I found this interesting article about entrepreneurship on Harvard Business Blog. In the article, the author suggests that there are three main questions to be considered before starting the business. The first question is ” What’s your city’s advantage”. Indeed, in order to start the own business, location is really important because consumer may have different preference in different region. Hence, it is best for the entrepreneur to identify the region that has highest consumer demand. In addition, by knowing the city’s advantages, entrepreneur can use those to overcome many obstacles in the future. Secondly, the author points out that exposure will be another key to reach success in entrepreneurship. Not only exposure to customers is important, exposure to competitor is also imperative as well. Competitor will feel the danger, and fear thus it can keep both companies motivated. Thirdly, the point of difference of the company is another important factor as well. When you have unique strategies or product that everyone else does not have, it can gain attention from consumers. To conclude, I think this is a great article for people who want to start their own business.

Link:

Wessel, Maxwell . “Three Questions to Consider Before Deciding Where to Locate Your Start-Up.”Harvard Business Review. N.p., 13 Nov 2013. Web. 17 Nov. 2013. <http://blogs.hbr.org/2013/11/three-questions-to-consider-before-deciding-where-to-locate-your-start-up/>.

In the past, Coca-Cola has been penalized on how the company destroyed local agriculture properties in order to obtain their resources. However recently Coca-Cola has declared to “zero tolerance ”  for land grabs  with social enterprise corporation Oxfam. The company announces it would value and protect local communities and traditional peoples’ right to access all the natural resources. After the announcement, the company has received lots of positive feedback from general public.

In my opinion, this campaign will lead to increasing in demand in Coca-Cola’s drink. Since the company is conducting an ethical business, people will prefer buying the product from Coca-Cola rather than other brands because they feel that they are contributing , promoting a positive well being of this society.

To comment on Jeffrey’s post about Twitter go public, I agree that it is too risky to invest in Twitter’s IPO.  Previously we have seen Facebook IPO was not really successful, hence, Twitter will most likely to have the same result since they are in the similar industry. In addition, just like Jeffrey has stated before, although Twitter’s revenue is 317 million, but the net income is in negative number. This insinuates that the company is still not profitable and will having lots of uncertainties.

Link:

“Coca-Cola vows to axe suppliers guilty of land grabbing.”theguardian.com. N.p., 08 Nov 2013. Web. 16 Nov 2013. <http://www.theguardian.com/global-development/2013/nov/08/coca-cola-suppliers-land-grabs>.

Recently, Snapchat has turned down Facebook 3 billion all cash-bid. Snapchat is a growing, popular photo messanging application developed by a 23 years old Stanford University student. The main reason why Facebook is interested in Snapchat is because Facebook primary revenue source is coming from mobile advertising towards teenagers; however, over the last couple months there were less teenagers using mobile Facebook app. Therefore, Facebook founders are thinking to overtake Snapchat because majority of Snapchat users are using the app via smartphones, where texting is a core function. As a result, Facebook can be more easily to target consumers and build up consumer segments while keeps Snapchat out of its rival.

Nevertheless, Snapchat believes that they worth more than 3 billion. The founder of Snapchat is waiting until early next year before considering any offers in the hope that Snapchat’s will have larger valuation by that time.

I am really amazed by Snapchat’s growth story, it is impressive on how the company expands its market so fast within 2 years. However in my opinion, if I am Snapchat’s founder, I will take Facebook’s offer at this stage. Although the company is still at the prosperity stage, but there are still lots of uncertainties in the future. Technology trend shifts so fast, it is unpredictable and no one has that sustainable competitive advantage.

Here’s a video on how people feel about this issue

Business News: Snapchat turns down $3 billion Facebook offer

Link:

Bercovici, Jeff. “Facebook Tried To Buy Snapchat For $3B In Cash.”Forbes, NOV 13, 2013. http://www.forbes.com/sites/jeffbercovici/2013/11/13/facebook-wouldve-bought-snapchat-for-3-billion-in-cash-heres-why/ .

In Canada, the demand for tea beverage has been rising significantly over the past few years, it is almost comparable to coffee. Back in 20 years ago, tea is not that popular among the public, especially in the baby boomer era. However, due to the change in lifestyle and health awareness, lots of people have shifted their preference to tea. In addition, the increasing immigrant from China and South Asia regions also plays a huge role on Canadian tea industry.

Starbucks, one of the largest multinational beverage corporations, had invested over 600 millions last year to acquire 300 Teavana chains store (60 stores are located in Canada). The company has big expansion plan, it forcasts to open 1,000 more Teavana locations in North America over the next 10 years. There’s lots of  reasons for coffee’s biggest player to move into the tea business. Study shows that there is a rising trend in Canadian tea consumption. According to Agriculture and Agri-Food Canada’s statistic in 2003, it proposed the demand for tea consumption would rise 40 per cent by 2020.

