PNW LNG and Its Community.

Pacific NorthWest LNG has proposed to build an extraction facility near the mouth of the Skeena river. This is facing opposition from a group of six First Nations as the project is perceived to greatly damage the surrounding river area and disrupt the spawning of salmon (Skeena River).

The news article continuously describes the opposition of the six First Nations groups’  to the proposed project as “putting the project at great risk”. The opposition definitely does bring a halt in the proposed operation. Yet, I believe that the input of the First Nations community brings in a different perspective that was either chosen to be ignored or was not foreseen at all. Due to the opposition, PNW LNG has updated their infrastructure model which is now less invasive to the environment. The opposition may have prompted the company to reinvent the model to become much more efficient and compliant.

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(Images via PNW LNG)

Works Cited List

 “Skeena River First Nations Oppose Petronas LNG Plant near Prince Rupert.” CBCnews. CBC/Radio Canada, 05 Nov. 2014. Web. 10 Nov. 2014.

Response: Online Vs. In-store Shopping

Lanny Pong’s blog post on Staples’ decision to close 15 store locations in Canada detailed the usual behavior of the 21st century retail industry (Pong). Many physical stores simply cannot compete with the convenience and comfort that online shopping offers. As I was reading through Lanny’s blog, I realized that there is very little logical reason for consumers demanding stationary and office supplies to make the effort of coming to a physical Staples store. This specific product is almost completely better off bought online. The biggest reason for consumers to come shop in store when given the option to shop online is that they need to test and hold the physical product before buying. However, stationary products can rarely be tested in store, and all we end up seeing is the packaging, which can be seen online as well.

This is the point when I realized that the emergence of online shopping affects different product groups more than others. Products that are  long-term investments (i.e. housing, cars), and groceries are  possibly the products that stand strong against the ebb of online shopping. Physical stores that have their store atmosphere as their Point of Difference will continue to attract customers as well. I used to think that consumers continued to shop in store because they did not respond well to changes in societal consumer behavior. However, there may be more layers to this.

 

Works Cited List

Pong, Lanny. “Online vs in store shopping.” Lanny Pong’s Blog. Oct.4, 2014. Nov.9, 2014 (https://blogs.ubc.ca/lpong/)

On Young Industries (Part1): Blogging

A Beautiful Mess is a lifestyle/ D.I.Y/ fashion blog geared towards women, a blog that I used to follow frequently for approximately a year. During this year, I have realized that their blog became a business enterprise, whereas it started off as a mere personal account of the writers’ lives and interests.  As an avid reader, I started to notice that more and more blog posts were sponsored. I understood that a method (maybe the only method) to make blogging a full time job is to use sponsors in their blog posts and advertise on their side banners.

This blog post encapsulates the rising industry of blogging and explicitly states that it is just like every other goods/ service industries. Her explanation of the industry is highly significant because she was able to make a career out of blogging very organically. She stuck with her original mission of sharing creative projects with her readers but smartly incorporated sponsored posts to her major body of work (Larson). As an ex-reader, I can say that I supported her other business ventures and I remember not feeling like I was exploited and capitalized off of as a consumer of her service. Thus, the tips and advices she includes in the above blog post is very important to the up-and-coming industry of blogging, that will likely expand and evolve to be something much more significant.

Works Cited List 

Larson, Elsie, “On Young Industries (Part1): Blogging.” A Beautiful Mess. Mar. 19, 2014. Nov. 5, 2014                                   ( http://www.abeautifulmess.com/2014/03/on-young-industries.html).

Firechat: Off grid messaging.

I stumbled across my classmate Adarsh Datt’s blog post about the newly introduced messaging app, Firechat. I have never heard of the app before reading his blog post. The concept of the app intrigued me, thus, I decided to do a little more research. Upon reading the CNN article on the role of Firechat during the recent Hong Kong protests and the app itself, I understood that Adarsh Datt’s opinion that the app will not experience significant growth may be right, but for different reasons. Adarsh thinks that amidst the modern interconnected world, a messaging service that relies on the “mesh network” is redundant. In his opinion, even the suggested places of use would not require the app for an extended period of time and thus become obsolete to consumers/ users (Dhatt).

However, the usefulness of apps that rely on the mesh network is immense. It could make search and rescue operations much more efficient. Emergency situations could be relayed faster to those who can respond. The current “everyone within the close proximity can see” function of the app is especially favorable in the above situations. Of course, this benefit will be truly experienced if the number of Firechat users increase dramatically.

The concept behind mesh networks is very vague to the general public. Due to the lack of public understanding behind the mechanism of the network, users may deem it to be not secure. Additionally, the app currently does not have a private chat function and everyone using the app in close proximity can see all messages sent. The app will possibly not increase in popularity until it can provide the chat function. Fortunately, the developers are working on implementing the private chat function.

 Works Cited List 

Dhatt, Adarsh, “Firechat “off the gird” Messaging.” Adarsh Dhatt’s blog. Oct.5, 2014. Nov.8, 2014 (https://blogs.ubc.ca/adhatt).

