A positive online presence can immensely impact  the revenue of the company because people often read online reviews before venturing into new things. The article states that some people even value these reviews over the opinions of a friend. Seeing the public’s reliance on review sites, there is a growing market for fake reviews. As a result, up to 15% of the total reviews online are fake because companies can pay as little as $5 to purchase made-up testimonials and deceive future consumers.

As a consumer myself, I also tend to read online reviews before investing in a new purchase or exploring a new restaurant. I have rarely doubted the integrity of online reviews but this article definitely makes me question the credibility of a firm’s online reputation. Firstly, I believe that writing fake reviews is unethical business practice because companies should build honest relationships with consumers instead of using deception to yield revenue. In addition, this leads to unfair competition in the market, where sub-par companies can actually outshine superior companies due to their fake reviews. I think this encourages a vicious cycle where the consumers will be less and less likely to trust online reviews while more and more companies follow the trend of fake testimonials due to the increasing pressure in the market. Furthermore, this problem actually extends beyond having a bad meal; lawyers, dentists and doctors are also using this technique to attract clients, which could affect one’s life incredibly. I believe regulations must be established to restrict these activities but before then, the only thing consumers can do is to sample widely and be cautious and analytical of the comments found online.

After reading Stephanie’s blog post  and learning that Lululemon denied the sheerness of their yoga and placed the blame on consumers, I admit that I am also saddened by their ignorance and discrimination against plus-sized women. Lululemon is a company that advocates a positive lifestyle by promoting fitness, health and peace of mind. But in this situation, instead of inspiring consumers with their values, they victimized those who really need their help. I believe that way Lululemon resolved the situation will eventually cause irreversible damage to the company because not only does it upset the women whom they victimized, other consumers, myself included, are also outraged by the scandal.

If I was given the opportunity to resolve the problem, I think that a better way to handle the situation is to compensate customers for the poor quality of the yoga pants. Although this may cause the firm to temporarily lose profit, it maintains a positive brand reputation, which I believe is one of the most important aspects of a retail company. In addition, I view this situation as a chance to expand customer segments and take advantage of shared value. For instance, Lululemon can launch a plus-size line that targets curvier women. They can also offer incentives to people who are trying to begin a healthier lifestyle. This could entail giving certain discounts or gifts to first-time shoppers. With this approach, I think that in the long-run, Lululemon can successfully expand their brand not only to those who are health-enthusiasts but also to people who need just a bit of motivation to lead a healthier lifestyle.

On Pandodaily, David Holmes’ blog post discusses the results of Twitter’s third quarter earnings report, which falls perfectly under the predictions of Wall Street analysts. Twitter brought in $361 million of revenue compared to the expected $351 million and also picked up 13 million new users. Despite the seemingly positive results, Twitter’s stocks dropped as much as 13% in the first 30 minutes after the release of the report, which was surprising to me.

After considering Holmes’ analysis on the results, what seemed like promising results at first glance, to my dismay, actually hints failure. In his blog post, Holmes compared the 13 million new users, which seems like a hefty number, to the 284 million current users. When put into perspective, the user growth becomes incredibly insignificant and it has actually been decelerating for the past 5 years. Holmes further discusses Twitter’s temporary monetization growth and how it will eventually be flattened by decreasing user growth. His analysis on the earnings report changed my perception on how I examine earning reports because Holmes not only studies how the company is doing now, but also compares these results to the past results and what the company could experience in the future. Furthermore, he was able to foresee the future adjustments of Twitter according to market trends, which I believe is critical skill of a successful investor. Seeing how thorough and professionally Holmes was able to analyse Twitter’s earnings report, it encourages me to consider these points as well when I analyse earning reports in the future.

In recent years, many consumers have switched to using digital transactions instead of cash and cards, complaining that it too cumbersome and frustrating to use. With electronic wallets, payments are processed through the smartphone, which is attractive to many users, especially younger audiences. Regardless of the convenience and simplicity of the invention, skeptics argue that it encourages users to exceed their budgets because they are less aware of their purchasing decisions.

The innovation of e-wallets and digital transactions is an excellent example of disruptive innovation as it disrupts the existing transaction procedure by replacing cash, cards, and point of sale systems with digital transactions on a smartphone. However, I think that rather than improving the quality of business transactions, the innovation of digital transactions may be a step backwards from our current system. As mentioned before, consumers are less conscious of how much they are spending when using digital transactions, causing them to develop unhealthy spending habits and fall into debt. In addition, I think that online transactions may be more susceptible to fraudulent activities and scams. Another foreseeable risk is that if smartphones are lost or stolen, others may access the user’s financial information and make unauthorized purchases. Personally, I believe that the risks associated with digital transactions outweigh the benefits that it offers. I think this demonstrates how consumers must critically analyze disruptive innovations to determine whether or not it can successively replace the old system and add incentives.