Monthly Archives: September 2014

Ever heard of the company Alibaba? Well… Alibaba is China’s biggest e-commerce company and after its initial public offering (IPO) in the U.S., it may even be the world’s biggest e-commerce company. The IPO was a huge success with the company raising an initial $21.8 billion. When trading ended Sept. 19, the company had a market value of $231 billion which is shockingly more than eBay and Amazon.com combined!

Nowadays, companies are turning to the internet as their main channel to reach customers. It is one of the most efficient and effective ways to reach customers and this is evident in the amount of users on Alibaba’s three sites: Taobao, Tmall, and Alibaba.com; Alibaba dominates 80% of China’s online shopping market. It has already gained a massive share of the market in China so it is now moving to the U.S. The company is making a very smart move by expanding outside it’s borders into other countries because, as it is an e-commerce company, there is not much risk involved in the move but a lot of potential rewards. One of it’s main obstacles will be competing with the established, North American big names Amazon.com and eBay. Differentiating from these websites and creating its own brand power will be difficult in the U.S. market however it has had a very successful launch into the American market thus far so it seems achievable. While their future in the U.S. market has started off right, it will be interesting to see how North American online shoppers react to this introduction of this China-based site.

Sources:

http://projects.wsj.com/alibaba/

http://www.usatoday.com/story/tech/2014/09/18/alibaba-ipo-china-internet-baidu-tencent-global-internet/15835657/

Along with the anticipation for the release of the iPhone 6 on Friday comes the hype for Apple’s Healthkit.  Apple has created a new tool for developers called Healthkit which enables fitness  and health apps to work together to create a revolutionary health care system within the 5.44 x 2.64 x 0.27 inches of your new iPhone. This new development “might be the beginning of a health revolution.” Or at least that’s how Apple put it on their website.  Apple is not only releasing its newest version of the iPhone but it is making its move into an entirely new market: mobile healthcare.

This article talks about how Apple’s Healthkit could change the current process of health care data collection and transfer and how it could revolutionary for hospitals  and patients. While this article focuses on lessening the “out of control” hype for Apple Healthkit, I think that the hype for this new development is justifiable. I believe that the company will be able to succeed in this industry because they have a solid foundation to build upon. The company’s brand power in itself could drive their success. It is evident in the 4 million pre-orders for the iPhone 6 and the number of people who will wait hours in line on Friday to get the latest iPhone. People love Apple. Any new initiative the company takes already has the support of millions of Apple users around the globe even before it is officially launched. Obviously there are many factors that will contribute to the company’s performance in the mobile healthcare industry; however, in the early stages of the “Healthkit revolution”, the platform’s potential seems to be promising.

Image: http://cdn1.appleinsider.com/HealthKit.WWDC2014.jpg

The practice of corporate ethics and social responsibility has become increasingly important among companies worldwide. Ethics in business has always been around, however public scrutiny of a company’s ethical practices has become more prominent and seen constantly in daily news. While companies may gain recognition for certain shows of ethical behaviour, the extent that companies practice corporate ethics is not always consistent.

Gap took initiative when racist graffiti was put on one of their signs in New York by responding with an ad campaign featuring a Sikh model wearing a turban. This ad, different from the usual “all-American” ads, captured the attention of socially conscious consumers worldwide. However, after the collapse of a factory in Rana Plaza, Gap refused to sign an accord protecting Bangladesh workers which 100 other international retailers such as H&M had already signed. This disconnect between their ad campaign and their refusal to sign an accord protecting basic human rights brings into question the true ideals and objectives of Gap. It would seem that their ad campaign was solely a marketing ploy rather than a true showing of corporate social responsibility. It brings into question the possibility that acts such as Gap’s ad campaign are merely ways of increasing profits as stated by Friedman’s “stockholder theory.”

Sources:

http://www.usnews.com/opinion/articles/2013/12/11/gap-can-build-on-its-sikh-ad-by-protecting-bangladeshi-garment-workers

http://www.scu.edu/ethics/practicing/focusareas/business/conference/presentations/business-ethics-history.html

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