Daily Archives: October 5, 2014

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Pepsi’s New Drink about to Launch on Amazon.com

The rivalry between Coca-Cola and Pepsico ignites again! In the next few months, the two biggest cola brands are competing to launch their new drinks with only natural sweeteners. In the pursuit of proposing a healthier alternative to their current drinks, Pepsi will be launching their Pepsi True drinks in Amazon.com later this month. The Pepsi True will contain sugar and stevia, a natural sweetener, with lower calories.

On the other hand, Coca-Cola is launching their Coca-Cola Life. Similar to Pepsi True, it contains sugar and stevia, and has fewer calories compared to the original drink. Unlike Pepsi’s 7.5 ounce cans, Coca-Cola life will be bottled in 8 ounce glass bottles. Both drinks will contain 60 calories.

These new drinks launched by Pepsi and Coca-Cola are efforts to combat the  concerns “about the high fructose corn syrup in regular soda as well as the artificial sweeteners in diet sodas”. In effort to maintain customer loyalty, Pepsi and Coca-Cola are adjusting its value propositions to the consumer demands. I believe that the first company to successfully meet the consumers’ needs with the winning recipe, in addition to an effective marketing campaign will be the winning company in the long run.

Works Cited
“Coca-Cola Launches “Natural, Healthier” Coca-Cola Life • Highsnobiety.” Highsnobiety. N.p., n.d. Web. 06 Oct. 2014. <http://www.highsnobiety.com/2013/08/21/coca-cola-lanuches-natural-healthier-coca-cola-life/>.
Press, The Associated. “Pepsi’s Natural Sweetener Version to Be Launched on Amazon.” CBCnews. CBC/Radio Canada, 02 Oct. 2014. Web. 5 Oct. 2014. <http://www.cbc.ca/news/business/pepsi-s-natural-sweetener-version-to-be-launched-on-amazon-1.2785555>.
Tripp, Mickle. “New Pepsi Goes to Amazon.” The Wall Street Journal. Dow Jones & Company, 01 Oct. 2014. Web. 05 Oct. 2014. <http://online.wsj.com/articles/new-pepsi-goes-to-amazon-1412207392>.

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Hewlett-Packard or Hewlett / Packard?

 

The multinational IT corporation, Hewlett-Packard, has reported that it will be separating into two companies this week. One entity will be responsible for the traditional business in PC and printers, the other entity will be providing software and services to corporate consumers. Such services include: computer servers, data storage devices, networking, software and services. This separation is a result of a major change in its operations, in particular in its operations management.

HP believes that the separation into two entities will enable “greater speed and agility” in its operations. Computer industry analyst, Patrick Moorhead, considers this change as a good idea and that “the benefits of moving at the right speed outweigh the cost savings.”

Since Meg Whitham (former CEO for E-Bay) took the position as CEO of HP in September 2011, HP shares have risen about 50%. Under her leadership, she has laid off at least 45,000 employees, saving HP $4.5 billion per year. Should HP split, Whitman would have leadership roles in both companies, and act as the CEO of the enterprise business and chairman of the hardware entity.

This is a perfect example of change revolving around operations management. Similar to Dell that transformed its business model to direct sales which resulted into substantial corporate savings; the separation of HP into two companies may maximize company’s efficiency for its operations, and many business analysts applaud this decision.

Works Cited
Hardy, Quentin, and David Gelles. “Hewlett-Packard Is Said to Be Planning a Split of Businesses.” The New York Times. The New York Times, 05 Oct. 2014. Web. 05 Oct. 2014. <http://www.nytimes.com/2014/10/06/technology/hewlett-packard-is-said-to-be-planning-a-reorganization.html>.
Journal, The Wall Street. “HP to Split into Two Companies, Report Says.” CNNMoney. Cable News Network, 05 Oct. 2014. Web. 05 Oct. 2014. <http://money.cnn.com/2014/10/05/technology/hp-restructuring-split/>.

 

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Companies using “Focus Strategy” – incorporating ethics for differentiation

When asked to name a few companies that uses the “Focus Strategy”, a strategy that targets a niche market by differentiation or cost advantage, a few companies immediately came to my mind. Such companies include: TOMS, Frog Box, and Ten Tree Apparel. All three of these companies uses the “Focus Strategy” by , targeting a very specific (narrow) market- consumers that uphold and value the importance of ethics.

TOMS

Founded in 2006, this shoe company is popular for its excellence in corporate social and environmental stewardship. The company adopts the “One for One” principle, “With every product you purchase, TOMS will help a person in need.” To date, TOMS has provided over 10 million pairs of shoes in over 60 countries, restored sight for 200,000 people in over 5 countries. TOMS has recently initiated a water project to provide clean water for communities in need.

Frog Box

Frog Box is a moving company that provides a cost effective and environmentally friendly alternative to using cardboard boxes for moving. The company rents out reusable moving boxes and supplies and does moving services at a competitive price. The company donates “1% of gross revenues to frog habitat restoration”.

Ten Tree

Ten Tree is an apparel company that strives to commit: stewardship, transparency, and community involvement. The company vows to plant 10 trees for every purchase made.

 

Works Cited
“Frogbox.” Eco-Friendly, Green, Reusable Moving Boxes. N.p., n.d. Web. 05 Oct. 2014. <http://frogbox.com/>.
“Ten Trees Are Planted for Every Item Purchased.” Tentree. N.p., n.d. Web. 05 Oct. 2014. <http://www.tentree.com/ca/?___store=en_ca>.
“With Every Product You Purchase, TOMS Will Help a Person in Need. One for One.®.” TOMS : One for One. N.p., n.d. Web. 05 Oct. 2014. <http://www.toms.ca/>.