Shelby So's Blog

There’s so much talk nowadays of how “the rich are getting richer and the poor are getting poorer”. We have yet to see a particularly successful solution to this problem. It’s a global issue. In every country, there are the small wealthy part of the population compared to the many middle class and dirt poor. Even if the “poor” in Canada may not be the same in say, Rwanda, every country has this large differentiation between the rich and the poor.

I don’t have a solution to this problem. Heck, I wouldn’t even know how to approach it, from a local or a global scale. But I’d like to discuss the question, “if the UN was fully funded, why would we need the Arc or the Social Enterprise?”. It’s an interesting topic, but I think it could tie in to what I mentioned before. The difference between the rich and the poor is a global issue of large proportions. It can’t be fixed in one fell swoop(as far as I know). In such a way, even if the UN were fully funded, it would not be able to provide a sustainable solution for all global issues. There are simply too many and are too large. Sure, the UN could throw money at the problem. But let’s be honest, money runs out, and the UN has so many of the world’s problems to deal with. It’s too spread out. The arc initiative and social enterprise are unique in that they target smaller communities in need and can produce sustainable solutions, though at a small scale. But these small effects can add up as more and more people are involved. The arc initiative and the social enterprise could have large, lasting effects, than the UN could possibly do on its own.

I was browsing classmates’ blogs today and came across Jessica Tse’s blog. What caught my eye, particularly was her post titled “Social Media and Business Positioning“. Jessica highlighted how, when the iPhone 6 first came out, Samsung was immediately on the ball, “ridiculing Apple’s new iPhone 6 bending controversy”

She compared it to Pepsi’s old ad campaign, in which they ridiculed Coke. Was Samsung not simply doing that to Apple? Apple already had the competitive advantage, simply because it was “first”. It’s all about positioning, right? While Samsung is getting more and more technically advanced, Apple is still ahead in the many consumers’ minds simply because Apple became innovative “first”. I completely agree with Jessica in the fact that Samsung is trying to reposition the iPhone 6 in the eyes of the media.

Will it be successful? Was it? Personally, I don’t think so. It may have brought about some laughs but in the grand scheme of things, even if Samsung phones are just as good, if not better than iPhones, Apple still has that competitive advantage of being seen as a status symbol. I definitely wouldn’t say it hurt Samsung. Certainly got some attention. But in a way, I’d simply call it “real-time marketing” – Reacting to whatever comes up, as fast as possible.

Such marketing strategy was mentioned on Adweek as it discussed a parody of real-time marketing.

While I wouldn’t completely say that Samsung is catching up to Apple consumer-wise (I’m not one to judge on the actual quality of their phones), I agree with Jessica that their real-time marketing was a very clever way to reposition Apple in the eyes of consumers. On the other hand, it’s real-time marketing. It may be cute and funny at the time, but it will likely not have a lasting impact.

Source: Boxyroom.com

Crowdfunding has become more and more of a phenomenon as more people hear about it. It has made its way both into business magazines and social media. Browsing Adweek, I came across a project that had been funded over 2000% of its goal. Shortly after, I logged on to Facebook and stumbled upon a joke of a product, the Nophone, which was, hilariously, funded 3 times over its original goal. No sooner had I done that, my dad told me that he had just pledged $25 to the fourth Video Games Live album.

Personally, I think crowdfunding is an ingenious way to start a project with an extremely large amount of benefits. There’s certainly the aspect of money for the project, of course, and reduces the need for a few, rare, rich investors, but crowdfunding, in a way, provides some market research for the company or the individual. The amount of funds raised, supporters, and comments can really help the host get a sense of how successful their product may be. On the other hand, it can also be a way of marketing as people who would not have heard of the product otherwise, will pitch in to the product. Certain groups provide bonuses such as exclusive songs or posters for high pledgers, merely another incentive to help fund a project.

I’ve seen the success of crowdfunding and while it may not be the right way to approach every single project, it could certainly help out many.

Image Source: Get Busy Media

I recently stumbled upon the blog “Get Busy Media”, a small business blog focused on “helping […] start up businesses improve their marketing and operations”. One of the main posts that caught my eye was the post “5 Things Publishers are Doing Wrong in Mobile“. As someone who spends most of her time on her mobile device, I’ve noticed many of the issues it has brought up and completely agree with many of the suggestions made.

