Ryan's Blogs

In John Jantsch’s blog, he explains a method of working backwards to create a great customer experience. I realized what he was explaining was actually a reverse concept of the marketing funnel I learnt in COMM 101 class.

Source: donnellyeffect.com

The marketing funnel to my understanding is a tool used to highlight various stages that a customer goes through before making a buying decision. Now by using the method John explained (working backwards), the business would attempt to identify the different needs of customer from a time after the product is purchased, to the time the customer became aware of the product. The business is able to somewhat predict future needs of customers and hence satisfy them better; causing a greater customer experience.

What I particularly liked about John’s blog is how he uses an existing known business tool in a different manner, so as to generate more benefit to the business. By enhancing customer experience, the business is improving its customer relationships, an important building block for any business.

Apart from creating greater customer experience, I believe this method John has advised will also help the business identify where its product is currently lacking or deficient. The business would be able to add to its product’s value proposition beforehand and therefore introduce a better product.

Sources:

http://www.allbusiness.com/sales-marketing/16774153-1.html

The United Nations is funded through voluntary contributions from its 193 member states and has a set of well defined objectives from international peacekeeping to economic development. If a well-funded organization such as the UN exists, the question arises: Do we need social enterprise?

My answer is yes.

Social enterprise is a necessity according to me. While the UN may have the funds, it cannot  go to the ground level in every country to support those facing social and economic problems.

Source: timesofpakistan.pk

I was in grade 8 when I first read about the Grameen Bank, a microfinance organization for the poorest. At the time, I just thought of it as one of those charities. But recently, when the Grameen Bank was discussed in COMM 101 class as a social enterprise, the concept intrigued me. I learnt that it wasn’t a ‘charity’, but instead an organization driven by social objectives to solve social problems and ultimately improve society.

Organizations like Grameen Bank, though infinitesimal in comparison to the UN, are capable of addressing social problems better because they interact with problem-ridden individuals personally. The Arc initiative by the Sauder School of Business is another example that comes to my mind.  I find interesting that even Sauder students can help solve business problems by imparting just basic business management knowledge to African entrepreneurs.

I believe that while the UN works on its objectives, social enterprise can coexist all around the world to individually solve region specific social problems.

Sources:

http://skollworldforum.org/about/what-is-social-entrepreneurship/

http://www.sauder.ubc.ca/Global_Reach/ARC_Initiative/About_ARC

In October 2014, Tesla Motors CEO Elon Musk created great anticipation over a ‘product upgrade’ event by tweeting a clue a week before the event. Tesla’s stock prices had risen following the announcement, indicating the confidence investors had in Tesla for introducing a game-changer in the automotive industry. I too was caught in the web of social media excitement and  felt an eagerness to know what this highly innovative company had in store for the world.

Sadly, the ‘Big Reveal’ turned out to be a ‘Big Disappointment’ for many: the upgrades were not up to the expectations. However, I would not blame Elon Musk for not delivering enough on the hype created. Tesla Motors came into the automotive industry with a disruptive innovation; the general public was amazed and has since then set this high level of expectation from Tesla.

Tesla CEO Elon Musk at the Tesla D Event. Source: businessinsider.com

I would also defend Tesla on the grounds that the upgrades announced are still innovative and new. The Auto Pilot feature, for example, is the first of its kind in the market. While it may not be a huge upgrade, I would still say a car capable of parking itself in a garage once on a driveway or automatically changing lanes by putting on turn signals, is rather impressive. It adds to the list of features in Tesla’s value proposition to customers.

I believe that by this announcement CEO Elon Musk is guiding Tesla Motors along the right track of differentiating its product in its overall focus strategy.

Sources:

http://www.cnbc.com/id/102076711#.

http://www.forbes.com/sites/samanthasharf/2014/10/10/tesla-unveil-disappoints-costs-elon-musk-more-than-500-million/

In Alex’s blog, he details a timeline and analysis of the market performance of Windows’ previous OS and offers his opinion about the upcoming Windows 10.
Source: computerworld.com

Before I talk about Windows 10, let me first summarize Windows 8. Microsoft created a touch-centric OS in Windows 8 which could be used on PCs, laptops and touch devices; but it failed to win the crowd. Apart from the radical changes in the user-interface that Alex mentioned, I believe Microsoft failed to design a product suited for its customer segment. It basically forced a touch-focused OS onto its customers; majority of whom didn’t have a touchscreen on their desktop PC or laptop.

The reason I feel Microsoft can recover from the debacle known as Windows 8 is because it is rectifying its errors in the right way. Microsoft has started the Windows Insider Program, which allows registrants to access the latest build of Windows 10 and provide feedback about their experiences. Microsoft in return adds the suggested features and addresses any technical issues in the next build version released. With over 1 million registrants, I can confidently say that Microsoft’s plan is working.

