I just wanted to say, it’s been interesting writing these blogs. I’ve learned a lot from being forced to go search for business articles no matter how bad the way I worded that sounds. I’ve grown a lot, I can tell by looking at my first blog which I couldn’t help but edit a little.

Embed links to two classmates’ blog posts are in 1) Tweeting Tweeter? and 2) Mouthful of Profit. 

Embed link to external blog can be found near the end of my tenth business blog post (Changing the world.)

Message to myself: You’ve survived Melissa! Please remember to look back to this blog in future years and laugh at yourself!

Cheers,

Melissa Shiyuan Wu

Fleksy is a mobile application allowing individuals to use their phones without looking at the actual device. Ioannis Verdelis, one of the young entrepreneurs behind Fleksy has changed lives with his product, which was initially geared towards the visually impaired.

Fleksy in action!
Click to link to original site.

The constructing of the business was a difficult challenge for the two founders, Verdelis and his partner, who lacked significant funding and experience in their chosen market.  However, through high risks and sacrifices, Fleksy has become successful. The company was built around the strategy of receiving opinions from their potential customers, a method strongly implemented in the lean startup methodology. Verdelis and his partner broke down their vision into a niche target market – the visually blind, to help them ameliorate and hone their products. They worked alongside their blind customers, using an effective feedback loop to find holes in their prototypes, ideas for new features and at the same time gained revenue as Fleksy’s popularity grew.

This invention just warms the heart. Entrepreneurs out to better the world, I hope I have enough courage to be you someday. You really inspire me to try my best. Thank you for everything you’ve done to make people’s lives that much better.

Entrepreneurs looking for tips and inspiration? Liz Strauss’ business blog that I miraculously found is an excellent place, I feel, full of valuable information for people part of a business or those that are starting their own. She offers points and tips about every day life, mental hurdles difficult to over come and information on programs that could help improve businesses. It’s amazing.

Original source: http://www.entrepreneur.com/article/229387

Shopper’s Drug Mart Corp. has been working towards integrating a more personalized method of marketing to its customers. The business, which is in the process of being taken over by Loblaw Companies Ltd., is reportedly already maintaining a hold on its consumers with its new target advertising and exclusive offers. Through the introduction of its Optimum program, a reward service that gives store points according to how much has been bought, Shopper’s has gained incredible insight into its customer preferences helping it better position itself to customize its advertising to consumer demands.

The Optimum Rewards card offered by Shopper’s Drug Mart
Click to link to original site.

Shopper’s, like many other stores, is now starting to look towards MIS, management information system and BTM, business technology management, to ameliorate customer relations segments. The information companies receive from both technology and their employees is contributing greatly to their rising success stories. The feedback loop is crucial to any business and applies greatly to a retail chain whose main stream of revenue is derived from purchases from its stores.

One thing I’ve learned that’s become apparent in most of the articles I’ve read is that businesses that care to learn more about their customers usually see their sales increasing. On the business model canvas, companies that put emphasis on the details of customer segmentation and relationships understand what they are dealing with more clarity and can shape other aspects of their canvases to fit well with their customer demands.

Original source: http://ca.news.yahoo.com/shoppers-drug-brings-higher-q3-sales-loblaw-takeover-141413761–finance.html

Remember the good old days where mom would ask you to flip through that ridiculously heavy directory filled with phone numbers? Now, all you and I have to do is type into a search engine. I almost miss those days. What we can observe here is a huge growth in e-commerce and digital services.

Yellow Media Ltd., a Canadian telephone directory publisher, has announced that 10% of its workforce will be laid off as the company moves into its digital business. The cut workers will be primarily from its print and legacy business.

Yellow Pages Directory
Click to link to original site.

The digitalizing of the world has led businesses to technology-based platforms to promote and sustain their services. Many director publishers have suffered extremely because of users switching to online search engines to find local listings. Many companies are also now choosing to advertise online. However, since directing its focus to its digital business, Yellow Media has seen to an increase in the value of their shares.