To comment on Brian’s post about LG shifts focus in advertising, I think LG has made a right choice.  LG certainly does not have the  power in smartphone industry like Apple and Samsung have; hence, it is good for them to focus different consumer segments. As a result, it can be the leading brand for the people who are not familiar with technology.

Link :

“Rising tea sales drive profits for beverage chains.” CBC NEWS 12 11 2013, n. pag. Web. 12 Nov. 2013. <http://www.cbc.ca/news/business/rising-tea-sales-drive-profits-for-beverage-chains-1.2424091>.

Recently, the Taiwanese company Pagatron ,main Apple Inc. supplier who assembles new iphone 5c , has facing slower order for the 5c model. According to the statistic, the net profit for the company was 84 millions in the third quarter, although it is higher than the third quarter last year, but it is still below the analyst forcast.  Back in May, the company had experienced the all time on the share price after it won the iphone 5c orders away from rival Hon Hai Precision Industry, the another  Apple supplier.

Nevertheless, Pegatron was reported by human rights group in China  for having workplace violations in three of its factories in summer. After that incident happened, Apple was thinking to add another manufacturer to assemble iphone 5c in order to increase competition for Pegatron and reducing profit margins. Apple is known to be diversifying its list of suppliers in order to reduce risks.

In my opinion, the primary reason why Pagatron losing orders is because the company does not  conduct the business in an ethical way. As a result, Apple Inc. will find a new supplier because it afraid that Pagatron is going to alter Apple’s reputation.   In  addition, another factor  that causes the company losing orders will be that the  iphone 5c itself  does not appealing to consumers. It is lacked of product uniqueness, it is identical to the iphone 5 handset, except with a  plastic color case.  Also, the point of difference of iphone 5c is to provide a cheaper, more accessible iphone; however, it is still relatively expensive for middle class people.

Link:

“Apple iPhone maker Pegatron’s profits below forecast.”BBC NEWS 11 nov 2013, n. pag. Web. 12 Nov. 2013. <http://www.bbc.co.uk/news/business-24896679>.

Business Development Bank has released a study on the trends that are growing in Canada consumer’s behavior; the top 5 trends are the buy-local movement,rising health awareness,frugality,the desire for customized goods,the impact of the internet.  Recently,consumers have noticed the importance of sustainability and environmental issues, hence, they begin to choose the local product. According to the statistic,around 80 per cent of consumers believed that it was more environmentally responsible to buy local products and it can also support the local economy. Also, consumers  are paying close attention on some ethical aspects of corporate business, they refuse to buy a product that is made from cheap, child labor in undeveloped countries.  In addition, not only consumers are rising awareness on environmental impact, they also become much more aware on their health. Populations in Canada are aging, hence, lots of consumers are thinking about the health issues while making purchasing decisions.

Moreover, because of the stagnant income, people are making the buying decisions wisely. As a result, this leads to consumers to have more desire on customize goods. People who are buying customize goods can maximize their utility while spending the money in a most sensibly way. Furthermore, internet has played a huge role on consumers’ mind. According to the study, the increasing amount  products research is done online; online reviews are critical as 70 percents of buyers are influenced buy these reviews.

In my opinion, it is good that BDC provides us with this study because companies can  adjust their marketing strategies and value propositions to fit into consumers’ trends accordingly. As a result, it can generate a positive economy impact. To comment on Brooke’s post about Google ‘s working environment, I believe it is part of Google’s management strategy. It gives the employees lots of benefits, in return, employees will satisfy about their work thus become more efficient and productive.

“5 Canadian consumer trends to shape the future of retail.”CBC NEWS 21 10 2013, n. pag. Web. 11 Nov. 2013. <http://www.cbc.ca/news/business/5-canadian-consumer-trends-to-shape-the-future-of-retail-1.2129072>.

Starbucks has faced a claim recently on how the company sets the coffee price higher in China than in other countries. In the recent years, Starbucks has expanded the market in China rapidly and soon China will be the second largest market behind United States.  In addition, Starbucks also appears to have much larger operating margin in China than in anywhere else. However, Starbucks defends that the price strategy is based on the local market cost such as real estate and labor, hence, the price will varied in different regions.

In my opinion, although lots of people  are arguing about Starbucks has discriminated Chinese’s customers , I feel  that Starbucks does not do something wrong. The main objective of a firm is to maximize profit , since China  is a growing market and has lots of demand on Starbucks coffee, raising the price of coffee a little bit higher will bring Starbucks lots of revenues.

To comment  Olya ‘s post on why Tim Horton’s has been so popular among Canadian customers, I think the primary reason is because that when canadian customers buy products from Tim Horton’s, it can give them a sense of patriotic feeling. Unlike Starbucks is a global multinational corporation that does not resemble specific group, Tim Horton’s value proposition is more targeted and depicted on  Canadian pride.  Since both Tim Horton and Starbucks are in the competitive market(selling coffee beverage), consumers will get the same utility(satisfaction) from buying either of these company. As a result, consumers will find the company that they are most related with, and in this case, will be Tim Horton’s.

