Image from: http://financialpostbusiness.files.wordpress.com/2011/10/1006tims.jpg?w=620

Tim Horton’s recently added beef lasagna casserole to its lunch menu, hoping to gain some market share in the lunch market.¹ It is also offering garlic bread, along with larger portions of its soups and chili. According to Donna Finelli, director of brand marketing for Tim Hortons, it was a “natural fit” among Tim Horton’s other comfort food offerings of hot chocolate, coffee, doughnuts, and soup.¹ Currently, Tim Horton’s is first in the breakfast market and second in the lunch market, behind McDonalds.¹

Image from: http://i.huffpost.com/gen/378944/thumbs/r-TIM-HORTONS-PASTA-large570.jpg

Although Tim Horton’s is trying to differentiate amongst other fast-food chains by offering a known Canadian comfort food, this tactic does not seem to offer Tim Horton’s a significant competitive advantage. True, lasagna cannot be purchased from competitors such as McDonalds and Starbucks, but what is stopping consumers from eating pasta at major pizza chains like Pizza Hut or Fresh Slice? Existing customers may try Tim Horton’s lasagna and new consumers may try its other products; however, one new product alone is not sufficient to truly distinguish Tim Horton’s from other fast-food restaurants. After all, other fast-food chains are also introducing new products. In the end, it boils down to taste preferences, competitive prices, and convenience.

Word Count: 199

1. http://www.thespec.com/news/business/article/610643–hortons-goes-heavy-lasagna-now-on-the-menu

Mattel Inc., the producers of Barbie, was targeted by Greenpeace in June for using packaging from Asia Pulp and Paper (APP), a company that clear-cuts rainforests in Indonesia¹. The “Barbie, it’s over” campaign gathered much attention, with consumers participating online via Facebook, Twitter, and other channels. Consumers also sent over half a million emails to Mattel requesting that its products be manufactured without harming the environment.

Image from:
 http://www.greenpeace.org/international/community_images//84/2284/28373_55576.jpg

In October, Mattel responded Greenpeace’s campaign and consumer demands with a set of sustainable sourcing principles. “By the end of 2011, 70 percent of Mattel’s paper packaging [will] be composed of recycled material or sustainable fiber.”² In appealing to consumer protests, Mattel, the world’s largest toy company, has succeeded in reworking its image as an environmentally-conscious company.

Greenpeace’s successful campaign is an example (and warning) to other companies, showcasing the importance of corporate social responsibility. Consumers are making increasingly sustainable choices, and it makes business sense to appeal to this growing market. Companies like APP need to rethink their impact on the environment and how this translates into sales. Mattel was not the first company to turn away from APP’s products, and it won’t be the last.

Image from:
http://www.greenpeace.org/international/community_images//84/2284/28320_55462.jpg

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1. http://www.triplepundit.com/2011/10/mattel-greenpeace-app/#
2. http://investor.shareholder.com/mattel/releasedetail.cfm?ReleaseID=611230

Apple’s iPad is currently dominating the tablet market; however, this can change with Amazon’s release of the Kindle Fire. Available on November 15, the Fire has been predicted to surpass the iPad in first-month sales.¹ For only $199, the Fire offers a 7 inch coloured touchscreen, 6 GB of free space, unlimited storage on Cloud, more apps than Apple, and immediate access to Amazon’s online store.  It is an affordable alternative to the $500 iPad and other similarly priced tablets.

Image from: http://www.tech2date.com/wp-content/uploads/2011/10/Apple-iPad-Vs-Amazon-Kindle-Fire.jpg

The low price point has also sparked a debate regarding if Amazon will earn a profit from the Fire.² UBM TechInsights has predicted a manufacturing cost of $150, whereas others estimate a loss of $10-50 per unit. Some are even speculating that Amazon’s only profits will come from sales on Amazon.com. More accurate cost calculations can only be made after the Fire’s release.

The Fire is the first of its kind to bring the shopping experience to the consumer. It is a brilliant business scheme, as consumers are paying (for the Fire) to buy more (from Amazon.com). If Amazon’s online store remains priced competitively, Amazon will widen its consumer base and see an increase in sales through the Amazon marketplace.

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1. http://www.foxnews.com/scitech/2011/10/09/5-reasons-amazon-kindle-beats-ipad/
2. http://news.cnet.com/8301-1023_3-20114722-93/amazon-kindle-fire-profit-or-loss-for-retailer/

Video from: https://www.youtube.com/watch?v=ryat012X8Qc

Priscilla Wito’s blog on Aakash, the world’s cheapest tablet, emphasized on how Datawind—the company behind the Aakash—is seeking to “push India forward,”¹ by providing affordable technology to students. With a student price tag of $35, the Aakash has a 3 hour battery life, web browsing, video conferencing, and two USB ports.²

Image from:
http://www.thehindu.com/multimedia/dynamic/00803/09TH_AAKASH_803535f.jpg

Priscilla linked the Aakash with the Tata Nano, previously discussed in class. My question is: Will the Aakash suffer the same fate as the Tata? As stated in class, the Tata did not remain popular in India for long.

As income increases, consumers tend to purchase better, more expensive, products. As a result, sales for the Aakash might decline drastically after some years. How will Datawind combat this issue and remain profitable? True, it can offer a progressively more expensive, better quality product with more features; however, if consumers are going to spend more money, wouldn’t they then choose to buy on the basis of brand, as well as quality? As with Priscilla, I agree that Datawind has taken a good initiative in offering widely accessible technology with the purpose of enhancing student learning… I just do not see how this business venture can remain sustainable.

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1. https://blogs.ubc.ca/priscillaw/2011/10/09/datawind-makes-affordable-technological-access-in-india/
2. http://www.bbc.co.uk/news/world-south-asia-15180831

Image from: http://walmartstores.com/pressroom/news/6811.aspx

Since 2003, Wal-Mart has invested $3 billion into advanced inventory tracking technology.¹ Using radio frequency signals and microchips, Wal-Mart can now track its inventory in real-time.

Then, in September 2011, Wal-Mart realized, from the data they had collected throughout the years that consumers tend to spend more money “at the beginning of the month, when many people are paid, and… [less] at the end of the month when they run out of money.”² This trend shows that many people are living pay-cheque to pay-cheque. To stay competitive, Wal-Mart then decided to offer more inexpensive products.

Wal-Mart is using business information systems (MIS)³ to track consumer trends and adjust their offerings to better cater to their customers. Furthermore, they are also taking advantage of their MIS to experiment on offering high-end merchandise aimed for higher-income families at one of their test stores, named “Urban 90.”

Wal-Mart has proven that the information provided by MIS is invaluable. It has a competitive advantage over other retailers in that Wal-Mart can use real-time data to quickly respond to changes in consumer behaviour. Other retailers should do the same, as MIS can be used to both improve a company’s offerings and expand its customer base.

Word Count: 200

1. http://news.cnet.com/Wal-Mart-puts-big-bucks-into-tracking-tech/2100-1008_3-5104493.html
2. http://www.theglobeandmail.com/report-on-business/economy/wal-mart-cashes-in-on-income-gap/article2166522/
3.  http://mis.sauder.ubc.ca/