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Comm 296

Virgin Galactic Fly High

I still remember as a kid, lying down on the grass watching the night sky. I was amazed by the sheer size of the universe and how each glimpse of light could be a planet, a star, or even a whole entire galaxy. I had a sudden realization how minute we are compare to such beautiful objects hanging in the night sky. I wondered as a kid if I will be able to go a step closer to the space and see the stars that I dreamt of. In a recent blogpost by natures.com, Virgin Galactic scored a contract for NASA’s research programs which will bring additional funding to Virgin Galactic to continue its development of the spacecraft. The future of the company looks very promising. You might wonder, how is company so successful in building its client base to seek funding for its program?

In March of 2010, VSS Enterprise of Virgin Galactic completed her maiden flight. This was a major step for the company and the possibility of space travel in the near future looks promising. According to the Virgin Galactic website: A flight costs $200,000, and deposits start at $20,000. When a client pays the deposit, they become a member of “the world’s most exclusive club with privileged access to all aspects of the project as it progresses”.

Virgin Galactic attracts its customers with very unique marketing campaign and strategy and make them feel they belong to a very exclusive and elite class that something money alone cannot buy. Virgin Galactic uses niche marketing, targeting a very elite class of clients. For the maiden flight of its fleet, only hand picked clients are invited to the viewing where the majority of the media were blocked. The clients were flew to the future site of the spaceport by helicopters for the viewing and were treated like astronauts. The company gave the clients a tour of the facility, the build of the spacecraft, as well as make go through some training of an astronauts to not only train them for the space experience but also to build the hype for the day of the real flight into space.

So far over 500 people have paid the deposit and willing to pay $200,00 for a few minutes of weightlessness including actor Ashton Kutcher who is the 500th astronaut. Despite the high development cost, Virgin Galactic is also to find funding through unique marketing strategies to attract customers, allowing its dream fly high into the clouds.

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Comm 296

A bite out of Apple

When it comes to electronic gadgets, I have always fallen in the late majority group in adoptation. This was no different for the ever so popular Apple product line. Even today, I am still hesitant to put my hands on Apple products because of its limited compatibility.
In 1995, Jobs was reinstated as the CEO of Apple and returned to his office after being voted off 12 years ago. Ignoring the criticism around him, Jobs successfully repositioned Apple by concentrating his effort on the development of the iMac and re- launching Macintosh. Apple focused its marketing campaign on the simplicity of their product which initiated its amazing journey as Nicole mentioned in her blog. From the day Jobs returned to Apple until his recent passing, the company’s share price soared 10,953%. The company continues to rapidly expand all around the world, targeting new international markets such as China.

While Apple has all the things going right, I am not without my concern for the future of Apple. The reason why Apple failed back in the early 80’s when it first launched its Macintosh computer is due to compatibility issues, which still stands today. In trying to create a unique product, Apple developed its own software, the Macintosh, for its product line. This was a great idea since consumers will need to buy their product regardless of whether they want the software or the hardware. This created a monopoly in the market which differentiated Apple from other computer giants.

However, this differentiation caused many negative user experiences as software developed by other companies were

not compatible on the Macintosh. As a Mac user myself, I had many unpleasant experience in transferring files from a Mac to a PC. Files have to be extracted and converted before it can be accessed on a PC, which is a painstaking process. The impracticality of Apple’s products will inevitably hurt the customer relationship and soon the consumers will lose patience and trust.

To encourage the expansion of their customer base and to meet the demands of existing customers, Apple needs to adjust its value proposition to increase the flexibility of their products to accommodate and yet challenge the technological advancement of their competitors to keep its leading edge.

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Comm 296

A Rocket with no Fuel

Honda introduced its dexterous and sporty hybrid coupe, Honda CR-Z, in January 2010. The new model combines the ever-so-popular hybrid technology and elements of a sports car. The result is almost a replica of the famous Honda CR-X from the 1980’s, a two seater and somewhat fuel efficient coupe that is without the horsepower. Wait a moment… is this a sports car inspiration or another smart car with a lengthier frame?

The CRZ delivers a modest 124 horsepower with its 1.5 four cylinder engine. The average American family car comes in at about 200 horsepower. Although the CR-Z is a two seater and supposed to be lighter, when its battery runs out and fails to deliver extra power it becomes an “overweight Fit”. A sports car with less horsepower than the average family car? I don’t think so.

Now lets talk about the eco-friendly button on the car which Honda is very proud of. CRZ delivers a well-respected 31 mpg in city driving. However, in comparison to the Toyota Prius’ 51mpg, the answer is clear. Why buy a two seater when you can get “more for less”?

Honda is making the same mistake as Tata did with the Nano. The idea is great especially for auto buyers in crammed countries like Japan and Taiwan, but in North America where the travel distance is much greater and where we generally have a larger family, there is no way we can fit passengers into an oddly designed trunk compartment.

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