Archives: October 2014

Mountain Equipment Co-op (MEC) – an absolute change in strategy?!

Source: http://strategyonline.ca/wp/wp-content/uploads/2013/09/MEC5.jpg

MEC is a store that displays a sprawling selection of products of outdoor categories such as hiking, biking, etc… Currently, it has been re-positioning its focus and message of having an active lifestyle by segmenting each activity in store with a set of motivations and aspirations. I think that this is an effective method in appealing towards the customers because it has considered the different perspectives of many consumers in terms of how they view the products. In relation to the value Proposition canvas, these motivations are what will help the customer’s get the job done which is being healthy and feeling good about their lifestyle. I think the ability to not just showcase the products but also convince them the products is needed for them is definitely a great strategy because it positions the products in the consumer’s minds in the way that they should view it. It creates customer gains by helping them view it in a positive light rather than a negative light and gives them an inspiration to actually do the activity.

Therefore, the effect in improving its positioning of the products will be extremely large because it will potentially secure a strong customer base and help generate more revenue.

Source: http://strategyonline.ca/2013/09/19/mec-uses-consumer-motivations-to-inspire-a-rebrand

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Target Segment vs Differentiation – which explains better?

According to Kristy’s post about HMV music stores VS online stores, I totally agree with her that due to technological advances that online stores is the easiest and most convenient ways to get music. However, I would like to add on the fact that music stores is not able to compete with online stores is also due to its small target segment

Although online stores are the most efficient way to get music without going out to buy albums, the customer segments which is being targeted here are those that do have access to the internet, specifically for teens till the early 30s.  However, for music stores such as HMV’s customer segment would be those who do not have access to the internet and still has passion or love in collecting CDs and albums for their own personal collection mainly those in their early 40s and 50s. Therefore, identifying a customer segment is one of the important aspects before it can be compared.

Noting the difference in customer segments, Online stores tend to be more popular because most people nowadays have access to the internet with the ability to get the music with just a simple click. However, Music stores tend to lack popularity because they are simply outdated due to the change in consumer trends and new technology. Although this may be true, online stores tends to be overpowering because the target segment tends to be larger in size and comprises a larger part of the population as compared to the target segment of music stores.

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First Nation Partners – an Obstacle?

One of the main problems with partnerships is the idea of internal conflicts which is where one decision will not always and cannot satisfy all the partners because each partner has conflicting opinions. This was demonstrated with the decision of implementing BC Hydroelectric megaproject. Every choice always has a trade off just like how every decision has its pros and cons. In this case the choice is either building a 1100 watt generating station or losing fishing and hunting opportunities and land for ceremonial purposes. As a result, getting to an agreement is very hard to come about mutually between many partners.

In this instance, it may affect the business model for the energy industry in charge of building the dam. An industry that solely depends on long term projects to earn substantial revenue and has planned for construction is at halt by the partners may lead to higher costs when switching to other projects. This is because energy industries tend to be seen as mega scale meaning that its fixed and variable costs would already be very high in order to provide electricity for the general population. Moreover, the time and money that is placed into planning for the project is wasted especially when resources could be useful elsewhere.

Therefore, the inefficient use of resources always leads to higher costs and this may be a problem especially during partnerships because a project cannot move forward unless getting a confirmation and so costs increases every minute time is wasted.

Sources:

http://www.vancouversun.com/news/First+Nation+chiefs+stage+Site+showdown/10215965/story.html

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