Monthly Archives: October 2014

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>