Kelvin Leung's Blog

Microsoft has announced its intent to close its instant messenger chat tool “Windows Live Messenger” in early 2013, and replace it with Skype’s messenger tool. After almost two years after its Skype acquisition in 2011, Microsoft is finally fully embracing its $8.5 billion Internet communication technology. Analysts have predicted that Microsoft will one day focus on Skype in order to move into the social media market, and eventually to the mobile computing market. Recent reports have suggested that the numbers Window Live Messenger’s users had fallen to 8.3 million in the US, representing a 48% on a yearly basis. Skype, on the other hand, had seen growth in the same period.

I think it is a poor move for the tech giant to focus solely on Skype. Although Window Live Messenger and Skype are basically competitors in the same company, they can still both be successful if they operate in different paths. By combining the two, it will be a merge of work and leisure. Window Live Messenger symbolizes leisure with the integration of games and other fancy applications into the program, while Skype shows the work aspect with stable communication network and cheap international calls. If Window Live Messenger joins Skype, Microsoft must then incorporate games to attract younger users, but risk losing business users in return. I personally believe that it will greatly benefit Microsoft if the two companies are to operate in different directions.

http://www.bbc.co.uk/news/technology-20222998

Over the past few weeks, the most talked topic within China revolves around the leadership change in the 18^th Congress. Xi Jinping was named the Head of China’s Communist Party and chairman of the country’s Central Military Commission. Right now, he is the most powerful man in China. From the title of this blog, the change appears to be good for the business side, but bad for political reform. How?

Compared to his predecessor Hu Jintao, Xi Jiping as China’s new leader will be quite different. In Kevin Voigt’s blog, he states that Xi Jiping is more of a conservative, meaning that there will be no “substantial or meaningful movement toward political reform”, but instead, China will focus on “maintaining political stability and defusing challenges to the party’s authority.” Also, Kevin Voigt explains that there will be economic reform. In other words, China will be more willing to open its market and allow more “foreign companies into the financial sectors.” Previously under Hu Jitao, there were heavy regulations for foreign companies and multinational companies were kept distances away. To worsen the situation, Chinese officials always have a widespread distrust of the motives of foreign companies. The change in leadership will definitely shred some light for foreign companies on their road into the vast Chinese market.

Link to external blog

http://www.bbc.co.uk/news/world-asia-china-20338556

In early April, social enterprise TOMS Shoes hosted an aware-raising event called “A Day without Shoes.” TOMS is basically asking its participants to not wear shoes for one day, in order to raise awareness for the millions of children who go without shoes every day in poor countries. A model for this social enterprise is the “one-for-one” approach. It means that for every pair of TOMS shoes purchased, TOMS is giving away a pair of new shoes to a child in need. By providing children with shoes, they can then go to work or school to better educate them. Shoes are clearly wanted and needed by the people TOMS is serving.

However for a normal customer that occasionally shops at TOMS, it isn’t much of a deal to pay extra dollars to get a TOMS shoes and help a child at the same time. They might be just buying the trendiness of the brand. Therefore, some criticizes that the program “dehumanizes poor people and set priorities for them”. Also, some argues that by giving shoes away, it will interfere with local shoe markets, and ultimately create more poverty. So is TOMS doing the right thing as a social enterprise?

http://www.huffingtonpost.com/kate-otto/toms-shoes-controversy-a-_b_1420366.html

https://www.youtube.com/watch?v=_4VN34iCi2Q&feature=player_embedded

In response to Frederick Wong’s blog on the implementation of the Smart Meters in BC, I can only say I completely agree. It is clear that there have been negative feedbacks from citizens regarding the mandatory installation of the smart meters at their own homes. Smart meters seem to provide fewer benefits for the people, but much more advantages to BC Hydro. Many citizens fear that the smart meters will act as a surveillance tool to record a person’s daily electricity consumption. The recorded information can ultimately translate into one’s personal privacy and activities.

I totally agree on Frederick’s point on the citizen’s disapproval of the smart meters, but would argue on his point of completely abandoning the project in BC. I believe that one of the biggest reasons that citizens are reluctant to install a smart meter is because of the lack of detailed information provided to customers. The public will be more willing to accept the smart meters if the functions and usage are explained in detail. Also, BC Hydro should allow the public to opt-out of the smart-meter program, or maybe even provide other alternatives, for example Energy Aware’s PowerTab. Until then, it may be “unwise” for Energy Aware to steer clear of British Columbia.

Frederick’s blog

https://www.youtube.com/watch?v=cuMEJxewP-E

The World’s largest coffee shop operator, Starbucks, is looking into expanding its business beyond the coffee sector. Yesterday, Starbucks Corp. announced an agreement to buy tea store chain, Teavana Holdings Inc., for about $620 million. Starbucks is willing to pay Teavana investors $15.50 per share in cash.

Starbucks has already bought the Tazo Tea brand in 1999. Over the years, Tazo Tea sales generate about 1.4 billion per year. With the evidences of Tazo Tea and recent buying of Teavana, there is definitely a popularity trend of tea as a beverage. Tea is the second most consumed beverage in the world. According to Starbuck’s presentation, this $40 billion global market is growing at around 10% per annum. I personally believe that Starbucks’ purchase of Teavana is clearly a great move. This addition not only provides an increase of 1.7% in Starbuck’s annual revenues, it also has the potential to expand rapidly. One opportunity is for Starbucks to expand into China or India for future growth, as reports have shown that both countries have middle classes that drink more tea than coffee. Starbucks could also increase cross selling of Starbucks goods with Teavana, and as a result, boost tea beverage sales in Teavana’s stores across the nation.

http://www.bloomberg.com/news/2012-11-14/starbucks-to-buy-teavana-for-620-million-to-add-tea.html

Selina Ho recently blogged about the privacy concerns regarding the company “Urthecast.” One of the unique aspect of Urthecast is the real-time social layer the company promises to integrate onto their website. This feature allows other users to see the uploader’s location, current activites, and personal information.

I personally agree with Selina on her argument about the privacy issues with the social media proposal. Some people, for example myself, do not feel comfortable with strangers knowing my whereabouts and activities. During the class presentation from Mr. Wade Larson, he personally described his experience of knowing what the person down the block is listening to, or what the man three blocks down has tweeted ten seconds ago. It was a frightening thought. In order to minimize the privacy concerns, Urthecast should allow the users to choose who can see what they post, and know their locations. Instead, the company should approach a similar system as Facebook, where users are given the options to change their whereabouts, or even disable the location option.

Selina’s blog