Ryan Un's Blog

In a recent interview with Canadian Business magazine, BlackBerry RIM’s Chief Marketing Officer, Frank Boulben, gave some bold insights on the ever-changing mobile device industry, and where the upcoming BlackBerry 10 (BB10) will stand.

According to Boulben, the past five years in the mobile industry have been “the introduction of a new paradigm (smartphones).” What the BB10 seeks to do is cause a paradigm shift. Boulben states that in this new paradigm, “multiple computing units” (TV, PC, tablet, etc.) will be unnecessary; the BB10 will have enough processing power to handle all their jobs. RIM seeks to expand into the untapped “75% of the world that doesn’t have a smartphone yet,” specifically the developing world where people can’t afford to buy multiple computing units.

Despite BlackBerry’s sub-par performance as of late, Boulben believes that RIM has “many angles to win back or upgrade existing owners,” and that “consumers are ready for the next wave of innovation.” Clearly, BlackBerry will focus on Points of Difference over Points of Parity.

Do you think the BB10 will cause the revolutionary paradigm shift Boulben described? His views seem pretty radical, but I’m still quite interested to see what BlackBerry has to offer.

 

References:

http://www.canadianbusiness.com/blog/sales_and_marketing/103132–rim-cmo-frank-boulben-talks-blackberry10-and-next-gen-mobile-computing#.UKmzO_OqaOU.email

http://rimdevblog.files.wordpress.com/2012/05/bb10_devalpha2.png?w=154&h=300

As many people know, The Economist is an extremely popular newspaper “focusing on international politics and business news opinion.”  What I will be focusing on in this post is the “Schumpeter” blog column of The Economist.

The “Schumpeter” column, introduced in September 2009, is written by Adrian Wooldridge and his colleagues. It is named after the famous Austrian-American economist, Joseph Schumpeter, and is the business and management column of The Economist. It “provide[s] commentary and analysis on the topics of business, finance and management.”

“Schumpeter” is extremely diverse within the fields of commerce. It covers business with regards to politics (such as the recent presidential election), law (in the case of Kweku Adoboli and his trading scandal), entertainment (Disney buying Star Wars), technology, stocks, and just about everything you can think of in the business world. It even has a series of posts entitled “An A-Z of business quotations,” featuring wise and insightful business-related quotes by virtually anyone, ranging from Homer Simpson to English Philosopher Francis Bacon.

I would definitely recommend “Schumpeter” to anyone looking for a good read about the business world. It is relatively easy to understand, not too dry, and posts are frequent/up-to-date.

 

References:

http://www.economist.com/blogs/schumpeter

http://media.economist.com/sites/all/themes/econfinal/images/the-economist-logo.gif

 

In Helena Lin‘s blog post, “PG-13 is so last year,” she talked about the new Cineplex VIP Cinemas, featuring reserved seating, a specialty food menu, a private lounge, and a 19 and older restriction. However, this all comes at a relatively hefty cost of $19.50, $7.00 more than the general admission price. At the end of Helena’s blog post, she asked: “Would you be willing to pay extra for a “VIP” movie experience?” My answer is: Yes, I would.

For me, the experience of going to the movie theater isn’t all about the movie itself. Yes, it’s an important part of the “night out,” but as with most people, I usually go to the movies with my friends. If I just wanted to watch the movie, I could watch it online, or wait to rent the DVD. Therefore, I expect a more social experience when I go out with my friends. What we usually do is: go out for dinner together, watch the movie, then buy drinks (bubble tea) afterwards. With all this included in the VIP Cinema package, people like my friends and me can now get the entire “movie night out” social experience in one go.

 

References:

https://blogs.ubc.ca/helenalin/2012/10/24/pg-13-is-so-last-year/

http://www.theglobeandmail.com/globe-investor/cineplex-targets-grownups-with-new-toronto-theatre/article4612845/

http://beaconnews.ca/wp-content/uploads/2012/09/Cineplex-VIPAuditorium-lounge.png

Julie Deane, founder of the Cambridge Satchel Company, began with an idea to bring back traditional leather satchels from her childhood. She has since turned £600 from her kitchen table (in 2008) into a £12 million company that ships satchels to 100 countries worldwide.