I must add that this program is a brilliant way for Microsoft to be engaged with its loyal customers. It will enhance customer relations as the the customers will take pride in being part of the development process. I concur with Alex that Windows 10 will be accessible on all devices because this time Microsoft is working with its customers to build a better product.

Sources:

https://insider.windows.com/
http://www.zdnet.com/one-million-join-microsofts-windows-10-insider-program-7000034646/

In Aneel’s blog about Android’s new upcoming OS, he states various reasons for why Android’s tactics are flawed and may confuse customers.  I’d like to put across my views contrary to his opinions and conclusion.

Since the release of the iPhone in 2007, the smartphone market grew exponentially, inspiring the start-up of a plethora of tech companies. This brought in a range of new innovative ideas in to the market. A company could not survive in this particular market without introducing new versions of their OS every year. Therefore, Google needed to innovate its Android OS faster. Google successfully did this and  increased its market share from 0.5% in 2008 to 84.7% in 2014. Google wasn’t a first mover into the market but it established Android as a market leader because  Android is a customizable and reliable OS available on premium and regular smartphones.

Photo: sourcedigit.com 

As for the ‘ridiculous’ code names, Google started a humorous trend to help customers remember the many Android versions released. Every Android OS is named after a sugary treat or dessert in alphabetical order (Jelly Bean, KitKat, Lollipop). In my opinion, Google uniquely positioned Android in the minds of consumers by creating this trend.

In reference to the value proposition canvas, it is important for a product offered to solve the customer’s problem. I believe Google’s Android has done this well by addressing the needs of the customer and satisfying them through regular innovative additions in every OS update.

Sources:

http://arstechnica.com/gadgets/2010/02/iphone-and-android-biggest-winners-in-mobile-market-in-2009/

http://www.idc.com/prodserv/smartphone-os-market-share.jsp

For every business, there exist factors from the macro environment that can possibly affect its performance. In Canada, one such factor is the ‘Aboriginal factor’. Being an international student, I wasn’t too familiar about this segment of the population, and hence did not comprehend the impact of their influence. Upon my own research, I learnt that the land we now inhabit was ancestrally owned by these various communities ; each community having its own heritage. I realized then the level of importance for displaying consideration for these communities.

A recent widely-debated project involving aboriginals is the multi-billion dollar oil pipelines project by Enbridge, a Calgary-based company. This proposed project crosses over 25% of traditional territory and the community that belong to these lands feel that economic benefit is not worth the risk of a spill on their waterways. While I understand that the aboriginals have their fears about the project, I find it hypocritical that they outrightly reject the proposal while they have already shown business interest by involving themselves in other business related activities.

Source: cbc.ca

I would support Enbridge for the reason that they have promised to meet 199 conditions regarding the pipleline’s inspections and its effect on the environment. Also, I believe Enbridge is taking a step forward in the field of ‘Corporate Shared Value’. It is meeting its social responsibility of creating employment opportunities for society while also achieving its own objective of expanding its markets to Asia.

Sources:

http://www.vancouversun.com/news/There+will+pipeline/10122968/story.html

http://www.cbc.ca/news/canada/northern-gateway-pipelin-project-6-things-to-know-1.2469561

Amazon announced in July 2014 that it would further invest $2 billion in India to expand its operation, fueling the competition in one of the fastest growing e-commerce markets. The online retailer launched its Indian marketplace in June 2013 and in just over a year the revenues are close to crossing the $1 billion mark. The large consumer population along with the rapid adoption rate of smartphones has fostered this fast-paced growth.

Amazon’s move can be considered as one to step up its game. Amazon faces competition from Alibaba, a Chinese online retailer, whose total revenues were more than triple the revenues of Amazon. Alibaba enjoys exclusive access to the enormous Chinese e-commerce market, and is protected from foreign businesses penetrating its market segment. Recently, Alibaba’s IPO in the US market was ranked as the world’s biggest at $25 billion (Reuters, September 2014). Entering the Indian market and now expanding operations to increase revenues will help Amazon be more competitive.

In a recent trip to India, Amazon CEO Jeff Bezos had met Indian Prime Minister, Narendra Modi to discuss his expansion plans in the country. In a statement,  the CEO claimed  “With this additional investment of $2 billion, our team can continue to think big, innovate, and raise the bar for customers in India.” (Times of India,  July 2014). Both sides will greatly benefit from the expansion plans of Amazon.

