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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.

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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.

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Uniqlo: Asia’s Top Clothier Goes Back to Basics By Naoko Fujimura and Shunichi Ozasa

As Zara and H&M are targeting at low price fashion wear, Uniqlo saw the market and opportunity, joined the war of clothing to satisfy the growing demand on clothing. Uniqlo, a popular Asian clothier focus on providing low price and basic style casual wear, launched its first set of fashionable clothing in the last year. However, the results were clearly not desirable for the sales Uniqlo dropped by 25 percent and left plenty of stocks until the spring of 2011.

Uniqlo’s basic style fleece jacket from spring of 2010.

Uniqlo’s trendy style line in spring of 2010

It is never a strength of Uniqlo to produce fashion wear, and the company is driven by the surface trends too much. The major problem is branding. Uniqlo is known for durable and casual style clothing, but by introducing numerous styles of fashion wear temporarily tarnished its brand image. Due to the unfamiliarity to the consumers, the acceptance of trendy apparel in Uniqlo stores is relatively low. Significantly, it is a good example to show confusion can result in a marketplace, when a company bring in brand extension with products that are too different from the existing ones.

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Wal-Mart Brazil Thinks Green By Andrew Winston

Nowadays, people often talk about going green and improving environmental sustainability. At the Summit 2009, Wal-Mart Brazil announced its goals to tackle some popular environmental and social problems in the world. For example, within the supply chain of Wal-Mart, the companies cannot employ slave, in other words, forced labour. Also, Wal-Mart would not buy beef sourced from any newly cleared Amazonian land. Furthermore, Wal-Mart brought in twenty top corporations such as PepsiCo and Unilever to sign these green agreements together.

Clearly, Wal-Mart is showing their contribution of social responsibilities. However, there are unexplained issues concerning the implementation. There are certain higher cost on supplies to go green both towards the supplier and the retailer, so the cost will be put onto customers. Thus, the customer choice and motivation has possibilities to be affected by the rising price of goods. That is potential threat and high opportunity cost to Wal-Mart in trade-off for business ethics. Moreover, the actual time and plan to make agreement with suppliers to operate under environmentally friendly conditions is not yet estimated. While Brazil struggles in managing competing economic developmental needs, achieving such goals seems particularly difficult.