Reference:

“Starbucks under fire in China over its coffee pricing policies.” BBC NEWS 21 10 2013, n. pag. Web. 11 Nov. 2013. <http://www.bbc.co.uk/news/business-24619544>.

Gmail is one of the leading web-based email systems with over 400 millions users world wide.However,Google has faced a wiretapping claim recently on how gmail reads and interprets users’ private messages without consent.During this lawsuit, Google defends that the purpose of auto-scanning email system is to provide better customer services  such as spam protection and priority inbox. Nevertheless, federal judges disagree with this argument. They criticize the Gmail scanning system is just the strategy which google uses to maximize its profit and advertising ;the benefit it provides has nothing to do with the service of email.  This is not the only time that Google faces a lawsuit on  privacy and ethical controversies. In September, the company has been charged  on  violating federal wiretap law when its collected emails and other personal data  through  private  wi-fi network in order to create street view program.

In my opinion, Google should not invade on customer’s privacy in order to gain profit.  As a long term effect,  people will not value Google as trustworthy company and it will definitely crush Google’s reputation and brand image. Profit is relatively important for the company, but it is not the only thing that matters.

To comment on Sophie’s post on how Chinese government  invests 2 millions on monitoring internet, I personally not surprised by Chinese government’s action.  It always has a strong censorship going on in China that controls citizen’s freedom of speech.  I think China still has a long way to go  to become a free, democratic country and dominates world’s economy like U.S.A.

SOURCES:

CBC NEWS, . “Google faces lawsuits over Gmail, Street View privacy.” CBC NEWS. N.p., 2 10 2013. Web. 6 Oct 2013. <http://www.cbc.ca/news/business/google-faces-lawsuits-over-gmail-street-view-privacy-1.1876594>.

Due to an unsatisfactory sales  performance of the new smartphone, Blackberry announced that the company had lost nearly one billion in 2nd quarter; the revenue also declines 45 percents compared to the same period last year. Although in august the company already cut down 4500 jobs in order to reduce expenditure, it still can not recover from that massive, devastating loss. Therefore, Blackberry recently  decides to make an alternative plan with it’s biggest shareholder- Fairfax Financial. The initial negotiation states that Blackberry agrees to sell itself for 4.7 billions to FairFax Financial and turn the company to private.

In my opinion ,the reason why Blackberry can not turn itself around is because the lack of innovation.  BlackBerry used to dominate the market  and held  50 percents of market share back in 2009, but in 2013 , it only left with 3 percents. There are lots of competitors in this market that constantly innovating and produce the product that has new, “wow-factor” to the consumers. For instance, majority of the mobile manufacture companies like Apple, Samsung have changed their mobile keyboard system on the touch screen; only Blackberry retains the traditional keyboard.  As the result, consumers ‘ preference change from traditional keyboard to touch screen one thus the demand for BlackBerry’s product decrease.

Sources:

“BlackBerry loses $965M in 2nd quarter.” CBC NEWS 27 09 2013, n. pag. Web. 28 Sep. 2013. <http://www.cbc.ca/news/business/blackberry-loses-965m-in-2nd-quarter-1.1870447>.

Fontevecchia, Agustino. “BlackBerry To Go Private In $4.7B Deal As Fairfax Bets On Enterprise Business.” forbes.com 23 09 2013, n. pag. Web. 28 Sep. 2013. <ww.forbes.com/sites/afontevecchia/2013/09/23/blackberry-to-go-private-in-4-7b-deal-as-fairfax-bets-on-enterprise-business/>.

China is gradually become one of the leading countries in today’s global economy. However, the communist government still has an aggressive censorship on internet and other social medias. People in China can not access onto the sites such as Facebook, Twitter or any website than contains political controversy issues. Recently, Chinese government has planned to open to up free accessibility of the internet in Shanghai’s free trade zone. The main reason behind it is because there are lots of foreign investors in this region and by open up the accessibility of internet, it will reach investors’ satisfaction thus captivate them for further investing.

In my opinion, China should have abandoned the regulation on internet usage in the past. In today’s world , the advancing communication like internet leads to  globalization of market, which results in increase international trade and world per capita GDP. Market, demand and supply are interconnected with every parts of the world; if China keeps self-isolation, the foreign investors would not come to China for investment.

To comment on Julie’s post about marketing to children, I agree that advertisement can have an enormous impact on children’s perspective. It is not ethical for company to promote anything based on it’s profits.  However, in today’s market economy, everyone is trying to maximize their own-self interest, that is just how the market works. Therefore, the best result will more likely be find the balance between integrity and profits.

Link:

Reuters, Thomson. “China to lower internet firewall in Shanghai free trade zone.” CBC NEWS 24 09 2013, n. pag. Web. 28 Sep. 2013. <http://www.cbc.ca/news/business/china-to-lower-internet-firewall-in-shanghai-free-trade-zone-1.1866688>.