Monthly Archives: October 2014

Chinese “National Automobile” lost 115 million dollars

As the best-selling automobile brand in China twenty years ago, Xiali becomes the firm which has the heaviest losses in the Chinese automobile market now. After the first three seasons in 2014, it has lost about 115 million dollars.

Two decades ago, Xiali made a lot of Chinese people to own their first car, and it has been named as “National Automobile”. The firm set many new records in car-making industry, and took up 40% of the taxi market in 2000. However, Xiali was hit hard since Beijing government announced to replace all these taxi by other better cars and it lost one of its main market gradually. Nowadays, Chinese automobile market is full of competition, the situation make Xiali more difficult to turn the table. But the deeper cause of the problem might be the acquirement by Yiqi Group. After being acquired, Xiali miss the opportunity to innovate and only focus on the low-end market. Now that, the consumption level has been higher and higher; less and less consumers would like to purchase Xiali as a part of their live.

In my opinion, let Yiqi Group go public is the most important way to save Xiali, because this action will send a kind of positive information to the public and let the future of Xiali to be worth being looked forward.

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New stadium Yes or No

Thousands even millions of people flooded into South Africa in 2010 for the World Cup, which is one of the most popular event in the world now. However, whether South Africa gained huge amount of benefit from it, it depends on what kinds of benefit we mentioned.

As one of the BRICS, they need a chance like that to let more and more people to know them; no matter they gained or not. On a reading for the preparation of COMM101 we could know that the stadium, South African government built for the 2010 World Cup specifically, might face the fate of being demolished. Because it is hard for them to cover the operating cost only getting money from the $4 visiting fee. Thus, is it necessary for the next country which is going to hold a big event like World Cup and Olympic build totally new stadiums? Obviously the answer is NO. If the city has some old ones but not too old, these stadium could be decorated again and will be very nice. Or the city has to build a new one; universities are good choices to locate it. Do not always try to be the biggest one. Service that the government could provide is more significant.

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The new opportunity brought by the new policy

The policy which National Chief Shawn Atleo  declared at the 2010 annual meeting of the Assembly of first Nations give the aboriginal area a unique opportunity to promote business.

The region Indian live may have a lot of previous resources which are the main raw material for many of the industries. Protective development is the most significant measure we should take. Some of the Indian’s live quantities are below the average level. So exploiting the natural resources is a win-win strategy. The companies enter these regions need labor, and the local people could get a better job. Industries could also accelerate the development of local economy and make the town become an industrial district. At the same time, protecting the environment is the another important work to do. We cannot make the area like twenty years ago, people only focused on the production but ignored the environmental problem. Setting up a new model of Eco-industrial park will be a good idea. To experience the Indian’s life could be designed like a tourist program, and the beautiful scenery is also very attractive to the tourists.

The policy for the First Nation’s land give the individuals many chances to change their own life. But that means change their hometown as well.

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How to make the production more attractive?

The article which provided on the connect wrote about Blackberry has launched their new product named Passport. Mr Chen, the chief executive of Blackberry, said Passport has a bigger screen, longer battery usage, and the most important is the lower price. However, all these advantage did not attract the consumers attention successfully.

Maybe Blackberry do not worse than Apple or Samsung in technology but they miss the opportunity to become popular. It just like Nokia, I believe everyone owned a Nokia in the past ten years. Finally, the company do not escape the fate of becoming obsolete. In my opinion, Blackberry do not pay attention to the Chinese market. It is so hard to make the North American people try to use Blackberry instead of using their iphone. Apple has occupied a large proportion of market in America and most of the people there own other Apple’s products as well, like macbook, ipad, ipod which could connect with each other.

However, Apple is becoming popular in China, but not everyone could afford them. So this provide a good opportunity for Blackberry. Another reason is Chinese consumers always follow others that some of them do not know what they really need. If Blackberry could strength the publicity and advertise a lot in China, they would get unexpected benefit from Chinese market.

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Whether the low-end brand benefit the company focus on the high-end production

These days, I have always considered about a question since we did the assignment about Tesla. In that homework, one of my recommendation is to produce a new brand which face the lower class, like Mercedes-Benz has Smart. So whether the low-end brand benefit the company focus on the high-end production originally.

As we all know, after iphone 5, there are two new types for iphone,  and one of them is cheaper. Maybe it is not difficult for most of the American families to afford iphone, but it is still not a low expenditure for most of the Chinese families. However, I seldom see someone use 5C. If people like iphone, they would choose 5S. The others will purchase some cheaper ones like Samsung, HTC or Blackberry.

Why the low-end production of iphone do not get a success as Smart’s? In my opinion, 5C did not have an unique advantage among all these thousands kinds of cellphones. Only the lower price may not make the consumers love this cellphone, or the price is not low enough. On the contrary, Smart has a quite low price, novel looking as well as the good quality, and all these make it special. Only the special things could catch people’s eyes right?

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