The world is changing rapidly and companies must run to keep up. Thus companies must stop driving while looking through the rear-view mirror and instead look towards future possibilities with technology. By properly harnessing technology, businesses can match up to the morphing demands of their customers, keeping them ahead of the game.

Look at how Kodak met their end and I’m pretty sure their story serves as a reminder to the fact that if you don’t keep with the change, the world will leave you behind.

Original source: http://ca.news.yahoo.com/canadas-yellow-media-cut-10-percent-workforce-155244238–finance.html

Candy Crush Saga
Click to link to original site.

I am incredibly excited to write about this app because currently, I am using it and stuck on level 105.

King, creator of the game app Candy Crush Saga (Candy Crush), was actually formed by a few friends working at a tech start-up. The app now reaps an estimated $1 million to $3 million per day and has created a mobile legacy. Originally designed for computer platforms, when the company decided to shift focus to mobile screens, they were blown away by their success. Consumers who have been increasingly migrating to mobile platforms have made for strong potential in this market.

Candy Crush is addicting, so much that I actually bought a couple of lives. I admit it. Yet, I never would have touched the app if it hadn’t been for free.

One of the biggest strategies Candy Crush has up its sleeves is its “freemium model” which allows players to play the game for free with a limited amount of lives. While one may feel puzzled over how a free game can make any money, think again. Candy Crush by being “free” has exposed itself to far more potential customers than locked paid apps do. Furthermore, the addiction that the game induces has prompted customers to purchase lives at an appealing cheap price that has stacked up into millions.

Moral of the story is: smart marketing can lead to excellent results.

Original source: http://www.reuters.com/article/2013/10/08/us-sweden-gaming-idUSBRE99704F20131008

Here’s an interesting article about a marketing method targeted at women. I found it to be quite personal as I come from a similar cultural background and it really made me think about Jenny’s post on how advertisements regularly wrongly influence the way women view themselves.

Freshness Burger, a Japanese restaurant chain, found that Japanese women had caught onto a trend of eating with small closed bites. For females to open their mouths wide is considered rude in Japan and thus, Freshness Burger started using a different type of technique to boost sales.

Liberation Wrapper Advertisement
Click to link to original site.

The “liberation wrapper” designed by Ad Dentsu features a closed-mouthed woman on the wrapper of the burger that perfectly covers up the faces of women while eating, giving them the freedom to open their mouths as wide as they want.

Freshness Burger’s sales have leapt since the introduction of the wrapper. The business through careful customer observation has conjured up a startling point of difference that may blast it towards a better positioning in its large operating market.

This brings me to my question. Do women there feel as if this is “wrongly influencing” them as its part of their culture? How do you even define “wrong”?

Original source:  http://www.huffingtonpost.com/2013/11/04/the-liberation-wrapper-burger-women-small-mouths_n_4212192.html?utm_hp_ref=mostpopular

Hot! Hot! Hot! Spicy alert!

Irwindales’ Huy Fong Foods Factory, the producer of the popular hot sauce Sriracha, recently came under fire. Displeased citizens of Irwindale started complaining about burning eyes and the smell. However their restraining order issued by the city against the company was denied by the court. Huy Fong Foods continues to produce the hot sauce in massive supply.

Sriracha Sauce Array
Click here to link to original site

It is evident that society and the company are still at odds even after last year Huy Fong Foods installed carbon filters with a second layer to resolve smell issues, highlighting an important point.

Companies are becoming increasingly frustrated when dealing with negative externalities they impose on society as trust between the two is declining. Many businesses cannot seem to find their way out the narrow mindset of creating value. They ignore the big things such as customer needs and environmental sustainability, essentially separating business from society. This needs to change.

What connects companies to society is shared value, a concept that many companies are starting to turn to which I support thoroughly. In utilizing shared value, which can maximize productivity, the world can be pushed towards new innovations and growth, profiting both the people and businesses. It’s a win-win situation.

