Reference to Schumpeter’s Blog from The Economist

VW’s struggles on the road to world domination

In 2009, Volkswagen announced the “comprehensive partnership” with Suzuki hoping to expand its market worldwide. In this partnership, Suzuki agreed to teach Volkswagen about hybrid and diesel engine and in return, Volkswagen would offer its knowledge on how to make profit from small cheap car. However, the partnership soon faced its challenge when the director of Suzuki stated that “Volkswagen viewed Suzuki as a subsidiary company instead of partner” in his blog. With distrust and unequal respect, both Volkswagen and Suzuki sensed the difficulty working with each other.

I think the story is related to both entrepreneurship and cooperative working. Both firms seeks the great profit in the long term from developing a partnership innovatively with each other. However, in the reference blog post, it mentioned that Suzuki and Volkswagen have different expectation and goals for this relationship. The questions are: what attitude should these two firms take when realizing they’re not on the same page? what action can either of the firms take if they feel being mistreated? Answer: doesn’t matter if it’s large corporations like Volkswagen or Suzuki or just ordinary small business, it is difficult to make solutions to the problems if none of the players agree to talk and act publicly.

Reference Article: The Man Who Makes Your Iphone by Frederik Balfour and Tim Culpan

Tyrangiel Discusses Outlook for Foxconn, Terry Gou: Video

* The video start off by giving news about Foxconn suicides but the second half of the discussion is great introducing the company.

Apple Iphone, Nintendo DS and Acer notebook….. doesn’t it sound familiar? Everyday, we use and encounter various technological gadgets. All these well-known brands such as Apple, Acer, HP, Dell and Intel are all clients of Foxconn Technology Group. Foxconn is the world’s largest maker of electronic components including printed circuit boards. The company satisfies the demand of North American, European and Japanese firms who wish to produce electronics at reduced cost without sacrificing quality.  The company is founded in Taiwan in 1974 and continues to grow as it received more order of electronic goods globally.

Foxconn is certainly an entrepreneurial company for its new production method, market and products. In 2014, Foxconn is projected to implement one million robots in production line to reduce increasing labor cost. It also foresees the large demand of electronic products around the world; by producing durable and high-quality electronic core components in Asia, Foxconn is able to offer manufacturing service to companies such as Apple at lower price by internally control the cost of labor due to economies of scale. Finally, Foxconn holds more than 200 patents globally. With innovations, the company can create newer and more desirable electronics in future.

Recommend readings on other Taiwanese entrepreneurs (check them out! ):

Taiwan’s 40 Richest by Russel Flannery

Reference Article: Are Generations X and Y Slackers or Stars in the Workplace?by  Doug and Polly White

Generation Y, yes, a very familiar categorization of people that we all heard about day to day. No doubt, it’s us; people who are born from 1979-1994. We are the Ys and described as impatient, outspoken about criticism and having greater potential for high maintenance than previous generations. As mentioned in the article, Generation Y  are more inclined to work in flexible and fun environment. However, I think these forecasts are not just applicable to Ys but general workforce out there.

Take a peek at the employee words to describe the best-company to work for surveyed by Fortune:

Generally, the interactions between people are highly valued within employees across different age and generation. Not only Ys are engaged in diverse and positive working environment, so are the others.

Take an look at best companies to work for surveyed by Fortune:

Companies place high value in organizational culture have support by workforce across generations. It’s not only the materialistic benefits and salaries that attract people, but also the working environment and relationships between colleagues and leader.

Those companies have comparative advantages in human resources that others don’t. Bonus: reputation of the coporations are also elevated through the public notion.

Check out the interactive diagram reference from Fortune megazine: Best Companies to Work For 2011

Reference Article:

Why Sustainability Is Winning Over CEOs by Duane Stanford

Large corporations such as Wal-Mart and Frito Lays are rapidly generating innovative ideas to save them the cost of producing their products but also the environment. For example, Wal-Mart’s Japanese supply chain in Seiyu replaces regular plastic packaging with oil and corn-based packing for vegetables. It saves Wal-Mart more than $195,000 a year. On the other hand, Frito Lays incorporate advanced technology to save water vapour from cutting potato chip slices and turn water vapour into useful water. Both companies seek an efficient alternative in their product that is beneficial to the environment and cost wise.

