There have been many reports on Netflix and its unintelligent decision to split the services with a 60% price increase, then sending emails to all its loyal customers weeks later to admit that it has made a mistake and that it has “misjudged [its] customers”. Here is an interesting analysis of the situation, and how this customer feels that Netflix completely misjudged the situation by not understanding what the consumer wants: silence.

It is interesting because the price increase issue is already considered an imprudent move, but this consumer views receiving random information from the company as annoying. This is demonstrating a lack of market research for Netflix, because the company’s point of differences is providing quick service in an anonymous method. By sending multiple emails informing users about changes, it already annoys customers who have no prior knowledge to the price changes, simply because they have no desire to continue with a provider that constantly bombards them with extra information. With this unique angle, it once again proves that Netflix is still nowhere near the market shares that it once possessed, because the whole debacle has exposed the company being uninformed when it comes to the price of the service and the type of the service that a customer wants.

While sustainability is becoming a prevalent statement when companies are trying to promote their visions, I feel that it is mostly for lip service and utilized as a vehicle to enhance a company’s profile. This is discussed in Vivian’s post, where she poses some questions that influential companies like Coco-Cola state sustainability is “the most critical issue”, but are “they doing it for the right reason?”

I feel that most companies do not; while there may be individual companies that have sustainability as a fundamental value, many publicized companies such as Coco-Cola and Pepsi are about jumping on a bandwagon, merely stating the desire to help improve the world and asking people to support the movements. Ultimately, the major companies are still maximizing their profits, and if marketing the brand as a socially aware company sells, they will incorporate it as a tactic. Last week I went into the Body Shop, and while there are two sales associates explaining the various deals that the company offered, they did not focus on the ethically produced products.

Unfortunately, it seems rather idealistic to hope that sustainability becomes mainstream as it seems to be merely another marketing tactic for companies to entice consumers.

Picture URL: http://2sustain.com/wp-content/uploads/2009/07/Coca-Cola_GiveItBack_logo1.jpg

Generally, it is free will that dictates a person’s choice to consume a product. However, the Danish government decides that it should impose a tax on food that has contains more than 2.3% of saturated fat.

In Lu’s blog, she discusses how it is a bad idea since it will damage local business selling food that is categorized as ‘bad’. I agree with her argument, because by imposing a tax on the good, it implies that there is now an extra cost to purchase the food, and consumers will rather take their money and spend it on somewhere else. If the opportunity cost of buying food is now forgone because the consumer does not value the food as much anymore, this decreases the overall demand for the item and suppliers will suffer as a result.

The tax is simply asking businesses to sell fewer goods for the same price, because the extra cost eventually goes back to the government, and this law is simply a method to enrich the government’s coffers. If the Danish government is truly concerned about its people, they should look for methods that will discourage people from buying unhealthy food in addition to not damaging local businesses.

Picture URL: http://kimoracochran.com/wp-content/uploads/2010/11/happy-meal.jpg

Susan Cumberland has little idea of what the meaning of entrepreneur is, yet she continues stumbling forward, creating a tutoring service that now spans in Vancouver, Victoria, and the States. And while she is humble about what she does, there is no doubt that Cumberland is a true entrepreneur that learns from her past mistakes.

After realizing her first business model isn’t working, Cumberland promptly hires help to ensure that she can build a model to allow her operations to run more smoothly. By taking chances such as hiring a technician to create a database that everyone else “tore [the proposal] apart and said he didn’t know what he was doing”, she capitalizes on an opportunity that prove to be successful, since the database allows speedy responses that clients did not expect. Another aspect of Cumberland’s success is having a vision that translates into a business plan for the business next five years; acting as a manual to refer in order to expand the business.

Without taking risks and accepting innovations, Cumberland would not have succeeded tremendously.

Nordstrom wants to expand into Canada; particularly in Vancouver as it views expansion would be a good step in the company’s overall strategy, as well as opening up new markets. However, Nordstrom also understands that it needs to complete its market research first, thus a spokesperson has stated that the company is still “doing its homework”.

While the upscale retailer has been doing research and has identified some good strength to enter the market such as the Canadian economy is doing well and that the shopping culture between the customers is similar, Nordstrom should consider the barrier to entry as well as the buyer power. There is already Holt Renfrew located in Vancouver, another upscale retail that sells designer goods. And while there are customers who are willing to pay for the designer products, the majority of consumers in Vancouver are middle class and cannot afford all these luxuries at an ongoing basis. Therefore Nordstrom needs to find a way to differentiate itself from Holt Renfrew before it can fully establish itself in the Vancouver market

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

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/

While bookstore giant Borders declares bankruptcy, independent bookstores don’t automatically benefit from this news. In fact, stores have been running advertisements saying that they will honour any Borders gift certificates, yet no one has bothered to take this advantage. After many years of waiting out for the enemy to collapse, the independent bookstores still haven’t received any particular edge.

This is mainly due to ebooks. To put it bluntly, “The Internet is killing [the book industry]”. Every store is now struggling, and even with price-cuts and honouring other bookstore’s credit isn’t simply working out anymore

Unfortunately, technology nowadays is too convenient. One can just sit in a living room, do nothing, and still buy a book. Amazon.com and other online retailers can offer more selection at lower prices, and unless bookstores can offer something more than just books and coffee, they will too close soon.

The harsh reality is that businesses are converting into electronic formats, and books are a popular example where it has been so successful. Perhaps the only method of bookstores still working is to sell it’s own electronic version of books along with physical copies to survive.

Picture URL: http://www.websellersuniversity.com/ebooks/

While it is understandable various companies wish to maximize its’ revenues, the News of the World pushes the limits too far as it authorizes its editors to hack into various phones for information.  However, the company’s most heinous action is tampering with a kidnapped girl’s—Milly Dowler—phone. Not only has the company illegally obtained the information to sensationalize their story, it has also obstructed with justice by deleting phone messages that are probable evidence for the crime. Finally, it has also caused considerable heartache to Milly’s family and friends who have believed that she is still alive at first. Once the scandal has exploded, advertisers withdraw and finally resulted in the closure of the tabloid.

Now saddled with an infamous reputation, the News of the World has lost its branding. Consumers nowadays are not only concerned with the results, but also how a company justly obtains these results. By condoning illegal actions, the company has brought its own ruin as it aggressively pursues greater profit and forgets how its image will be perceived by the public. While revenue is important, companies should encourage sales to be made in an honest way to bolster the reputation of the product.