Riot Games: A Company With A Different Business Strategy

The New York Times article on the creator of the popular online multiplayer game “League of Legends (LoL)” revealed a different path towards profitability. Riot Games, the creators behind LoL, have a vision that embraces player experience. At the time of LoL’s introduction (2009) the market for online, freely download-able games occupied a small percentage of the gaming industry, just because this business strategy is not the industry norm in the USA. The status-quo was that (and it still is) games will be made available at high prices or subscriptions and to be played on expensive game consoles (Segal).

To the non-gamer general public, companies such as Riot Games, and the industry in general is perceived as a “trivial”. However, this article revealed to me that this exact company is implementing a transient competitive strategy, whereas the top MNCs are clinging on to their competitive advantage, refusing to let go. An online gaming industry needs to be updated continuously, to have new features so that the gamer experience can be optimized. This effectively illustrates that Riot Games chose to improve upon their current product, instead of deciding to expand their product portfolio to increase revenue, once a certain profit objective has been reached.

Riot Games seems to be also aware of the immoral behavior of its users that is expectedly fostered on an anonymous online gaming platform. The company has created a system for vulgar and threatening users to be issued warnings and consequences based on violations of those warnings.  Riot Games is determined to take responsibility against unethical action of its consumers, which further optimizes the experience of other users. This is a business strategy that puts the customer on a pedestal. Profit will only be reaped when the users are truly happy.

Works Cited List

Segal, David. “Behind League of Legends, E-Sports’s Main           Attraction.” The New York Times. The New York Times, 11 Oct. 2014. Web. 11 Oct. 2014.

Yellow Pages: A Response to A Disruptive Innovation.

Google is a disruptive innovation, and not only did it affect the tech industry, it affected many other industries that relied on providing information to consumers. Yellow Pages is one that felt its impact. Google as a search engine is everything that Yellow Pages encompasses, but larger and more sustainable in terms of saving paper. In the end, that big thick floppy yellow book was used as a door stopper in many households around the world.

Now the Yellow Pages brand in Canada has introduced a program called Shop The Neighborhood. It essentially connects local small-medium sized businesses and consumers to a central directory online. The business owners will offer special/ exclusive deals on the website, and by doing so attract even more customers. The service is especially appealing to business owners since being part of the initiative is free (Infantry).

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Yellow Pages is offering free marketing and an additional distribution channel for small business owners. The fact that this venture is completed fully online is achieving the initial mission of the publishers publishing various Yellow Pages in various countries and cities. It is directly directing customers and businesses to each other. This time around, the platform is more accessible via the internet and heavily reduces paper waste. The program opens up a channel of marketing that is other than the usual Facebook page and ad on Google.

Works Cited List 

Infantry, Ashante. “Shop the Neighbourhood Program Generates Buzz for Local Businesses | Toronto Star.” Thestar.com. Thestar, 03 Nov. 2014. Web. 09 Nov. 2014.

HP To Split in Half

It was recently announced that Hewlett Packard has decided to create two separate entities,  with one  carrying out the production and supply of PCs and printers (plus printing related products). The other division will operate the production and distribution of various softwares and PC compartments/ hardwares (Anders) .

The decline of the Roman empire was attributed to many things. One of them was over expansion. The “uncontrollable” growth of HP was probably not the pushing reason of this division (many conglomerates have grown and still continue to exist in many countries) , but possibly a cause for taking a preventative measure in a stagnant industry such as the one they operate in. Smaller units allow energy and resources to be diverted fully into a single focus.

This division does eliminate a benefit of synergy that HP once had. In times of need the resources, expertise and money of the other division can not be easily used. However, the split smartly paired up printing with PC. The PC industry thrives on innovative and frequently changing design, whereas customers demand pretty much the same design specifications from printers. Ink cartridges also require little resource input for R+D and have high profit margins. The stability of the printing section will grant continuous revenue stream and allow creative energy to be diverted to the PC section.

Works Cited List 

Anders, George. “Hewlett-Packard Plans To Split In Two, WSJ Reports.”Forbes. Forbes Magazine, 05 Oct. 2014. Web. 05 Oct. 2014.

Marlboro of Marijuana

Legalized marijuana industry in Colorado faces a problem unlike any other product.

The legalization of marijuana in the state of Colorado is seen as a progressive move that will generate and is generating millions in tax revenue. Strict regulations that dictate the production, sale and distribution of marijuana precisely accompany this legalization. The regulations are obviously set up so that consumers and the society in general can be protected. However, they are preventing specialization and economies of scale (The Marlboro) . The industry in Colorado is becoming a test bunny for the rest of the USA to observe live, how a legalization of a psychoactive drug in only one state is prohibitive in growth. From the perspective of gaining greater tax revenue, marijuana should be legalized at the federal level so that businesses could benefit from institutional infrastructure.

