Nick Taylor-Vaisey discusses in a recent blog post for Maclean’s the streaming behemoth, Netflix, and how its particular approach to content acquisition is yielding it handsome returns.

That is, Netflix actually examines activity on file-sharing websites popular among frequent pirating individuals in order to determine which purchases to make and extend to members. By doing this, the company has affected the halving of BitTorrent’s activity following its most recent endeavour venturing into the Netherlands. Finally, Taylor-Vaisey additionally divulges that some analysts are forecasting that through utilizing this clever approach, Netflix will be able to attain a valuation near to $75 billion.

Referring back to Carson Woo’s video lecture on Management Information Systems, it is easy to distinguish that this is precisely what Netflix has in place. Moreover, it is visible due to Woo’s informative video that said MIS is responsible for Netflix’s continued success, for the company has a very sturdy MIS, one that has allowed corroboration of all the data essential for determining and executing strategically genius steps such as observing activity among file-sharers.

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Taylor-Vaisey Blog

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Professor Jeff Kroeker’s article, featured in The Globe and Mail this past July, highlights a flourishing business (Salem’s Ethiopia) situated in Addis Ababa: one that was able to pinpoint the requisite procedure for expanding to become a profitable business while at the same time retaining the value proposition that attracted customers to it in the first place.

This article was enlightening because it reinforced the notion that profit does not have to be prioritized over affecting positive social change. The two can be pursued concurrently.

Apart from Salem’s Ethiopia, another good example of this fact is Mala Collective, a Canadian company which brings rudraksha bead jewelry from Bali to be sold by various retailers around the world. From the beginning, Mala Collective has ensured stimulation of the local employment rate in Bali. From those who plant the rudraksha trees to the workers active in the harvesting stage, job creation has been palpable, a great benefit to the local community. Additionally, it is a fair-trade company, so these numerous workers share in the profit of world-wide sales.
Given its steady ascent on the worldwide market, Mala Collective demonstrates that social enterprises have arrived. Moreover, gratefully, they seem here to stay.

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Sources:

Globe and Mail Article

Salem’s Ethiopia Main

Mala Collective Main

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The once lucrative cereal market is experiencing decline. Not too long ago, cereals such as Honey Nut Cheerios and Frosted Flakes were all the rage across North America: the perfect alternative to the whole-nine-yards, eggs and bacon and hash getup that used to define the typical breakfast. Cereal offered efficiency for those concerned about shortage of time; practicality for those who otherwise would have been getting up earlier than desirable to throw together full-fledged meals. Nowadays, however, even heavyweights like Kellog and General Mills, companies who made their name through cereal, are conceding to less than satisfactory demand for the product many North Americans came to know, love, though now apparently have grown bored with.

Why the disinterest? Simple. New products are coming out everyday that exceed cereal in regards to deliverability of most every one of its qualities. Yogurt is more efficient to have for a meal, there are made-to-go smoothies that are arguably superior in taste. Cereal has become easily and overly substitutable.

We’ve already covered Porter’s Five Forces and know that being able to contend with substitutes is essential to the longevity of any product. Perhaps cereal companies need a reminder of this.

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Sources:

Article Caroline Fairchild

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As Priyanka Vasudev observed the other day, the online retail industry is at an all-time high and its impressive ascent is showing no signs of letting up. In particular, subscription services such as JustFab (which Vasudev refers to in her blog) are positively flourishing. This is discernible just by taking into account the sheer volume of subscription services available at the present moment. From Birchbox to Ipsy to JewelMint, clearly there is profit to be made from the subscription business model.

To standard onlookers, though, it may be perplexing as to how, myself included. When these subscription retailers first started showing up everywhere online, I was dubious as to how legitimate they were. Taking into consideration what we’ve been discussing in class, though, it now makes sense to me what has occurred.

The subscription business model is booming because it truly caters to the customer. At least in regards to these recent e-retailers, each of which proffer a initial sign-up questionnaire to determine your “style profile.” It is an ingenious model as it utilizes IT in order to accumulate vital information on customers which it then harnesses in order to provide a seemingly catered shopping experience, personalized to the last detail.

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Ipsy Main

Birchbox Main

JewelMint Main

On October 25th, I had the pleasure of attending Chasing Sustainability 2013, a conference depicting the culmination of Khanh Nguyen, Connie Chen, and the CUS Sustainability team’s hard work. This conference featured multiple different companies and speakers who’d come on their behalf to speak to their employers’ remarkable commitment to fostering a sustainable mindset within the workplace. Some of these companies were as follows: KPMG, Ernest & Young, Deloitte, PWC, Whole Foods, Staples, and many more. Each and everyone of them enriched my knowledge and truly enlightened me to the very real opportunities present within the workplace to implement sustainable practices.

Regarding what we have been covering in class, though, one of the speakers whose address most intrigued me was Brandi Halls, who was there representing LUSH. She spoke about the company’s history and its enduring commitment to being an ethical retailer and it brought to mind the article we read for the class on Corporate Social Responsibility. In particular, the line that denotes “[shared] value focuses companies on the right kind of profits—profits that create societal benefits rather than diminish them.” Evidently, LUSH has been aware of this along. To this day it continues to generate shared value. Phenomenal.

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Chasing Sustainability 2013 Website

Creating Shared Value Article

In a recent blog post, Hujia Yang acknowledges Swedish retailer IKEA’s would-be-stint in the food industry which has actually flourished into a genuine component of their business. Yang points out that IKEA’s success pertaining to this endeavour is largely due to their establishing their point of difference early on. IKEA took the road less traveled by food retailers and opted for a menu consisting of staple items. This is a demonstration of their cognizance of the composition of their customer base. IKEA did not set out to be a behemoth in the restaurant industry; it simply aimed cater to its existing customers: fatigued shoppers with an appetite. In doing so, in recognizing the reality of who they’re serving, IKEA has been able to serve them better than they otherwise would have.

 Knowing who the customer is is integral to any business. Another company who this has occurred to is Kleinfeld Bridal. Kleinfeld Bridal has extended its services to assist clients with hotel booking for wedding guests. Genius, considering its client base is already made up of individuals who this particular service will appeal to: brides and grooms. The service is called Hotel Blocks and being very well received.

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Kleinfeld Website

Huijia Yang Blog