It is a very good example to show that sustainability is not just an external issue that creates pressure upon businesses but also cost-related. The brand image is also enhanced while implementing these technologies. Elevated brand image is considered the intangible value that a company received as an outcome being socially responsible. Clearly, Wal-Mart and Frito Lays are the “Green Wave Riders” that satisfy consumer demand in the market while the increasing brand credibility and cost reduction are being unexpected desired outcome.

Reference to Joanne Chua’s Blog

First E. Tenn. Eletrification Truck Stop

TR Auto Truck Plaza promotes its electrification truck charging station with twenty docks in Tennessee, United States. However, after a short period of time, the company goes into bankruptcy and the owner is sued for not paying two million dollars bank loan. Its initial goal is to target environmentally concerned consumers to use their charging station. Due to lack of promotion and the elastic demand on green product, the goal failed with large cost.

Actually, I disagree with Joanne’s point of view in tactics and strategies. I would argue that the promotion of electrification charging station would be a competitive strategy in the long run. With the awareness of environment steadily rising, the green market segment is in fact expanding. TR Auto Truck Plaza’s weakness is unsuccessful promotion of their product in the beginning as well as lack of service location (only one station in Tennessee). Certainly, the business values the opportunity of expansion of green market. Nevertheless, the business neglects the importance of tactic so its differentiation strategy cannot be implemented.

Reference to Adam Markus’s Blog

Bidding On Onlive

When I read the blog post written in our fellow classmate- Adam Markus’s blog, I came in contact with the new gaming technology that allows people to play previously used to be console-binded games on just regular TV, computers and laptops with one Onlive console. Onlive is targeted to sell gamers from teenagers to young adults.

Onlive positions itself (brand) in a unique spot in market to offer consumers a more flexible choice to plays games on other platforms. It is fair to say the business holds a unique point of difference from gaming console companies such as Sony and Nintendo. It is also compelling to consumers when people no longer need to buy specific consoles for certain titles of games; Onlive helps gamer to save money from buying consoles, but in exchange, people are more willing pay for Onlive service to play a wider range of games wherever they like.

I agree what Adam says about gaming console is already on its way toward being obsolete; it certainly surprises me because video games are no longer monopolized by game companies and as innovation grows, we are seeing raging competitions in market to win consumers.

Reference Article:

Netflix, Hastings Get it Right By Roger Ebert

Netflix is an online high quality video streaming service provided to customers at a monthly cost. The corporation used to provide DVD mailing services with the membership fee without extra cost. At July of 2011, the CEO of Netflix- Hastings announced that online and mailing video service will be divided into two services charging two prices. Obviously, the CEO sensed he made the wrong decision when thousands of customers terminated the use of Netflix. The Netflix dropped fifty percent in sales, however, Hastings refuse to take back the decision and visioned the market will continue to grow.

Just based on the calculation of elasticity, the outcome of this incidence shows the demand is relatively elastic, consumers’ response to the change in price is directly related to the drop in sales. However, in the long run, Netflix only lose less than 1/10 of the consumers due to the increase in price. Clearly, Netflix is still aiming to make money from remaining consumers; it is seen as a marketing strategy.

Reference News Article:

The IPad’s Secret Abilities By Rachael King

Nowadays with more technologies advancing at a quick speed, Apple sees its new market to target toward people with disabilities with their innovated computer applications to help them out. With growing percentage in disabilities at workplace, more consumers demand devices that can assist their insufficient vision as well as hearing. For example, Apple offers applications that can read documents to the user using the Apple IPhone 4 camera to take a photo. Other corporations  such as Microsoft and IBM is also seeking in providing accessible workplace technologies to people, but have not yet make a hit.

Apple’s take on marketing aging boomers with their innovated product is certainly unique and clever; they positioned their brand first in the technology market when others have not reach the same consumer group. Clearly, Apple’s market segment has broadened with the new consumers and successfully distinguished points of difference between other computer brands. Also, Apple is competitive and repositioned themselves between others by offering affordable applications rather than expensive disability devices. In conclusion, the point that Apple products stand out in this particular market segment is that disability people use the “normal apps” on their devices.