Photo credit

High prices infuriated Netflix customers to the point that Netflix lost 800,000 subscribers. In this July to September period, Netflix’s stock has plummeted the most that any DVD by mail rental has since 1999. In response, Netflix decided to raise 400 million US from external investors by issuing debt and selling 2.86 million shares of stock. Analysts believe that fundraising is a sign for trouble ahead and predict that the stock price will fall from its current $69 to $45.  Netflix’s CEO believes fundraising will pay off; “It’s not that we need the money, but it’s always nice to have more money than you need,” quotes Netflix spokesman Steve Swasey.

It is evident that Netflix needs to change their current plan to increase their revenue. The increase in external investment in the company will lead to a loss of control of the company as each investor is credited voting rights. In addition, Netflix has failed to notice that their product is price inelastic. The raise in price discouraged majority of their customers. Instead of looking for payouts, Netflix needs to adjust their prices to accommodate their target market.

Netflix stock in free fall

Photo Credit: Nike Write the Future Timeline    

Nike and Adidas, the two largest rivals for soccer gear worldwide, implemented two very different marketing schemes to attract attention for the 2010 World Cup. Adidas became the official sponsor; the referees wear Adidas, footballs are Adidas-branded also televised ads for football apparel during matches was only for Adidas. Conversely, Nike used ambush marketing. Nike created a 3 minute TV commercial called “write the future” that featured the world’s best soccer players with an intriguing cliff hanger ending. Here’s a link to the commercial.

Nike Write the Future

The success of Nike’s campaign was indisputable. Following the initial airing of the commercial, followers of the Nike brand doubled in online media and the commercial was viewed by over 20 million people.

Adidas did not have close to as much success.  Everyone believed that the World Cup was sponsored by Nike. Nike’s profits rose by 30% whereas Adidas’ rose by 12%.

Although Nike’s tactic of ambush marketing is not as ethical as Adidas full sponsorship, it clearly worked out for them. From this, I believe it is evident that ambush marketing is a huge threat for companies to sponsor world sporting events.

The World Cup Brand winner: Adidas or Nike?

After reading an external blog, it is evident that the most prominent complaint against Lululemon is their supply chain problems. Complaints have soared in about Lululemon’s extreme lack of inventory as well as poor shipping processes.

Here’s a link to the external blog: Shipping issues

The shipping processes are a huge problem because of the fact that Lululemon advertises its ability to hem or personalize pants and ship them back to your home. In addition, the suppliers of Lululemon are unable to keep up with the increased demand for the product. It is evident that Lululemon must change its supply chain in order to accommodate consumers.

The fact that Lululemon flies through inventory may not necessarily be a detriment to the company. Lululemon will have a high stock turnover rate therefore will be perceived as innovative as they will constantly be displaying new fashions.

I believe that Lululemon needs to solve the transportation aspect of their supply chain management in order to satisfy customer needs. Conversely, I believe that if Lululemon wants to remain innovative it would be more beneficial to continue keeping a low level of inventory and keep replenishing new items into the store.

Inventory control

I find it astonishing how the sound of a name can justify your employability. I completely agree with Rachael’s belief that choosing English sounding names rather than foreign ones is an unethical business practice as well as a form of discrimination.

Here’s a link to Racheal’s post

This problem is somewhat inevitable. These types of discrimination happen in the workplace every day.  For example, men are typically hired over women just because companies don’t want to pay for maternity leaves. That’s just the way it is. In this instance the business does not want to have any sort of liability pertaining to the fact that their employee cannot communicate with the customers efficiently. Therefore, someone with a non-English sounding name gets stereotyped into being unable to speak English properly.

Businesses are somewhat “too harsh” in the weeding out process during hiring. Unfortunately for the business, it can allow them to overlook a perfect candidate for their specific position. Companies should not hire people based on their ethnic background, a company should hire someone for their quality of work, past experiences and by how qualified they are to the job.

Appnovation is a Vancouver based interactive agency specializing in developing websites and software application that can be ran on Blackberry, Apple and Android devices. Appnovation was founded by Arnold Leung, a 2007 UBC Sauder school of business graduate. Over the past few years Appnovation has developed relationships with MTV, the Ontario Government, the World Wildlife Fund and many more. Arnold Leung clearly fits the definition of an entrepreneur, as he is a person of very high aptitude who pioneers change. Appnovation is innovative, high risk, and profitable therefore fits all the criteria to be an entrepreneurship Appnovation’s innovation has led to new developments for applications for modern technology. Appnovation has generated profits as a rapid pace as they have already surpassed the 2 million dollar mark after less than 4 years of operation.

Here’s some links to learn more about Appnovation.

Youtube video: Appnovation

Appnovation Web