Monthly Archives: October 2013

Disney Needs Help from Ironman

Disney has been a popular international brand and a successful company. However, its Hong Kong Disneyland attracted only 4 million visitors in its second year, compared to its rival Ocean Park that attracted 7.4 million. Hong Kong Disneyland earned its first profit in the last fiscal year of $14 million – a miniscule amount compared to Disney’s $1.9 billion profit overall. Why has not Disneyland attract more customers in the largest populated country, China, than the United States?

Perhaps the main reason is cultural and background differences. The children in China have not been exposed to Mickey Mouse and other fairy tale characters as much as the Americans. The differences of western and eastern values have negatively impacted the interest of the Chinese to visit Disneyland. It is evident that culture has a significant influence on businesses.

After recognizing the success of Ironman 3 in Chinese box offices, Disney plans to create an Ironman-themed thrill ride. This project will be finished by late 2016 as the company expects this new attraction will lure in more visitors. As well, Disney hopes that the opening of a Shanghai resort will complement Hong Kong Disnleyland.

Works Cited
NY Times – http://www.nytimes.com/2013/10/08/business/international/to-lift-hong-kong-park-disney-deploys-iron-man.html?pagewanted=1&_r=0&ref=business
Image – http://graphics8.nytimes.com/images/2013/10/08/business/Disneyjp/Disneyjp-popup.jpg

Twitter is Growing Fast

Twitter’s growth strategy has proven successful as it plans to hear its initial public offering (IPO) level. Since Twitter’s launch in 2006, its community has expanded to 215 million active users on a monthly basis. Its revenue hit $253.6 million through the first half of 2013. From 2011 to 2012, its revenue has tripled and compared to the first half of 2012, the same period in 2013 is double the sales. Twitter’s user base has grown 78% from 2011 to 2012 and 44% in the past year. Despite its decline, only 10% of the 2.4 billion Internet users operate a Twitter account, so there is a growth opportunity. Twitter has become more than just a means of social interaction between friends, but evolved into the center of breaking news stories. As well, Twitter’s potential for online advertising enhances its enormous value.

The business model canvas is extremely helpful in organizing a company’s business. It can provide a snapshot of the company or a development of a future plan. Clearly, Twitter has implemented a well-thought growth strategy as it covered aspects from value proposition to revenue streams. The company is still on the upward ascent to enormous fortunes.

Works Cited
Globe and Mail – http://www.theglobeandmail.com/globe-investor/investment-ideas/strategy-lab/growth-investing/why-140-characters-may-be-worth-15-billion/article14712463/
Image #1 (Tweet keyboard) – http://cdn2.business2community.com/wp-content/uploads/2013/02/twit.jpg
Image #2 (Business Model Canvas) – http://foresightcards.files.wordpress.com/2012/05/business-model-canvas.jpg

Blackberry Taking it Private

Ever since Blackberry’s unsuccessful Playbook, the tech company’s stock has gradually fell. After its announcement that it has almost one billion dollars’ worth of unsold phone inventory and that the company will lay off 40% of its workers, its stocks plummeted more. Blackberry has been behind the world of smartphones and tablets as Samsung and Apple made significant advancements in their technology, such as the introduction of the touchscreen. One of Blackberry’s shortcomings is their inability to adapt to future trends.

The SWOT analysis can provide an overview of a company’s internal factors (strengths and weaknesses) and its external factors (opportunities and threats). It is useful for analyzing ways of improvements within business and helps study the market. Blackberry overlooked its threats – competition from Apple and Samsung – who have developed many substitute products as well as the opportunity of a change of consumer preferences towards the touchscreen.

Perhaps Blackberry’s only hope is to take the company private. As of now, the leading candidate is Prem Watsa from Fairfax Financial Holdings – an offer of $4.7 billion ($9 per share). However, Blackberry is ready to entertain offers from potential bidders such as IBM and Microsoft.

Works Cited
The economist – http://www.economist.com/blogs/schumpeter/2013/09/blackberry
Image #1 (Phone comparison) – http://img.digitaltrends.com/image/galbbios-620×480.jpg
Image #2 (SWOT) – http://cowanglobal.files.wordpress.com/2011/07/swot_img2.gif