Category Archives: Corporations

21Nov / 2011

Movember fueling a “Social Enterprise”?

I’ve been noticing a spreading influx of people wearing TOMS shoes lately… Even the UBC Bookstore sells them!

After Googling the company, I came across their blog entry on “Movember”; a movement where males around the world grow moustaches in November to raise funds and awareness for men’s health.

The entry highlighted the movement’s importance to some of the TOMS staff members, but most importantly, it also showcased the company’s collaboration with the creators of Movember. The result: limited edition TOMS shoes, embellished with a little moustache on the side. This not only allows TOMS to capitalize on the popularity of Movember, but it further strengthens the company’s sense of social entrepreneurship (with “One for One”).

I’ve tried on a pair of TOMS, and with their classic line priced at around $65, I couldn’t understand why people were paying so much for such a fragile-feeling shoe. However, the company’s strong marketing of their One for One movement, along with their vast selection of styles has clearly struck mass-market appeal. Despite not being a true social enterprise, it seems that the lack of public understanding of the term, has truly worked in TOMS favour.

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09Nov / 2011

Apple takes the cake… again.

Although clichéd, when I think of entrepreneurial, the first company that comes to mind is definitely Apple Inc. With their vast array of innovative products that have consumers lining up over night during a product launch, it’s clear that Apple has been very successful.

Initially selling only Macintosh computers, Apple has grown into a company that houses iPods, iPod Touches, iPhones, and iPads. With the launch of each new product, Apple has proven that innovation is the key to their company’s continued success. Furthermore, their continued innovation has resulted in the creation of new markets as well as patented production methods.

Compared to a small business-owner, Apple strongly displays the criteria of an entrepreneur given by QuickMBA:

  1. Amount of wealth creation
  2. Speed of wealth creation
  3. Risk
  4. Innovation

There’s no doubt that Apple excels in the innovation category, but the company also began with a high level of risk involved. As one can’t predict how consumer’s tastes change, new products always run the risk of not being demanded. However, despite the expenses incurred through the first generations of each of Apple’s products, the company has exceedingly become successful in generating millions of dollars in profit in short amounts of time.

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02Nov / 2011

Happy Employees = Profit = Happy CEO

Recalling yesterday’s class, Zappos.com was the case study used to understand the importance of having a strong organizational culture. Due to the company’s consistently positive employee feedback, Fortune has named Zappos one of the best companies to work for, since 2009.

I define organizational culture as a set of values adopted by an organization, which are consistently shared by its members (or employees). Thus, it’s vital that employees are in agreement with a company’s mission statement. If not, employees’ incentives will lie outside of the company’s motivations, thus leading to inefficiency.

As Zappos was placed #6 on the list this year, I began researching the company that topped the list for two years in a row; SAS. Even today, “SAS continues its 35-year history of growth and profitability.”

Recently, a Stanford professor estimated SAS (Statistical Analysis Software) to be saving “$60 to $80 million a year…in not having to replace people.” Furthermore, the company has stayed private, despite holding a, “35-year track record of revenue growth.” By providing a “900-acre campus” housing a health center, different recreational fields, and even a salon, it’s no wonder that SAS has been able to warrant an employee turnover rate of less than 4%.

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27Oct / 2011

Sony vs. Apple?

With Apple’s continued success with their iPhone, Sony Corp. has finally decided to bring their longtime smartphone plans to fruition. Unbeknownst to many consumers, Sony Corp. is actually separate from its joint phone venture, Sony Ericsson. The merger will cost US 1.5 billion, “as [Sony] seeks to exploit its music and video to help catch smartphone leaders such as Apple Inc.” Sony believes that linking its resources will reduce costs and allow the company to “more rapidly and more widely offer consumers smartphones, laptops, tablets and televisions.”

Since I didn’t know that Sony didn’t control their phone lines, I’m hesitant to see the new optimism resulting from this merger. Unless Sony places more focus on campaigning the introduction of this ‘rebirth’ (possibly with new products), I doubt that consumers’ demand would necessarily change. However, I know firsthand that they make quality goods, and this merger will improve the efficiency of their supply chain.

Despite Apple’s strong brand association with music, Sony has even deeper musical roots with their music label housing artists like Beyonce. Finally, Sony was synonymous with music during the time of Discmans and walkmans, so what’s stopping them from achieving that today.

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25Sep / 2011

Re: iPod

I recently read Annie Luk’s blog post on iPods, and I completely agree with her. If Apple decides to get rid of the iPod, their house of brands will significantly diminish in brand power. As she mentioned, iPhones are often seen as unnecessary (and too similar to the iTouch), while the iPad doesn’t seem convenient or practical to me. If there were no more iPods, I certainly wouldn’t be able to see myself purchasing a large touch-screen pad to fulfill my occasional need of portable music.

With Apple’s brand roots built so strongly with iPods, why should they get rid of the most portable products in their arsenal? Despite iPod sales contributing 42% less to Apple’s total revenue now, than before the launch of iTouch and iPhones , it’s still clear that many consumers wouldn’t think twice when deciding between an iPod and a Zune. At the end of the day, it often isn’t about the functionality of the product, but rather the image behind the brand itself.

Check out the article behind her post here: Should Apple kill the iPod?

Photo: Courtesy of Apple Inc  

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25Sep / 2011

More Competition for Wal-Mart?

Photo: Courtesy of CBC and Damian Dovarganes/Associated Press

As a frequent customer of supermarkets (such as Superstore, T&T, and Wal-Mart), I was intrigued to hear about Target’s grocery deal with Sobeys Inc.. In my mind, Target acts as an “American” version of Zellers; the logo and labeling within the two stores are both red. Furthermore, speaking from personal experience, even the store layout and products sold (e.g. in store clothing brands) look strikingly similar.

Thus, I exercise caution in thinking that Canadian Target stores (opening in early 2013) will be able to compete with industry giants like Wal-Mart. However, despite the risk, Target has built up an easily identifiable brand throughout its history.

Regarding its deal with Sobeys Inc., Target will surely benefit from working with such an established supplier. Since opening their first store in 1947, Sobeys Inc. is “one of only two national grocery retailers in Canada”.

After weighing the pros and cons, I feel that Target has a significantly larger chance at success, compared to Zellers’ venture into groceries (as discussed in an earlier Comm 101 class). They have all of the tools necessary to succeed, but only time will tell what the outcome will be.

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