One thing to note is that most websites or apps that show ads have similar competitors; celebrity news, viral lists, games. It’s very easy for users to switch to another app that either does not have ads or has relevant ads. In a way there is high “buyer power” in the industry. This means that websites will need to minimize ads that repel customers.

I’m the type of person who can deal with ads, so long as they aren’t in the way of what I’m trying to do. Having too many ads on a site is a largely common problem. There are times when I simply give up trying to read content on a site simply because it’s near impossible to do so, which is likely not what the company wanted consumers like me to do. I understand the need for ads; after all revenue needs to come from somewhere. However, when they are irrelevant and obtrusive to what I am trying to do, it’s frustrating. Get Busy Media nails some of the main problems with these ads and makes great suggestions.

I’ll admit, I don’t shop at Whole Foods often. I generally don’t care where my food comes from or how it was made, unless of course there is controversy over the topic all over media. To me, Whole Foods is pretty much just like any other grocery store. That means Wal-Mart, Safeway, Save-on-foods, among others. Granted, the nearest Whole Foods is a 45 minute drive away which is also fairly off-putting.

While I don’t shop at Whole Foods, however, that doesn’t mean that I don’t care about their food or values. In fact, I admire them for their aim at responsibly produced or grown products. Co-CEO, John Mackey’s catchphrase is along the lines of “it’s OK to make money and be thoughtful at the same time.” Their new marketing campaign certainly attempts to emphasize the company’s shared values.

An article in USA Today, describes Whole Foods’ new national advertising campaign. With the slogan “Values matter,” the new ad further pushes the message, saying, “We want people, and animals, and the places our food comes from to be treated fairly.” The reason for the new ad is the increasing competition from other grocery stores and decreased growth. In this market of increased rivalry, Whole Foods has perhaps done well in their emphasizing that they are different than the others. Sure, Wal-Mart sells everything for cheap and there are more Safeway locations than Whole Foods locations (here, anyways), but in a culture that is continuously growing towards food consciousness, this ad campaign emphasizing their point of difference may have been a very good move from Whole Foods.

Recently, I was browsing through classmates’ blogs and I happened upon Jayden Shyu’s post, “Not Cool, Facebook“. Needless to say, I read it. I have already had many doubts about Facebook’s privacy. So much personal information is uploaded to Facebook. Users trust the company with their pictures, videos, interests, even money. Facebook has, in a way, become a monopoly of information. And how exactly do they turn this information into profit?

Poll done by the Guardian regarding Facebook

“Not Cool, Facebook” brings up a study done by Facebook in 2012 in which almost 700,000 users unknowingly participated. Facebook manipulated newsfeeds to see the effects of positive or negative posts on emotion. Jayden mentions how, while what Facebook did was legal, it was certainly not ethical. Facebook “technically” had the consent of the users, hidden in the terms of agreement as part of marketing research. However, it caused many of its customers to begin to distrust the company.

It’s amazing what a company can get away with when it is one of a kind. While there may be competitors out there such as Twitter and Snapchat, Facebook is still the easiest place to find information and friend someone one has just met. I, for one, have considered closing my Facebook account but have been unable to do so due to its necessity in much of my communication for both pleasure and business/school. Even with a large amount of distrust around it, Facebook somehow continues to thrive.

Image Source: Vancouver Sun

According to the Vancouver Sun, the Tsilhqot’in people have claimed the property of Taseko Mines Ltd for what they call a tribal park. This park will serve to protect the Tsilhqot’in “cultural, heritage, and ecological values“, covering about 3120 square km of land. Meanwhile, the First Nation’s plan has thrown a wrench in the proposal for New Prosperity mine at Fish Lake.

The New Prosperity mine was a $1.1 billion project, mining for copper and gold. While the land is legally the company’s, the Tsilhqot’in people, who have been opposed to the mine, have claimed it as their sovereign territory. There have been so many external forces against the New Prosperity project since its proposal. Stakeholders, such as the government and the Tsilhqot’in people have been worried about the project’s environmental consequences. In fact, though it was approved by the provincial government, it was rejected twice by the federal government.