Original Sources:

http://www.latimes.com/local/lanow/la-me-ln-sriracha-price-irwindale-20131029,0,3586185.story#axzz2j9tqt41i

http://articles.latimes.com/2013/oct/31/local/la-me-1101-sriracha-suit-20131101

“Unfair competition” to French publishers has sparked governmental interference.

France’s lower chamber voted through a law protecting local bookshops from online giants, such as Amazon, on Thursday.  Stating that the book pricing law is part of their heritage, French lawmakers are prohibiting online book vendors from “offering free delivery on top of a maximum five percent discount on books” (Reuters) to its customers. The law, heading towards the Senate, is expected to pass by the end of this year.

Librairie Les Vraies Richesses in Grasse, France
Click to link to original site

How badly Amazon will be affected by this law remains to be determined however when operating internationally, companies will constantly be susceptible to setbacks. The French who are adamant about protecting their books have a culture when it comes to protecting small book stores from losing to large competitors that Amazon evidently did not take into account.

There seems to be a pattern if I am correct in my findings. Businesses that do not observe culture well have faced significant setbacks. Starting up in a new place requires observation in order to survive. It’s about knowing your environment. It’s also about changing your organization’s culture to better match that of the location. Getting over the high barrier of entry to the international market (Porter’s Five Forces) isn’t all that has to be done, you also have to be able to survive.

Original Source: http://www.nytimes.com/2013/10/04/business/France-Takes-Aim-at-Amazon-to-Protect-Local-Bookshops.html?ref=international

Cracks In Security

On Thursday October 3rd, Adobe announced that source code to some of its most popular software was stolen. The hackers are now in control of information on 2.9 million Adobe customers and the company is trying hard to solve the mystery though, to no avail. Adobe reports that no evidence was found on the attack and has begun to work with federal law enforcement to prevent intrusion on client accounts.

Adobe Logo – Click to link to original site

A company such as Adobe relies strongly on its brand quality. Its market is broad but its continuous innovations have proven to be helpful and trustworthy thus garnering it a very large customer base.

Yet, relating to what we learned in class, buyers have relatively high power in the market Adobe is operating in according to Porter’s Five Forces. Buyers have low switching costs and Adobe’s biggest competitor, Apple, poses a powerful threat as customer satisfaction will most likely suffer damages. If Adobe does not deal well with the follow up situation, unable to reinforce its value proposition and keeping customers happy, many may be looking towards a new company.

Still, I’m Adobe’s avidly loyal customer through whatever may happen I would like to think. Customer loyalty could definitely keep Adobe from losing key customers.

Original Source: http://www.theglobeandmail.com/technology/adobe-says-source-code-customer-data-stolen-by-hackers/article14695999/

Reminder from the Grave

I never thought that business news would make me laugh but here’s the story that made it happen.

Many investors blinded by excitement mistook the shares of Tweeter, a bankrupt consumer electronics retailer, for that of social media giant Twitter’s.  A number of shareholders traded Tweeter’s virtually worthless shares inducing a rise in value by more than 1,000 percent since its closing on Thursday at less than a penny a share.

One of Tweeter’s stores.
Click to link to original source

Originally, I had been planning on writing about Twitter’s filed IPO, a serious topic, similar to Henry Bian’s post here. However, I could not pass up on fine humour and the article made me wonder about Tweeter and its downfall.

The company had previously operated in a wide market using differentiation as their marketing point. The specialty electronics store had many products that no other store offered but at high prices, so high that customers were less willing to buy. In addition, their strategy eventually became blurred as the company began many acquisitions causing Tweeter to lose its identity in a panic when other competitors surged forward. I strongly believe companies should focus on one business strategy, as when trying to please everyone, you please no one.

 Original source: http://www.theglobeandmail.com/report-on-business/international-business/us-business/tweeter-home-shares-explode-on-apparent-twitter-mix-up/article14700115/

Other sources used: http://www.cepro.com/article/the_rise_and_fall_of_tweeter/