Wal-Mart = Fair?!?

To the surprise of everyone, Wal-Mart announces that it will start selling custom made handicrafts by female artisans on the website. It is a very strange venture, since Wal-Mart is traditionally associated with big discounts and bulk products, not art. It is also attempting to set up programs ensuring that women will get paid fairly and attempt to improve their lives. Immediately, skeptics quickly start analyzing Wal-Mart’s motives.

 

Many say that Wal-Mart is doing it for brand image reasons, or even just to enter in a new market where they can attract clients that would appreciate art as oppose to cheap clothing to increase profits.

In the end, they are probably goals that Wal-Mart would like to achieve. Still, this can be an opportunity for Wal-Mart, as the risk can allow the company to elevate the brand in many consumers’ minds. However, since this new market is completely abstract and detached to their usual business model, there is a great risk, which is probably why Wal-Mart is launching this collaboration on their website as oppose in their store fronts.

Picture URL:  http://phillyjwj.blogspot.com/2011/01/walmart-we-cant-afford-it-in-our.html

Exceeds All Expectations

Many are disappointed with the arrival of IPhone 4S instead of an iPhone 5 and prophesied that sales would be low due to it failing to dazzle the world; Apple makes a huge comeback when pre-ordering of iPhone 4S skyrockets. In fact, Apple has to close down presales because an estimated half a million phones have already been sold.

Still, it begs one to question why a phone that looks and acts very similar to its immediate predecessor can immediately capture the attention of the world. And many cannot fail to notice that the iPhone 4S event day was the day before Steve Jobs passed away. After that occurred, iPhone 4S vs. iPhone 5 was no longer relevant.

If this is a deliberate move on Apple’s part, then they have succeed beyond everyone’s wildest dreams. There are few that are not moved by Job’s death, and this can easily arouse many Apple fans’ loyalty to purchase the company’s newest product. Also, by allowing the comparisons of iPhone 4S vs. iPhone 5 to die down, Apple can prepare for the launch of another new product in about a year’s worth of time, allowing the company another opportunity to increase their profits again.

Picture URL: http://www.tipb.com/iphone-4/

“Starbucks? Well, they got the ‘bucks’ part right.”

 

Starbucks decides to increase their prices due to rising cost of raw materials. A company spokesperson states Starbucks monitors the prices of various coffee beans closely, while still wanting its pricing adjustments bringing maximum value to consumers.

However, there are two sketchy things about this situation. First of all, Starbucks refuses to mention the exact price increase. Secondly, a competitor—Caffe Artigiano—manages without increasing its prices. The company’s vice-president says that Caffe Artigiano is dealing with long term pricing contracts, allowing the business to keep their prices low.

This is interesting: if a business with only 12 branches can find cheap sources, why can’t Starbucks do the same? Starbucks is the major player when it comes to selling coffee, so the company should plenty of power when it comes to buying supplies—coffee beans. Yet prices still increase.

Now, food prices do inflate, and profits do need to be made. Still, if Starbucks is more transparent about their pricing instead of just dancing around the situation, it’ll be easier for consumers to swallow. After all, I’m sure many sleep-deprived college students won’t exactly notice if they had to pay an extra 50 cents for coffee or hold a grudge.

Picture URL: http://she-fit.com/save-calories-money-starbucks-coffee/