Bloggers were instrumental in the advertisement of the satchels. Julie sent bloggers and fashion editors information, photos, and samples of the satchels, asking them for feedback. As a result, the millions of people who followed those bloggers and their opinions helped to spread the word. This certainly seems like a good (free!) way to advertise.

Julie’s satchels are now quite popular around the world, having been carried by famous celebrities like Zooey Deschanel and Daniel Radcliffe. Google has recently chosen Julie to star in its new Google chrome ad for her “amazing entrepreneurial spirit, the success of her brand and the role that the internet played in the success of her business.”

The company is self-sustaining, never having borrowed a single pound from anyone. Moreover, Julie is adamant that all of her products are handmade in the UK.

However, former manufacturers have recently started a rival company, Zatchels. Are more emulators on the way?

 

References:

http://www.thenextwomen.com/2012/09/17/julie-deane-founder-cambridge-satchel-company-star-new-google-chrome-advert

http://fashion.telegraph.co.uk/columns/bibby-sowray/TMG9511851/The-Cambridge-Satchel-Companys-starring-role.html#.UJXRRwEJhDs.email

http://www.thenextwomen.com/sites/default/files/cambridge-satchel-company-logo.jpg

Nintendo hasn’t been doing too hot lately, revealing that this fiscal year’s net income may be 6 billion yen, almost a quarter of the 20 billion yen estimate. Even worse, Nintendo has recently confirmed that it will be making a loss on every sale of its upcoming gaming console, the Wii U.

Nintendo hopes to sell 5.5 million units of the Wii U during the fiscal year, at $300 each. According to senior managing director, Yoshihiro Mori, “Manufacturing costs are expensive, and [Nintendo] priced the machine at a level customers would accept.”

So how does Nintendo plan to profit? The idea is that they will eventually make money through add-on sales (such as extra controllers and video games), and possibly cutting manufacturing costs in the future. This isn’t a strategy that’s unheard of; Sony and Microsoft had a similar strategy with their PS3 and Xbox 360, respectively.

Although this strategy may be somewhat risky, there’s no better time to release the Wii U than now (November 18), considering the holidays are just around the corner. Plus, Nintendo will have an early-game advantage against rivals Sony and Microsoft, who are just starting to release big news on their upcoming consoles.

 

References:

http://ca.ign.com/articles/2012/10/24/nintendo-will-sell-wii-u-at-a-loss

http://www.bbc.co.uk/news/technology-20095125

http://papelpop.com/papelpop/wp-content/uploads/2012/09/wiiu.jpg

Prior to the release of Windows 8, Microsoft reported a 22% fall in quarterly profits. Total revenue fell 8% to 16 billion.  What are the reasons for this?

One of them may be the recent shift in trends, from laptops to the increasingly popular tablets. This includes rival company Apple’s iPad, and with the release of the new iPad 4 on November 2nd, things may get even worse for Microsoft.

Another major reason is the fact that Microsoft deferred $1.36 billion of revenue. Over 50% of this deferred revenue ($783 million) came from the licensing fees for PCs pre-loaded with Windows 8, which could not be recognized until the new operating system came out later on October 28.

Microsoft also deferred $384 million for Windows 7 PCs that were eligible for a $15 upgrade to Windows 8, as well as $189 for PCs shipped with Microsoft Office 2013 (or are eligible for an upgrade to it).

The fact that Microsoft had such a sharp fall in profit and failed to meet analyst expectations caused shares to fall 3% in extended trading.

Microsoft expects to make a huge comeback with the release of Windows 8 and the new Microsoft Surface tablet. With these two products receiving generally mixed reviews, though, can Microsoft pull it off?

 

References:

http://www.bbc.co.uk/news/business-19999901

http://www.itproportal.com/2012/10/19/microsoft-quarterly-profit-tumbles-22-due-to-weak-pc-sales/

http://i40.fastpic.ru/big/2012/0804/19/8b343c708caa569a93efc60ae159ce19.png

By now, most young people and perhaps even adults worldwide have probably heard of South Korean rapper PSY’s catchy dance tune, “Gangnam Style.” How did a song so culturally Korean-based expand universally to top even the American iTunes chart?

