhibited great potential to boost the financial dignity of the city. Unknown to the citizens of the municipality, this undercover “Vitesse” happened to be the company with “the big finger with a thumb-up sign”, Facebook. The deal that would then become Prineville’s saviour was the expansion of Facebook as they gained their first data centre.

As the viral corporation scouted for a location in which would best suit their interest, Prineville locals showcased the characteristics of their land that would become competitive advantages in their solution to Facebook’s problem. In the context of entrepreneurs whom want to persuade a potential customer (like that of Prineville), this method of self-marketing unique characteristics is significant for gaining competitive advantage as it better integrates your business in the customer’s decision journey where numerous substitutes are available for customers to choose an alternative solution.

[Facebook Prineville Data Center, Prineville, OR. Photo by Alan Brandt]. Retrieved October 29, 2017, http://www.locus-studio.com/?page_id=1776

[Facebook Prineville Data Center]. Retrieved October 29, 2017, from https://www.dpr.com/projects/prineville-data-center

In addition, the city differentiated themselves via having a hypothetically efficient ‘customer service’ as they responded to Facebook’s questions day and night. This therefore solidified their relationship with the customer as they had a dependable channel of communication, consequently increasing their reputational reliability. This correlates with the concept we learnt in class as “everything communicates”.

Although not necessarily a point of innovation by Prineville, I would argue that this case is indeed an example of a sustaining even which caused disruptive effects in the perspective of Prineville. While this event helped Prineville receive immediate financial stability, it came at a cost for it’s locals. As businesses within the area grow, the economy also rises, therefore giving pressure to residences to have to conform to the high living standards and costs of the city (e.g. the rising costs of housing). This event also endangers Prineville’s niche as the city manager reports “he knows they have to risk changing Prineville in order to save it”, therefore showing that there is always a cost involved with decisions.

Reputational marketing.

Harvey Weinstein, film mogul, co-founder of the Miramax Films Corporation, The Weinstein Company, and the man whose films received more than 300 Oscar nominations while winning 81. Harvey Weinstein, the man who exploited his influence on Hollywood by sexually harassing prominent actresses, including those of Angelina Jolie, Gwyneth Paltrow, Rose McGowan and Ashley Judd to just state a few within his extensive list of victims. While the New York local may have a highly adorned resume, embellished to the state in which he was once addressed as “God“, as the famous saying goes, “you’re only as strong as your weakest link”.

[Harvey Weinstein expelled from Motion Picture Academy]. (2017, October 14). Retrieved October 15, 2017, from http://money.cnn.com/2017/10/14/media/academy-weinstein-academy/index.html

As documented in Steven Sam’s blog (my Comm101 classmate), he details that “if a company has a human aspect to it, then a consumer is more willing to learn more about the company”. This therefore displays the creation of an engagement that customers can grasp onto to create an emotional and somewhat personal attachment with, therefore helping the business become more memorable in the perception of the customer (a big advantage that every business strives to successfully gain).

Although marketing is often associated with the category of commerce, it is also applicable in the context of everybody’s general lifestyle via the term ‘reputation’ as people hypothetically market themselves to others on a daily basis, therefore causing an explicit link between the business concept and the general public.

As we learnt in class, “it is critical to note that marketing happens without intent. Everything communications”. In the context of Harvey Weinstein, his failure to recognise this link and correlation between his actions and possible repercussions caused for him to be expelled from The Academy of Motion Picture and Sciences (the organization behind the Oscars), stating they “voted well in excess of the required two-thirds majority”.

[Travis Kalanick resigns as Uber CEO]. (2017, June 21). Retrieved October 15, 2017, from https://www.theverge.com/2017/6/21/15844836/uber-ceo-resigns-travis-kalanick

[Uber losses would have ranked near top among public companies in 2016]. (2017, April 17). Retrieved October 15, 2017, from http://www.marketwatch.com/story/uber-losses-would-have-ranked-near-top-among-public-companies-in-2016-2017-04-14

This harsh reality was also experienced by Travis Kalanick, founder of the transport company Uber, as “shareholder revolt made it untenable for him to stay on at the company”, with a major catalyst of this revolt being similar to that of Harvey Weinstein’s situation as Uber utilizes and exercises unethical business approaches, e.g. the sexual harassment of female employees and the disparity of treatment between the executives of the business versus those lower down in the company’s hierarchy.

As Uber is a company (versus the issue with Harvey Weinstein), we can logistically witness the effects of having a negative reputation despite having a product that effectively satisfies the value proposition block of the business model canvas (solving the customers problem of transportation). In financial terms, it is documented that Uber lost approximately $3 billion last year, therefore explicitly showing the mass effect of having bad marketing, whether intended or not.

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