This blog makes references to Jeffrey Tung’s blog post “Twitter Going Public- Will You Buy Their Shares?” (https://blogs.ubc.ca/chehsiangtung/2013/10/07/twitter-going-public-will-you-buy-their-shares/)

Twitter’s announcement of going public has caused quite the hype around the business world. As Jeffrey Tung described in his blog, there has been a back and forth debate on whether buying Twitter’s shares would be a good investment or a risky one. Jeffrey addressed how buying a share would not be a good idea due to past IPO’s of social media companies, for example, Facebook. The stock plunged after it’s IPO.

Over the past weekend, the New York Stock Exchange ran a “dry test” for Twitter’s IPO which was described as very successful. They predict that when Twitter finally goes public around the U.S. Thanksgiving Holiday, it will just be as successful, if not more.

However, there are still many issues that could potentially hinder Twitter’s IPO success. First, as addressed by Jeffrey, Facebook’s, a leading competitor to Twitter, IPO did not go well. People may be reluctant to buy Twitter’s shares. Additionally, Twitter’s main revenue stream is from advertisements. This is a very unstable and unpredictable revenue stream. Twitter is also not releasing all of their details, making the customers less confident. Another factor making consumers less confident is the recent government shutdown. In the CBC news article, it states that U.S. consumer confidence is falling, in turn, declining consumer spending.

Although the dry run had a favourable outcome, it does not necessarily mean the actual exchange will occur that way. There are still multiple problems that could stand in the way of Twitter’s IPO success. Will these issues burden Twitter’s success or are they negligible? Will the success from the dry run carry over to the actual IPO?

Figure 1: http://mashable.com/2013/10/03/6-things-twitter-ipo/

Source 1: http://news.yahoo.com/nyse-holds-successful-dry-run-twitter-ipo-222750401–finance.html

Source 2: http://www.cbc.ca/news/business/u-s-consumer-confidence-falls-after-government-shutdown-1.2286926

Source 3: http://online.wsj.com/news/articles/SB10001424052702304500404579126950604701622

When I heard about the U.S. government shutdown of 2013, I had to hold in a little chuckle. I had never heard of a government completely shutting down. How big and dramatic could this problem or dispute be that lead to a government shutdown? Has U.S. politics really become so bitter that the government can no longer function itself?

The shutdown occurred because the two houses of Congress, the Republicans and the Democrats, failed to agree on a new budget. The two conflicting parties argued back and forth about Obamacare. The condition for passing a bill was this healthcare law. Because they missed their deadline for this spending bill, this estimated three-week shutdown fell upon the American government. Due to this recent shutdown, over 700,000 federal employees are now facing an unpaid leave. The department of education, energy, health and human services are expected to be greatly affected by the shutdown. A large fraction of their staff will be sent home. Not only will the workforce be affected, national parks and some government museums will close, and services like passport processing will be put to a halt.

After reading about the first shutdown in the U.S. since 1996, I couldn’t help but wonder how it would impact businesses. For instance, a small business owner may need government loans to sustain their business. However, the owner now has to wait until the shutdown is lifted. The delay in loan may cause problems for running the business and can lead to long-term issues and debt. The shutdown ultimately threatens the economy and puts it at risk.

How long do you think the shutdown will last? Should the U.S. government stop playing the blame game and start resolving this problem? Do you think the first shutdown in 17 years was preventable?

Figure 1: http://www.policymic.com/articles/65009/government-shutdown-2013-what-s-in-it-for-you

Source 1: http://www.cnn.com/2013/09/30/politics/shutdown-showdown/index.html

Source 2: http://www.bbc.co.uk/news/world-us-canada-24343698

Blackberry was once known as the leader of the smartphone market. They were initially the first to “claim” this unique position in the consumer’s mind. According to Al Ries and Jack Trout’s book, Positioning: The Battle for your Mind, being the first brand to position themselves in a certain market will ultimately lead to success. This is because consumers usually keep the market leaders in mind. However, for Blackberry, the outcome did not turn out as desired. Why did Blackberry fail to succeed and maintain it’s leading position in the smartphone market? Is it too late to raise this company from the dead?

To maintain the leadership position, Ries and Trout stated that the brand must be willing to embrace change. This was Blackberry’s mistake that led to their downfall. Blackberry was always known for their convenient keyboard. As Apple Inc.’s iPhones and Google’s Androids began to surface and grow in the smartphone market, Blackberry failed to acknowledge their competitors’ touch-screen design. Blackberry wanted to stay loyal and continued producing with a keyboard. Because of Blackberry’s unwillingness to embrace change, the company began to come crashing down.

Recently, RIM released the Blackberry Z10, a touch-screen Blackberry. However, the release of the phone was not as successful as they had hoped. Blackberry had finally began to embrace the change in the market, but it was too late. Their previous success blinded Blackberry from acting fast to the changing market and failed to maintain their leadership position. This led to other competitors in the market to become steps ahead of Blackberry, as they gradually fall behind.

Is it too late for Blackberry to replicate their success? Can Blackberry recover from their major downfall or was being first their last impression on this growing market?

Source 1: http://www.theglobeandmail.com/report-on-business/the-inside-story-of-why-blackberry-is-failing/article14563602/

Source 2: http://www.quickmba.com/marketing/ries-trout/positioning/

Figure 1: http://www.techknowlogists.com/wp-content/uploads/2013/02/bbz10stevenson.jpg