Monthly Archives: October 2014

Resisting the Northern Gateway Pipeline

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The greatest danger to the Northern Gateway pipeline is in the Pacific Northwest. The Haisla First Nations have rejected Enbridge in using their land for the Gateway. The Haisla First Nations have allowed a liquefied natural gas pipeline on their land in the past, receiving a total of $60 million in return. The unique aspect of this story lies in the fact that the Haisla First nations are not business-uncanny; they are, however, strongly opposed to crude oil. Enbridge, the backer of the pipeline, is in a very difficult situation. They are dealing with a party that is willing to do business with them, but one that is not willing to adhere to the environmental aspects of their deal. In this instance, I do not see an easy way for Enbridge to create a win-win scenario. As the Haisla First Nations claim, “no amount of money can buy support” it appears as though Enbridge is a stand still. However, Enbridge could still argue the legality and logistics behind a project being diverted due to the national, environmental, and financial interests of the Haisla First Nations, they could still carry through with the project. Now Enbridge must ask themselves, at what cost to the Haisla Nation are they willing to go through with the Northern Gateway Pipeline?

Starbucks Express Cafe’s Response

In response to Evan’s post, I would agree with his insight and foresight regarding Starbucks’ launch of the “Express Cafe”. Eliminating one of their key factors that turns away customers- long lineups- looks like it will increase their sales without question. However, Starbucks must take into account the number of customers that purchase their “higher end” drinks that are not provided at express stores. The article suggest that customers are attracted to quicker service, but does not state that they are willing to give up their higher end drinks to reduce wait time. One would assume that a company that has such strong business operations would want to create market research before entering an untested market. Whether it is through customer surveys, or any other forms of statistical analysis, I would highly recommend that Starbucks weighs the benefits and setbacks of opening stores of this nature. I advise Starbucks to proceed with caution while opening express coffee stores, and to carry out this new business model slowly. Fortunately, Starbucks has the necessary capital to venture into an untested market without needing to worry about financial disaster. It is crucial that they ask themselves if customers are willing to sacrifice variety for shorter wait times.

Source:

Joe On-the-Go: Starbucks’ New Express Cafés

Blackberry’s Lifeline

Blackberry has found a lifeline. The release of their newest phone, the “Passport”, received mixed reviews from critics. The product release of the Passport ultimately rebranded Blackberry as a niche company that is strictly enterprise focused. Some say this “re-branding” has allowed Blackberry to competitively reposition themselves as a leader in a smaller share of the market. However, Blackberry’s new approach to tackling the phone industry is predicted to be short term.

Blackberry CEO, John Chen

Blackberry CEO, John Chen

If Blackberry is able to continue to position themselves as the industry leader in enterprise focused smart phones, I believe they will be able to control a large portion of the mobile-phone-enterprise market share for an extended period of time. It is crucial that they continue to focus on their points of difference rather than their points of parity. By focusing on their differentiating factors from other smartphones, Blackberry will be able maintain a competitive edge from competitors. Blackberry’s previous “melt-down” was the result of their inability to continue to innovate and remain assertive in their given market. Learning from their past mistakes, and managing expectations- acknowledging that they will own a larger portion of a smaller market- will allow Blackberry to rebrand their company  ultimately leading to growth.

Sources:

Silcoff, Sean. “Passport Sales Bode Well for BlackBerry, Analyst Says.” The Globe and Mail. 29

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