Monthly Archives: September 2014

Downhill for Tesco…

With the case of Tesco we can clearly see the importance of brand identity and innovation.

Tesco has been trying to increase its profits, by saving costs on its innovation and customer service. Their investments are too low and this is harming their brand identity and their engagement towards fulfilling customers needs.

The article suggests that customers aren’t willing to travel to out-of-town hypermarkets anymore when online shopping is a lot more convenient and time efficient. Consumer habits are bound to change over time but Tesco has not been adjusting to these changes. I would recommend that Tesco should have a rebrand to move back into the positive light and offer points for online shopping and in-store shopping, which can be redeemed. More money needs to be invested to not fall behind of competitors.

Tesco needs to recognize that when a company is making a lot of money it can be hard to then spend and invest it, but if it is used efficiently it will increase profits and be worth it in the long run. The article takes a very pessimistic view and claims that Tesco will never return to its glory, which I don’t think is necessarily true, as Tesco has many loyal customers and by changing their investment strategies they can climb back to the top!

HMV on the Brink …

HMV is forced to reshape its business plan in order to survive, as the market for music is rapidly changing.

The article says that entering the competition of online streaming is a bad idea, and I really agree with this statement because the online music industry is so far ahead that it will be difficult for HMV to make a name for themselves. Christine says in her blog post that HMV has no other choice but to cater online streaming, but I think that by adjusting their business model they can continue without going online. However, I do agree with Christine that it is very benefiicial for HMV to sell merchandise for bands and singers and in that way attract customers to their store.

The article claims that if HMV were to stream and sell music online, that Spotify and Deezer would not be a competition but I think that those are the leading companies in the online music industry and would definitely be of big importance in the way HMV will shape their service.

The article ends with a very important thought that when customers enter a store they will be offered first-hand service and advice, which the internet does not offer and that is of great value.

And who knows.. in the future CD’s might be as popular as Vinyls are at the moment and then HMV will rise up again.

Water is Not a Right..

The multinational food and beverage company Nestle is taking it too far!

They are driving to achieve maximum profit and not taking into consideration the well-being of others.

Should water now become a commodity to invest in, rather than a resource available to survival? I personally think this is taking it a step too far. Anyone who can’t pay for water will only have 20L of water available everyday for basic hygiene and survival..

The CEO of Nestle Peter Brabeck said: “Access to water is not a public right” (Samson).

Many people are unaware that Nestle has been finding loopholes in British Columbia to extract water from aquifers, without having to pay for the resource or reporting the quantity which has been extracted and then selling it at a high price to achieve the highest possible profit. By this, Nestle has extracted and sold over 265 million liters of fresh water. Nestle is being unethical and taking advantage of the laws that have been set over 100 years ago. Why is there no limit or price for regulating the usage?

Nestle has said they will truck in emergency supplies for citizens who can’t afford to pay for water, but I don’t think 20L a day is merely enough for basic hygiene and healthy lifestyle. Yes, our fresh water supplies should be conserved as resources are scare, but the way Nestle is taking actions is unethical and harming and I think it is even a violation against human rights . Even collecting rainwater has in some parts of the United States, become a crime and leaves citizens with no way out.

Freeman explained situations similar to this and that regulations will eventually be put in place and Nestle is therefore a “business that is likely to decline”.