A fellow class-mate of mine, Jae Min Kim wondered about the possibilities of apples future, without the all star Steve jobs here to share off his innovative ideas. Because of this, it is hard to determine how apple will operate, considering that their main innovator has passed away at the age of 56.

In my opinion, in the short-term, the strong costumer loyalty that Steve Jobs “built” will help Apple continue to lead in the market through their current sales, especially with the new release of the I-phone S4 etc.

On the contrary, I do not have much confidence, in the long-term scale of Apple’s future. The success of this business was solely dependant (and I say this boldly) due to Steve Job’s amazing creation and ideas. As he is no longer with us, he can no longer provide “guidance” or “direction” for this company through the use of his creations: creating detrimental effects. Similar effects occurred when Apple fired Steve Jobs during the early years: The moment he left the office, Apple started to fall in the market as stocks started to drop.

That being said, Apple will have a lot of competition as other rivals are now starting to catch up; hence, the following years for Apple, will be rather interesting in regards to whether they will continue to prosper and invent new creations, or perhaps experience a downfall.

Regarding towards GM’s failing advert, Nicola Lam’s Blog concurred that GM was forced to recall their ad after it received a negative press because GM chose not to show awareness for sustainability.

To an extent, this might be true, as some cyclers or college students would much rather prefer to use a bicycle to gain a more sustainable life style. In this case, yes, customers might be appalled by this particular ad.

However, I believe that the main root that caused this advertising disaster is that GM chose to apply a co-ordinated marketing strategy by implying a more “competitive” type of advertisement. As such, GM directly compares their goods (cars) to those of their rivals (bike). In turn, GM, created a humiliating nature towards consumers who uses a bike.

Such advertisements can harm the business image severely, and like in GM’s case, could destroy brand loyalty: A position that GM would not want to be in at this given time.

GM should approach to a more effective, and safer type of advertising, for example a more persuasive approach rather than the competitive approach of advertising. That way, it overall protects the brand image of GM.

Citations

Cycling: Hot or Not?

http://www.gelatobaby.com/2011/10/12/gm-backpedals-on-anti-bike-ad/

Shiv Singh, the global head of digital for PepsiCo Beverages, discussed on an external blog that there will be three major changes in the digital advertising world – (1) The value placed on advertisements will change with the account for engagement, (2) the methodology of the advertisements will be redesigned, (3) and the location-aware technologies will imply a higher degree of consumer engagement.

Television Ad’s are considered an above-the-line promotion, and has been going for the last 30 years, and still remains effective in-terms of providing promotion and brand awareness. Traditionally, TV ad’s focused on “pushing” their messages towards customers, where as now, Companies take advantage in this shift in digital platform where they can attract or other wise “pull” their costumer towards their message.

From a marketing prospective, as long as the digital media progresses, companies can fully utilize this change in digital media to formulate a “corporate” type of advertising as it promotes it’s overall image, story, and culture. As such, it will gain the engagement, and interaction from the customer, drawing their attention benefiting the company’s brand as a whole, significantly.

Citations

Singh, Shiv. “TV Ads’ New Digital Role.” Harvard Business Review. 10 Nov. 2011. Web. 25 Nov. 2011. <http://blogs.hbr.org/cs/2011/11/the_new_role_of_television_adv.html>.

Asda, a supermarket giant, initiated a price war by reducing it’s gas prices to their lowest. It wasn’t until later that other competitors of Asda, such as Sainsbury, recognized this, and quickly announced it’s own price cuts towards the public: building stronger tension between these two big super markets.

A pricing war can assist competitiveness in the short term but it is considered detrimental in long-term competitiveness. Issues arising from the war can include destruction of customer loyalty – new customers you gain can cannot be retained and you lose existing customers; whilst war may force some efficiencies and cost savings in the manufacturing/selling process, longer term profitability is weakened as the ability to raise prices after the war will likely be curtailed; and most of all, nobody benefits.

In case of a price-war, response is key.  As such companies have to “sweeten” the offering – price maybe a component but give focus to additional free extras, greater trade in values that appear to be a great benefit but do not cost as much. For example, in the case of a car – minimum trade in amount, pay registration; give 6 months free petrol, upgraded sound system, etc.  Looks good but it is difficult for buyers to actually price as people look at retail value [price in shops that includes margin] and everybody has different motivations in respect to benefits offered.

Citations

Massey, Ray. “Asda Sparks Price War by Slashing Pump Prices to Lowest Level since February.” Mail Online. 4 Nov. 2011. Web. 25 Nov. 2011. <http://www.dailymail.co.uk/news/article-2057671/Asda-sparks-price-war-slashing-pump-prices-lowest-level-February.html>.

BMW has been in business for decades, and to still be one of the top leading car brands in the world requires more than standard “text book” designing. The secret to BMW’s success was their ability to create a perfect brand image of cutting edge technology and innovation. That said, it is no surprise how “Kelley Blue Book” awarded BMW three awards on Best Performance, Best Exterior Design, and Coolest Brand.

BMW knows that “knowledge sits in the brains of tens of thousands of workers” and to fully utilize that knowledge is paramount and key to remain competitive, especially in the auto-industry that under-goes rapid change over time.

To have ingenuity spread, and ideas created, BMW took another approach in terms of organizing their structure. BMW superseded conventional hierarchies, and create networks that formulate “Cross-functional teams” which allows them to become more efficient and effective at problem solving.

BMW took this idea further and created an organizational system that effectively shifts from a management structure to such networks that encourages entrepreneurial creativity allow conceptional thoughts to literally speed through the company more productive than any standard structure. Such systems like this will inevitably create an organizational culture of innovation.

Citations

“BMW Selected as a Multiple 2009 Brand Image Award Winner.” Cartype. Web. 10 Nov. 2011. <http://www.cartype.com/pages/3790/bmw_selected_as_a_multiple_2009_brand_image_award_winner>.

Gail Edmondson, Gail. “The Secret of BMW’s Success.” Businessweek. 16 Oct. 2006. Web. 10 Nov. 2011. <http://www.businessweek.com/magazine/content/06_42/b4005078.htm>.