Day: November 16, 2013

I found Matthew Anderson’s blog post on Tesla quite interesting because he pointed out a problem I was quite interested in. One believes that once a car company, that too a relatively new one like Tesla receives news of their cars catching on fire it is the end of the line for them. But as Matthew Pointed out this should be a way for the company to learn about what it is doing wrong and improve on its flaws.

I agree with Matthew, In the belief that a company like Tesla will keep on growing as electric cars are the future and Tesla is one of the leading companies in perfecting the technology of fully electric super cars. Even though the shares for Tesla did drop by $50 due to these reports of fire I believe that this is only temporarily as Tesla would have a stronger product and thus would lead to an increase in sales. Also upon reading the feed back from customers whoms cars had caught fire, most said that they would buy another Tesla.

Blog commented on :-

https://blogs.ubc.ca/matthewanderson/2013/11/12/teslas-too-hot/

Sources cited :-

http://business.financialpost.com/2013/11/13/telsa-motors-inc-recall-decision-musk/

“$3 billion isn’t cool. You know what’s cool ? walking away from $3 billion”

Said Snapchat to Facebook upon declining a 3 billion dollar offer by Facebook for a buyout. Snapchat is a company that was started about 2 years ago and has an app that allows its users to send pictures or videos that can only be viewed for a limited period before they are erased. Snapchat’s value proposition, allows the users of the app to edit and share pictures and videos in a easy way. It is currently worth at $860 million, so another question that should be asked is ” Why Facebook wanted Snapchat soo badly ? “.

Facebook is a social networking website that reaches 1.2 billion people all around the world, while Snapchat is a 20 personal company which has no form of revenue. I believe the reason for Facebook’s offer to buyout Snapchat lies in Snapchat’s value proposition. In todays world we see that sharing Photos and Videos is what fuels the social networks as more and more people upload photos. Thus by acquiring Snapchat we see that Facebook is attempting to do the same as it did with Instagram in 2012, it is attempting to increase the user base  by making more outlets for them to upload, share and edit pictures.