Monthly Archives: September 2014

Recently, with the release of the new iPhone 6, hoards of customers have been lining up at retail stores. Mainland China, however, is not so lucky as the iPhone 6 will not be on sale until around October 1. Recently in Mainland China, however, there has been a massive influx of highly priced iPhone 6’s into the Chinese black market. Unfortunately, iPhone sales in Mainland China are greatly diminishing and even the black markets have suffered losses. In previous years, the iPhone had been synonymous with luxury phones in China, yet the iPhone 6 is already facing sales issues due to the popularity of newer, more affordable brands. The article outlines new phone brands, such as Xiaomi, that have been emerging and taking over the Chinese market. Xiaomi phones have seen a booming growth in recent years. They are slim and have very excellent functions not too different from the iPhone. Xiaomi phones are, however, a lot cheaper than the iPhone. The market for Xiaomi phones has risen to the top due to their affordability. Furthermore, the iPhone 6 has yet to introduce any new striking aspects support its high price, while Xiaomi was able to use the strategy of low cost to pull ahead. As the article outlines, Apple seems to have a “glum” ride with the sales of the iPhone 6 in Mainland China as customers are now looking towards newer brands that are dominating the cellular market in Mainland China. Apple no longer holds a firm brand leadership and the decline in demand can already be seen with the failures even in black market sales. When the iPhone 6 is officially released in Mainland China, Apple may be in for another surprise.

Amazon has recently announced the release of their newest product, the Kindle Fire HDX 8.9 tablet, with improvements in terms of functions and capabilities. The new tablet is, however, blatantly similar to the Microsoft Surface tablets which were, as the article says, generally unsuccessful in the market. Even though Amazon has seen the issues within Microsoft, Amazon has chosen to step away from only manufacturing standard Kindle e-Readers and instead become a competitor in this emerging market.

Referring to the 9 building blocks of a business model, Amazon seems to be trying to take steps forward. Amazon is trying to not only appeal to the customer segment seeking readers, but also appeal to the customer segments seeking laptop alternatives. Amazon has seen the success with the iPad and seeks to evolve their technology to appeal to customers seeking more powerful tablets with a wider range of functions, albeit at a lower price than the iPad. One edge that Amazon currently holds with the Kindle Fire is the excellent warranty deal. The article states that Amazon will offer full repairs for the tablet for up to two years, adding additional safety onto the already sturdy “shockproof rubber case that comes in the package.” Amazon is taking a leap of faith into an emerging market, however, Amazon’s move is highly risky. Well established competitors in this sector easily outshine Amazon, however, if Amazon is able to better price their products and provide benefits like their excellent protection warranty, Amazon’s new Kindle Fire HDX 8.9 may stand a chance.

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This article discusses the “uphill battle” that, namely, Belu and One Water are facing in fulfilling their initiatives to provide clean water. The companies’ largest obstacle is that their small markets are incapable of being competitive, let alone make a change. To compare, the article emphasizes two other major players, Nestle and Danone. Nestle and Danone, unlike Belu and One Water, are not as concerned about ethics as profit and overshadow Belu and One Water. The problem these companies face is not pricing but branding, as customers have the tendency to purchase more reputable brands, albeit a higher price, due to their trust in the quality of the goods. This branding barrier is something Belu and One Water must defeat if they hope to expand their business. I must agree with the article in saying that they are taking an ethical approach to business, however, with their limited market, it is disappointing to say that these goals will not be able to catch a buyer’s attention as they are easily out shined by larger competitors. While their ethical goals are respectable, and in my opinion companies should strive to better society while keeping profits in mind, it is inevitable that buyers are neglectful of ethics in business and focus more on quality. For the time being, these simply companies have to find a way to exit the shadows of the giant market players.