Citations:

1. Reuters (July 30, 2014), Times of India, “India set to become Amazon’s fastest-growing market: CEO Jeff Bezos”

<http://timesofindia.indiatimes.com/tech/tech-news/India-set-to-become-Amazons-fastest-growing-market-CEO-Jeff-Bezos/articleshow/39298577.cms>

2. Elzio Barreto (September 22, 2014), Reuters, “Alibaba IPO ranks as world’s biggest after additional shares sold”

<http://www.reuters.com/article/2014/09/22/us-alibaba-ipo-value-idUSKCN0HH0A620140922>

Britain’s biggest grocer and the world’s third-largest retailer in the world, Tesco, has found itself involved in an accounting scandal that will only worsen the already existent crisis. “Last week, Dave Lewis, Tesco’s new chief executive stunned the City by revealing that a £1.1bn forecast of first-half profit, announced only a month earlier, had been overstated by £250m.” (Financial Times, 1 Oct 2014) The share prices dipped to a 10-year low and the sluggish performance continues for Tesco.

Scandals going unnoticed by top directors and executives of such large corporations deserves deep condemnation. Manipulation of financial information is more often than not, used for personal gain, and so this scandal must be investigated thoroughly to bring into light the culpable individuals. Tesco will face intense scrutiny in the coming months which will hamper it’s ability to compete against the growing European retailers.

The shortfall in profit is said to be caused by claiming revenues earlier and understating costs. Tesco in general has been in decline over the past years, and I feel this was a move also to showcase a non-existent strength to investors. Tesco revenues have been going down and it has lost a considerable portion of its market share to other European retailers. Tesco’s competitors are able to grow while Tesco is failing to maintain its growth and customers. The new CEO has a daunting challenge to restore Tesco’s public image and market success.

Citations:

Andrea Felsted, Caroline Binham and Claer Barrett (October 1, 2014) “Financial Conduct Authority investigates Tesco’s accounting woes”, Financial Times

<http://www.ft.com/cms/s/0/4e1cade6-4931-11e4-9d7e-00144feab7de.html#axzz3F3MyGY9q>

On September 24, Blackberry launched a new smartphone device called the Passport in an attempt to rebuild the company that lost its market share by failing to adapt. In Sean Silcoff’s article, “Passport to success? Blackberry pins revival hopes on new device”, it is mentioned that BlackBerry accounted for merely 0.5 per cent of the 301 million smartphones sold globally in the second quarter of 2014, a humbling fall from 13 per cent in 2011. These statistics clearly indicate a company which has lost its edge in the global markets but the Passport may just turn things around.

In the book, Positioning: The Battle for your Mind, Al Ries and Jack Trout state that “When there is a clear market leader in the mind of the consumer, it can be nearly impossible to displace the leader”. Blackberry has lost its general customer audience and is therefore focusing on a segmented group of customers: business professionals.  The smartphone, a squared-shaped device with a QWERTY keyboard and long battery life  is the right mix for the targeted segmented group. However, the Passport is only about $50 cheaper than the leading iOS and Android devices,which may not be so effective in making original users to switch-back to Blackberry.

If Blackberry is to enjoy the market share it possessed three years ago, it must not only reduce the price of the product,  but must also continually come out with new and more innovative devices to keep pace with the ever changing electronic market.

Citations:-

1. Sean Silcoff  (September 25, 2014) “Passport to success? Blackberry pins revival hopes on new device” The Globe and Mail.

<http://www.theglobeandmail.com/report-on-business/passport-sales-bode-well-for-blackberry-analyst-says/article20838923/>

Businesses around the world operate in ways that benefit themselves i.e., the business conducts its operation such that they earn profit. Operating with a primary objective on profit alone may drive businesses to ignore established laws and find a workaround the legal framework. Such is the case in the article “A Deadly Grind”, wherein women and children are employed to work in mines under harmful conditions. The business is well aware that this practice is illegal as well as unethical. Yet they choose to continue with their operations for higher profits.

“This is the ‘artisanal mining’ sector – a bureaucratic euphemism for the job of scavenging, digging and clawing a living from the harsh earth with bare hands and crude tools.” No such euphemism makes the conditions these children work-in less deplorable. Only a total revamp in the business’ practices with an ethical approach can improve the situation. In the words of Milton Freidman “There is one and only one social responsibility of business – to use it resources and engage in activities designed to increase its profits so long as it stays within the rules of the game.” Businesses can therefore work towards their goal of profit but must ensure that they conform to ethical norms while doing so.

Citations
(1) York G. A deadly grind. The Globe and Mail 2012 Aug 18.
(2) Zimmerli, W, Holzinger, M, & Richter, K (eds) 2007, Corporate Ethics and Corporate Governance, Springer, Berlin/Heidelberg, DEU. Available from: ProQuest ebrary. [10 September 2014].