Taseko Mines Ltd.’s original plan would have also caused the loss of Fish Lake, which the Tsilhqot’in people value. Not only that, but though the project would have likely earned Taseko Mines Ltd. a large amount of money, many societal and cultural trends are against large impactful destruction of the environment. Not only would they have angered the Tsilhqot’in people but they also would have angered many of the people who saw the case in the media. So far, though the Taseko Mines Ltd. was completely prepared, the harsh external factors involved around the New Prosperity Mine have shut it down; for the moment anyways.

Macy’s, an American retailer whose competition is clothing stores such as J.C. Penney and Kohl’s has invested hundreds of millions of dollars into new technology; namely e-commerce. According to consulting firm Interbrand, Macy’s online makes up 10% of Macy’s total sales. One would say that Macy’s is ahead of its competitors in establishing itself online where many people now do a good amount of their shopping.

While Macy’s may sell similar products to its competitors and other clothing retailers, its online presence has created uniqueness to the brand; a point of difference, giving them competitive advantage over retailers such as J.C. Penney.

New technology not only sets Macy’s apart but also makes it easier for Macy’s to track customer’s wants and “maintain accurate inventory”. They have developed Radio Frequency Identification technology allowing them to track the exact locations of different items anywhere in the supply chain or in-store, further improving their e-commerce orders or in-store pickup. This makes inventory easier to control and keep track of.

Macy’s continues to develop , creating Image Search for easier item searching, “smart fitting rooms”, allowing customers to see what is in-stock in their particular store, next-day delivery, and personalized ads. Setting itself apart from its competitors by keeping up with new technological trends is likely to lead to Macy’s future success.

Source: http://fortune.com/2014/09/24/macys-tech/

Walmart, the well known supermarket, has a very successful cost-leadership strategy. They have a stunning reputation of selling an extremely wide variety of products at exceedingly cheap prices. While Walmart sells similar products as many stores like Target or the Real Canadian Superstore, such as food and clothing, Walmart’s key point of difference has been their cheap prices.

Recently, however, Walmart has announced that they will be entering into the banking industry. Now, that will certainly be a large point of difference. According to Fortune, Walmart tried to become a deposit-taking bank in the past but gave up in 2007 after an industry uproar. This time, however, they’re still trying to maintain their low cost system.

Image Source: businesswire.com

Walmart, partnered with Green Dot, a corporation known for prepaid credit cards, is trying to reach a new brand of customers; households who do not usually use a bank. Due to the recession in the US, many people(particularly those who have weak credit) do not have access to banks as a result of tighter standards. GoBank, Walmart’s new checking services will provide access to “almost anyone over the age of 18 who passes an identification check” for a small fee.

“Walmart customers want easier ways to manage their everyday finances” claims Daniel Eckert, senior vice president of services. With an already launched low-fee money transfer service and pre-paid cards made possible by American Express, Walmart is on its way to branching out of the retail industry, reaching a whole new range of possible customers.

It’s a well-known fact around the world right now, that Apple has released the iPhone 6 and 6 plus. After all, it was officially announced over a week ago. First weekend sales have already topped the iPhone 5s/5c sales with over 10 million iPhone 6’s sold within the first few days of release. Line-ups of people who waited hours for the iPhone 6/6 plus were turned away empty handed.

Image Source: Bloomberg Tech News

Meanwhile, the Chinese were exempt from the long-awaited release date as Apple has yet to get the license to sell them in China(despite the fact that over 200,000 people in Chinese factories worked on the iPhone). This has prompted a flood of iPhones on the so-called gray market. The new iPhone 6/6 plus, often shown as a status symbol, has turned into a large opportunity for individual sellers, who lined up that opening day in various countries around the world. While Apple has been unable to access China, resellers have been selling the iPhones at a 200-300% markup.

This is a display of the effects of government intervention on a market. While Apple loses some of the sales and profit they could have gained from access to China, the demand for iPhones(particularly the gold iPhone 6 plus) remains high. With the supply of iPhones so low, the price, naturally rises forcing Chinese consumers to pay a larger sum for an iPhone that could have been easily bought cheaper at an Apple store. While Apple has had impeccable sales numbers and still gains profit from the consumers planning to sell their iPhones, they lack what they could have gained from their market in China.