I agree with the author of the article. When it comes to the production, and sale of a psychoactive drug, I would prefer the product to come from a large corporation with massive economies of scale and an established business practice/production method.  I wonder why I have this intuitive trust towards large corporations over smaller local businesses for this specific product. Large corporations in the USA and many other countries have been known to lobby governments and politicians to manipulate laws and regulations for the benefit of their company and the disadvantage of society. We expect bigger companies to be under more regulation of the government, to be heavily watched and observed. However, large companies have also got resources and the capital to influence the behavior of politicians and legislators. Yet, my observation is also coming from large companies that operate in the commodity industry. The tables may be turned for companies that operate in the marijuana industry, a product that is very controversial and has many opponents to its legalized status.

Works Cited List

“The Marlboro of Marijuana.” The Economist. The Economist Newspaper, 08 Nov. 2014. Web. 09 Nov. 2014.

Coca-Cola’s Mascot: The Polar Bear

Coca Cola has been using polar bears as its brand mascot since 1922, when it first appeared alongside the company’s logo on a French print ad. From then on, polar bears have become the official mascot of the company during the winter season, especially during the holiday season alongside Santa Claus. The article explains briefly that consumers tend to disassociate brand mascots from the real wild animals if the mascots are more anthropomorphized (Frazier).

In the case of Coca-Cola, its brand mascot has started to be frequently associated with climate change and how that has affected polar bears. The writer of the article also notes that under the current environmental circumstances, Coca-Cola and many other companies that employ animals as mascots have contributed certain amount of money to charities that benefit these animals (Frazier).

As a brand valued higher than many countries’ GDPs, marketing expenses usually go towards keeping brand awareness constant within it’s large consumer base. The coke product of the Coca-Cola Company has possibly saturated the market for carbonated drinks to its fullest extent. Therefore, most of its strategic decisions for the specific product are for the purposes of extending its product life cycle. Additionally, the polar bear is a small fraction of Coca-Cola’s advertising campaign done nationally and internationally. For example, we may have seen the videos of people hugging Coca-Cola vending machines for free cola. Thus, if Coca-Cola is under fire for spending minimally on improving the living environment of polar bears, should they adopt the cuddly white bears as their mascot in their future? Is the association between them and polar bears unbreakable? I don’t believe so. Coca-Cola has become a household product staple enough to be profitable without any advertising campaign, even in midst of all the criticism and research towards its adverse effects on human health.

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(Google Images)

Coca-Cola and many other brands that use animals as mascots have been possibly publically pushed into spending capital on charities associated with their mascots. When the brand is a household brand (such as Coca-Cola and Kellogg’s) they could be responsible for taking the consumers’ mind off of the troubling situations that the wild animals face in reality. As the article explained, the mascots look less like their wild, real counterparts and leave a more cartoonish, fictional impression on the consumers. This impression is not an incentive for consumers to care about the wild animals. I believe that the companies’ contribution to charity is a compensation for the effect they have on their consumers’ perspectives regarding the state of the wild animals.

 

Works Cited List

Frazier, Mya. “Should the Polar Bear Still Sell Coca-Cola?” The New Yorker. The New Yorker, 06 Nov. 2014. Web. 06 Nov. 2014.

 

Technology Revolutionizing one Fast Food Chain

The Melt is one of the newest eateries to have opened up in the  state of California. The Melt is a chain of around 15 restaurants that offer only one product, grilled cheese. It then makes the approach even more simple by offering only 8 items on it’s menu at a given time, 4 classic sandwiches and 4 specialty sandwiches (Robinson).

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The Melt raised an astonishing figure of 10 million USD in venture capital. The question is, what is the secret behind raising 10 million dollars in venture capital. The business premise of the Melt is astonishingly simple. It certainly is different from the technology start-ups which tend to raise the highest figures in venture capital.

Jonathan Kaplan and his team of management seem to be pushing the envelope on what we will define as the go-to destination of the future. The restaurants exude an atmosphere of urban/ modern minimalism, which perfectly fits the modern and changing atmosphere of the technology industry. Furthermore, the restaurant is also greatly integrating information technology to speed up the customer ordering process. Unlike many other restaurants and establishments, the Melt has not waited until it is a certain size in order to reinvent its customer experience, but dived right into it from the very beginning. This is exactly the benefit of having a 10 million dollar fund and an arsenal of experienced managers.

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(Images via Business Insider)

Jonathan Kaplan exhibits the nature of a certain type of entrepreneur. I have come back and updated this draft after Comm101’s Nov 4th class. The class introduced us to the founder of Naked Coconut. Paul shared us his vision of the company in 5 years, which was to have the business sold. This response was definitely expected, but I wondered how someone would be able to hand over 6+ years of their effort into another, especially after the encountered hardships of a start-up. Now, due to Jonathan Kaplan, I understand that entrepreneurs will be happy as long as they are innovating and taking on new ventures. The world needs entrepreneurs with the experience of overcoming start-up challenges and turning them into flourishing corporations to do it all over again.

Works Cited List 

Robinson, Melia. “We Can See Why People Are Crazy About A California Grilled Cheese Chain That Raised $10 Million In Venture Capital.”Business Insider. Business Insider, Inc, 27 Oct. 2014. Web. 05 Nov. 2014.