Firstly, Gangnam style “intentionally lacked a copyright.” This effectively makes the song “more ownable;” the lack of a copyright allows people to easily create parodies of the song, re-stylizing it with their own personal flair and spreading it along to others.

Another important thing to note from a marketing perspective is that PSY used “crowd sourcing” to choreograph the dance “instead of relying on his internal team.” By taking in suggestions from the entire Korean dance community, PSY was able to “increase creativity” and produce the now famous “invisible horse dance.”

Gangnam Style also possesses an “emotional denominator that resonates across cultures.” Unlike most other pretty-boy pop stars, PSY’s appearance much more resembles the common man. Furthermore, the anti-materialism theme during a global recession has helped broaden the song’s appeal. These factors have allowed Gangnam Style to spread across the globe,  even breaking the culture and language barrier.

Gangnam Style’s marketing strategy: get people in on the fun.

 

References:

http://blogs.hbr.org/cs/2012/09/marketing_gangnam_style.html

http://www.allkpop.com/wp-content/uploads/2012/08/20120820_PSy_Gangnamstyle.jpg

 

Since Facebook’s eagerly awaited initial public offering (IPO) of $38.00 (U.S.) per share on May 18th, its shares have fallen to $20.28 (U.S.) each. How did this happen to such a dominant social networking service in just four months?

Facebook’s crisis arguably started when General Motors Co. announced it would be removing its paid ads from Facebook because “it didn’t believe advertising on the site was effective.” Two days later, when Facebook’s IPO began, it immediately started dropping. This further hurt Facebook as other marketing firms began to doubt it as a viable place for advertising.

In just three months, Facebook fell from a near-hundred billion dollar “social media darling” to $46-billion (U.S.). In a desperate bid for advertising, Facebook “began experimenting with ads that pop up in user’s Facebook feeds – even if they haven’t agreed to accept messages from that advertiser.”

Recently, Facebook has taken a major blow from the financial journal, Barron, which stated that “the company is overvalued and may drop to $15.00 (U.S.) a share or lower.” Facebook’s shares fell up to 11%.

As of September 25, 2012, Facebook shares are worth $20.28 (U.S.) each.

Is the stock a buy? Right now, I don’t think so.

 

References:

https://www.google.ca/finance?client=ob&q=NASDAQ:FB

http://www.economist.com/node/21554532

https://secure.globeadvisor.com/servlet/ArticleNews/story/gam/20120818/RBSOCIALCOVER0817ATL

http://www.bbc.co.uk/news/technology-19699205

http://business.financialpost.com/2012/09/24/facebook-sinks-after-barrons-says-stock-only-worth-us15/

http://www.toonpool.com/user/5624/files/space_x_launch_1687755.jpg

Apple’s manufacturing partners and subcontractors in China are allegedly using extreme labour conditions for the completion of their products.

According to the New York Times, “Chinese factory workers are forced to work overtime without a single day off in the week.” Working conditions within the factories are unsafe as well: “about 140 workers were injured two years ago at an Apple supplier in eastern China while they used a poisonous chemical to clean iPhone screens. Seven months later, two explosions in iPad factories killed four workers and injured 77.” Of course, these workers are underpaid; they receive a measly $8 (collectively) for each unit produced, a small fraction of the iPad’s $499 sale price. Conditions are so extreme that there have even been numerous cases of attempted suicide (19, according to the article), prompting suicide nets to be installed in the factories. Apple’s Chief Executive, Tim Cook, has recently hired the Fair Labor Association, which is now looking into the case.

The main ethical issue here is the exploitation of Chinese factory workers. Will you still purchase Apple products knowing the conditions under which they are made?

 

References:
http://digitaljournal.com/article/318569

http://mashable.com/2012/03/07/ipad-made-ethically/

http://www.dailymail.co.uk/news/article-1282481/iPad-factory-suicides-China.html

http://www.ibtimes.com/articles/311137/20120308/apple-ipad-foxconn-slave-labor-contract-sumofus.htm

http://www.ctvnews.ca/sci-tech/apple-iphone-s-chinese-manufacturer-faces-labour-complaints-1.953035

http://www.ilovetech.it/wp-content/uploads/foxconn3.jpg