11/9/14

My comment on Chinese coffee attracts Swiss trader interest

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China should give a warm welcome to more companies like Volcafe to invest in Yunnan and other parts of the countries. Although some parts of the country have already become very modernized, the rural area on border is still undeveloped, valuable resources have not been used effectively.

Food companies like Volcafe can provide financial aid and technology support to farmers, as a result, the companies can receive better quality raw materials at a more acceptable and competitive price, farmers’ income will greatly rise , they will be able to invest more to enhance their production and therefore get rid of poverty. This is a great example of CSR of business.

In addition, my analysis shows that the next great opportunity for business in China is the farmland. After the 20 years’ rapid development, China has built a comprehensive manufacturing industry, people’s income has greatly increased. Manufacturing will not be as profitable as before in China. While on the other hand, people’s demand for better life standard, to be more specific, their demand for high quality food will rise, therefore firms should invest their money into the farmland, work closely with farmers. Together they can create a profitable new agriculture.

Source: http://www.ft.com/intl/cms/s/0/90156bac-5e8f-11e4-b81d-00144feabdc0.html#axzz3Id7Gr1TK

11/9/14

My comment on Microsoft Is Giving Away Its Office 365 Mobile Apps

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Microsoft has always been a monopoly in office software market. Although google and apple both have similar products, they still can’t provide something that can replace Microsoft Office, some of Office’s core function like solver still remain exclusive. What’s more, Office still has the control of general documents formats, such as .doc and .ppt.

To me, I am one of the subscription customers of Office 365, Microsoft’s offer infuriates us. Because we feel that part of our subscription fee is paid for free products and services. But on the other hand, to those without full subscription, this is quite a sweet offer. By providing free Office mobile apps, Microsoft can attract new consumers and implement price discrimination among its customer segment, divide customers into different groups, each charged with the highest acceptable price to maximize profit.

In addition, I doubt the effectiveness of this predatory monopolistic strategy. Because it is so inconvenient to use office app on small-sized devices such as smartphones and small tablets. My analysis shows that a discount on Surface would have better outcome because once consumers purchase a Microsoft hardware, they will automatically stick to Microsoft software. Microsoft should create a whole ecosystem including hardware of all size, software with all purpose and online cloud services, build great customer loyalty to maintain its monopolistic power in IT market.

Source: http://blogs.wsj.com/digits/2014/11/06/microsoft-gives-away-office-365-mobile-apps-in-a-bid-for-more-users/?KEYWORDS=Shira+Ovide

11/9/14

My comment on Wing Hong (Darren) Tong’s Blog Hangzhou: ‘The Alibaba hub that minted thousands of Internet millionaires’

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I totally agree with Darren’s opinion. As a Chinese student, I always pay great attention to Jack Ma’s company, Alibaba. Not only because I spend hundreds of dollars shopping on Taobao.com, also because Jack himself is a great model for a commerce student to learn from.

This smart businessman, the richest person in China, Jack Ma, failed to pass Gaokao, the Chinese college entrance examination when he graduated from high school. His first job was an English teacher, his first business was a small translation agency. However he sensitively smelled the trend of IT revolution and grabbed this chance, founded his great Alibaba empire.

My analysis shows that Ma’s success comes from these elements:

1. Sensitive to chance and trend. This is the most important skill that an entrepreneur should have. It helps you grab opportunity and avoid threats. It’s pretty similar to SWOT analysis skill.

2. Strong leadership. Ma is good at building and creating organizational culture, like Darren mentioned, in Ali, people have “the sense of purpose and a belief that anything is possible”.

3. Global view. Ma always try to push his business global and keeps learning from foreign rivals.

4. Braveness ,hardworking and innovation spirit. In Chinese culture, people are conservative. Therefore being brave and being the pioneer means a lot to a businessman. Of course all of above must be built on the foundation of hard work.

Source: https://blogs.ubc.ca/winghongtong/2014/09/24/hangzhou-the-alibaba-hub-that-minted-thousands-of-internet-millionaires/

11/9/14

My comment on Tim Du’s blog ‘Apple Watch vs. Swiss Watch’

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The last sentence of Tim’s post clarifies his opinion, ‘Swiss watch is indeed a classic watch brand, but nowadays, it is practical utility that counts.’ I partly agree with his idea. Admittedly, apple watch has more utilities than classical Swiss Watches,  it can function as a mini smartphone on your wrist while Swiss Watches only keep time. However, my analysis shows that swiss watch will never be replaced, for the reason that swiss watches are greatly differentiated from other rival products, including those Japanese watches that has almost the same appearance with them. Swiss watches not only represents the owners’ status, it also indicates the owners’ attitudes. By wearing Swiss watches, people try to show their respect to traditional hand-make production. On the contrary, apple watch represents geek spirit of enthusiasm to new technology.

According to apple’s keynote, the price of apple watch starts at $349 (Apple, 2014), which is way cheaper than swiss watches that cost thousands dollars, such a gap between price clearly place apple watch and swiss watches at two different customer segments, therefore I hold the idea that apple watch will bring very small affect on the sale of traditional swiss watches.

Source: https://blogs.ubc.ca/timdu/2014/09/28/apple-watch-vs-swiss-watch/

Bibliography

Apple Inc. September 2014 Special Event 09 09 2014. 09 11 2014

http://www.apple.com/live/2014-sept-event/

11/9/14

My comment on Twitter is Paying Executives Not to Flee the Struggling Company (external blog)

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My comment on Twitter is Paying Executives Not to Flee the Struggling Company (external blog)

According to the author Kevin Montgomery, Twitter is trying to stop managers from leaving the company by paying them money. 

However, the money paid only plays the role of Aspirin, but not a surgery. The defections can be prevented in short run, but the extra cost will probably leads to a serious long-run crisis.

Because the real problem is, people are losing confidence in their CEO, Costolo. My analysis shows that Costolo’s solution will make the problem worse, because people is going to have even less confidence in him. And this unequal treatment will infuriate other managers, make even more people lose their loyalty to Twitter.

Twitter needs a positive organizational culture to help it get through the hard time. The money paid to leaving managers should be spend on better staff welfare, financial encouragement to new ideas and a better leadership.  Twitter’s owners should also consider to hire a new CEO who can gather people by using his own personal charm, not shareholders’ money.

Source: http://valleywag.gawker.com/twitter-is-paying-executives-not-to-flee-the-struggling-1656117135/+aleksanderchan