There is much competition for market share in the $93 billion per year video game console industry.Relating to our discussions on brand positioning, Sony is attempting to position it’s new  Playstation 4 as the leading gaming console by releasing it before the new Microsoft Xbox console, and thereby being first to the market place.  As noted in class, in an effort to increase market share,  it is better to be first in launching a product, rather than spend time improving it prior to release.  Being first helps to establish leadership, and that can be difficult for competitors arriving later to assume.  The music for their advertising campaign is the song “Perfect Day” which implies that using the Playstation is “perfect.  The point of parity is that like its competitors, Playstation provides entertainment; however, they are establishing a point of difference by providing cutting edge processor speed and graphics, but at a price point $100 cheaper than Microsoft.   The cheaper price and being first to the market give Sony an advantage over Mircrosoft.    As analyst Michael Patcher states, “A 20 percent price difference means 20 percent higher sales, plain and simple,”.

http://www.bloomberg.com/news/2013-11-15/sony-channels-lou-reed-seeking-hitch-free-playstation-4-debut.html

Discussing and working on business plans in class has triggered me to focus on interesting concepts I hear about in the media.  Recently I heard about an unusual business plan proposed by the former president of Trader Joe’s grocery stores.  He is opening a grocery store/cafe, The Daily table, which will sell food items that have passed their sell by date.  However, there is a difference between sell by and expiry dates.  He recognizes that there is a whole sector of the population which is currently under-nourished due to their income levels (healthy foods tend to be expensive), so why not utilize good food which would otherwise be thrown out.  What a brilliant concept as the inventory for his store will be available to him at an extremely low cost, and in some cases free, thereby keeping his overhead low. As well, if you factor in a federal tax credit as well as the positive public relations a project like this generates resulting in reduced need for a marketing and advertising budget, his potential for a good return is high.   His business plan focuses on selling groceries, but what makes the Daily Table’s model different is that it also addresses another problem: time.  By providing prepared, nutritionally sound meals at pricing equal to fast food, he can appeal to more customers.  I wonder if his interest in pursuing this endeavour is a response to the criticism he received while president of Trader Joe’s, in regards to the amount of food they discarded?  It is possible that his involvement in traditional entrepreneurship has led to this social enterprise?

http://sanfrancisco.cbslocal.com/2013/10/03/consumerwatch-ex-trader-joes-exec-plans-store-selling-exclusively-expired-foods/

http://www.npr.org/blogs/thesalt/2013/09/21/222082247/trader-joes-ex-president-to-turn-expired-food-into-cheap-meals

Yes – the sandwich generation can and should work in social enterprises

On the social enterprise blog for the Guardian newspaper, I came across an interesting post by Nick Temple, discussing whether or not the “sandwich” generation, (those caught between looking after elderly parents, and children) can and/or should work in social enterprise, due to their need for financial stability which would allow them to care for their families.  The theory is that social enterprise does not work for this group because it doesn’t earn you enough money, and when you leave there is no big payoff.  However, the blogger proposes that there is no reason why social entrepreneurs shouldn’t pay themselves an above average wage along market rates, in order to allow for them to continue in this line of business and not have them pull away into mainstream entrepreneurship.  I agree with this statement, because even though involvement in social entrepreneurship should be driven by motivation towards a social mission, and not financial gain, you need to provide compensation (at a comfortable level) in order to have these individuals continue to contribute to improving the society we live in.

http://www.theguardian.com/social-enterprise-network/2013/nov/14/sandwich-generation-care-social-entrepreneurs

CLAUDIA SJOBERG-FOUNDER OF ATLANTIS PROGRAMS

I found it interesting to read that females account for 38 per cent of B.C.’s self-employed people.  Also interesting is the statistic that the number of female entrepreneurs in B.C. jumped 3.4% between 2007 and 2012, in comparison to 2.8% for males.  Even more interesting to note is that the increase was entirely attributable to females over the age of 45.  Why is that I wonder?  I suppose it has something to do with the desire for women to preserve a balance between life and work and through self-employment can somewhat control that better.   As discussed in class most of these companies were developed as start-ups to address “what’s bugging you”, and “what’s missing”, and females seem to have a knack for doing this.  The secret to their success is that they deeply care about their products or services, and due to the need for work-life flexibility, companies develop slowly and growth is steady.  I would think that this allows for kinks to be worked out, and continual re-assessment of products and practices which result in greater success.

http://www.theprovince.com/life/Making+their+business/9176322/story.html