Monthly Archives: September 2014

  Following the decision of Japan’s Sony in selling their  PC division to Japan Industrial Partners, ceasing the design and development of any PC products, including their Vaio computers,  Samsung has announced the end of their sales of laptop computers in Europe, reiterating many of the business model and strategic concepts discussed in class.

  Due to the “drastic changes in the global PC industry”, Sony has decided to concentrate on the smartphone and tablet lines whislt splitting their TV division into a wholly-owned subsidiary. As seen on the Business Canvas Model under revenue streams, Samsung’s Chromebook outsold many rivals due to its low cost; however, there were slim margins of profit, signalling Samsung to adapt to the market needs and demands.  They have recognized value propositions in “phablets” (phone-tablets), thus shifting their focus from laptops, where according to technology consultant Windsor Holden from Juniper research, “from a consumer’s perspective, where the strength of [Samsung] lies”. In renewing their focus on mobile devices, there are more opportunities of re-positioning.

  According to Ries and Trout, a crucial component of product positioning is getting into the mind of consumers through an unique position. Samsung is set to establish themselves in an unoccupied position, with its soon-to-be-released Galaxy Note 4 smartphone with an add-on virtual reality headset. I think that Samsung’s incorporation of virtual reality technology may be the value proposition that solidifies their unique position in the fierce technology market full of strong players like Apple and Lenovo.

Samsung’s wireless headset, the Samsung Gear VR Innovator Edition launched with the Galaxy Note 4, Wednesday, Sept. 3, 2014 (AP Photo/Markus Schreiber)| Associated Press,

Works Cited

Kelion, Leo. “Samsung ends laptop sales in Europe.” BBC News. BBC, 24 Sept. 2014. Web. 27 Sept. 2014. <http://www.bbc.com/news/technology-29350022>.

Masill, Ben. “Samsung Gear VR is better than Oculus Rift.” PC & Tech Authority. NextMedia, 24 Sept. 2014. Web. 29 Sept. 2014. <http://www.pcauthority.com.au/News/392428,samsung-gear-vr-is-better-than-oculus-rift.aspx>.

“Product Positioning.” QuickMBA Knowledge to Power Your Business. QuickMBA.com, n.d. Web. 29 Sept. 2014. <http://www.quickmba.com/marketing/ries-trout/positioning/>.

Schiesser, Tim. “Sony sells off Vaio computer division, restructures TV business.” TechSpot. TechSpot Inc, 16 Feb. 2014. Web. 27 Sept. 2014. <http://www.techspot.com/news/55581-sony-sells-off-vaio-computer-division-restructures-tv-business.html>.

“Wholly Owned Subsidiary Definition | Investopedia.” Investopedia. Investopedia, A Division of US MAC, n.d. Web. 27 Sept. 2014. <http://www.investopedia.com/terms/w/whollyownedsubsidiary.asp>.

Less than a month after Amazon bought Twitch.tv, a video game streaming site at nearly $1 billion, today, Microsoft announced its $2.5 billion purchase of the Swedish firm Mojang, responsible for the popular video game Minecraft. It is increasingly common for companies to recognize the plethora of opportunities in the less frequented market of video game culture.

This purchase exemplifies many features of the 9 key building blocks of the business model canvas. For customer segments, Microsoft’s purchase of Minecraft not only diversifies the target markets, but appeals to the mass market of consumers within the electronics and gaming industry. With Minecraft recently released for the Xbox One and Playstation 4, and a top selling paid for app for Androids and Apple, more customers will be reached through for Microsoft’s next decisions. A great move by Microsoft for the company’s impressive array of value propositions ranging from smartphones (see: Microsoft purchases Nokia), tablets, computers and now, gaming.

Microsoft’s recent acquisition of Minecraft not only builds a stronger customer base but offers resources to better Minecraft. Microsoft’s recognition of the impact of online gaming communities echoes Professor Marc Skilton of the Warwick Business School that, “the online gaming industry is fast moving from niche collective enthusiast to mass market and Minecraft is a logical move as big business follows the traffic numbers in the digital worldbase” (Miller).

Just one of the millions of possibilites to be created on Minecraft. Source: Amazon Eliza Steel, gameskinny.com

Works Referred to:

Dashevsky, Evan. “Amazon Buys Twitch, But What Is It?.” PCMAG. Ziff Davis, LLC. PCMag Digital Group, 26 Aug. 2014. Web. 16 Sept. 2014.<http://www.pcmag.com/article2/0,2817,2465070,00.asp>

“Microsoft officially welcomes the Nokia Devices and Services business.” Microsoft News. Microsoft, 25 Apr. 2014. Web. 15 Sept. 2014 <http://www.microsoft.com/en-us/news/press/2014/apr14/04-25nokiapr.aspx>.

Miller, Joe. “Microsoft buys Minecraft for $2.5bn.” BBC News. BBC, 15 Sept. 2014. Web. 15 Sept. 2014<http://www.bbc.com/news/technology-29204518>.

Osterwalder, Alexander, Yves Pigneur, and Tim Clark. “Canvas.” Business model generation: a handbook for visionaries, game changers, and challengers. Amsterdam: Alexander Osterwalder & Yves Pigneur, 2010. 14-16. Print.

Edward Freeman’s stakeholder theory states that successful businesses creates value and considers the interests of customers, financiers, and suppliers. Together, the integration of all groups contributes to a standout business. Recently, Yelp, an online review center has come under the spotlight following the Ninth U.S. Circuit Court of Appeals in San Francisco dismissing a proposed class action lawsuit against Yelp as small businesses accused Yelp of “extort[ing] advertising payments by manipulating reviews” (Winkler). The judge ruled that Yelp is entitled to setting prices and not legally required to post positive reviews (Egelko).

The alleged manipulation of reviews tarnishes the reputations of small businesses and Yelp. Part of the stakeholder theory states that businesses that don’t pay attention to corporate responsibility issues, such as the accused extortion, will be regulated. Linking back to government intervention, one may view the government intervention and ruling favoring the interests of Yelp (larger business) rather than the smaller businesses. Governments must decide, create, and enforce rules for a flourishing society, similar to structural aspects of a business. To what extent can the government make decisions that consider the interests of all parties involved? Once again, the boundary of the government’s position in business becomes blurred.

A posting on a San Francisco restaurant with claims against Yelp. – Wall Street Journal

References

Egelko, Bob. “Yelp Can Manipulate Ratings, court rules.” SFGate Business. SFGate, 2014. Web. 9 Sept. 2014.

What Is Stakeholder Theory? – R. Edward Freeman. Perf. R. Edward Freeman. 2009.

Winkler, Rolf. “Yelp Has No Obligation to Display Positive Reviews, Federal Judge Rules.” DigitsTech News & Analysis from the Wall Street Journal.  Wall Street Journal, 2014. Web. 8 Sept. 2014.