Sydney Ren's Blog

This post is a response to Dylan’s post about the potential security concerns of UrtheCast.

UrtheCast, created by Sauder alumni Wade Larson and his brother, will be the first streaming HD video camera installed on the International Space Station (ISS); it is also a platform that allows users to playback the video. Larson has termed UrtheCast to be “like Google Earth, but better”. There is also a function that allows users to also see in realtime social media interactions from sites like Facebook and Twitter.

Dylan argues that this social media layer is an invasion of privacy, which I disagree with. The posts that UrtheCast shows are ones that social meda users have placed on a “public” setting. By having public settings, users already acknowledged that their posts can be seen by anyone with an internet connection. If one’s Twitter is private to followers or Facebook has higher security settings, that person’s posts will not show on the site in realtime.

I agree with Dylan that this social media layer will be off-putting to the general public. People with higher security settings will still feel unsafe about their information floating around the internet, and may dislike UrtheCast because of it. I sincerely hope they don’t, though, because UrtheCast is amazing and I can’t wait to see it take off.

This past weekend, I received a phone call from a cousin that lives in China. We ended up talking about her small business and online shopping. She revealed to me that eBay would be returning to China to sell designer goods. I guess eBay couldn’t resist the tempting Chinese market of 500+ million online users. A search on Google results in this article by the BBC, boasting a “40% […] increase of goods” purchased by the Chinese on eBay’s English site.

Despite the large potential, I believe there are problems that eBay faces in re-entering the Chinese market.

• Five years ago, when eBay faced competition by Alibaba Group Holding Ltd.’s Taobao.com, the company, which already had trouble gaining popularity in Asia, fled China – fast. The Chinese haven’t forgotten this massive failure.

• Other e-commerce giants, like Amazon.com Inc., had a difficult time penetrating the Chinese market, even with designer goods and a well-known brand. eBay will need some serious product differentiation from other online retailers if it wants to stay in the game. It doesn’t help that the new site’s name is ebay.xiu.com, forcing eBay to share the spotlight.

• If incumbent Chinese online retailers somehow manage to sell designer goods in the near future, eBay will lose majorly. The young, wealthy middle class people that shop online want designer goods, but they want them fast. Shipping will take at least 7 business days since the goods are sourced from the US. Most of my family members in China that shop online still prefer Chinese sites like Taobao.com.

Sauder alumni and Energy Aware CEO Janice Cheam’s recent presentation to our class gave me a lot to ponder about.

During the final Q&A portion of the talk, classmate David Kelly asked whether Energy Aware’s products could be bought directly by the consumer. Cheam responded that the company’s products are not sold directly and it has only recently started one e-commerce site that caters to San Diego, California. Since Energy Aware’s products require the locations to have prior infrastructure of smart metering, it is easier for them to provide their products to a larger audience through partnerships with energy management services and distributors.

In addition, Cheam mentioned after class during our quick conversation that the PowerTab is not patented because it costs serious cash (and cashflow is hard to maintain in entrepreneurial businesses) and the software for the product is constantly evolving, rendering a patent useless. These two choices reinforces the strategic concept that companies must choose what they don’t provide in order to establish a sustainable competitive advantage over competitors.

Also, while I don’t think of myself as an entrepreneurial thinker, Cheam’s talk prompted a fuller comprehension on how fundamental innovative thinking is to any specialization or industry. PowerTab was developed through a collaboration of engineering and business students, specializing in different fields; however, all shared the same passion for an innovative product. Innovative thinking, especially the collaborative type, is a skill that can take one far in the workplace.

This question was asked during class this week: should Greece exit the EU?

I say no. Greece shouldn’t exit simply because this action would worsen their current economical and financial problems. Greece’s debt does not simply disappear if it leaves the EU – and boiling tensions between Greeks and Germans show that is unlikely that countries like Germany and France will “absorb” Greece’s debt. In addition, if Greece exits, it will have to return to using its older currency, which most likely has lower value than the euro. So what should Greece do, given that it should stay in the EU?

The bailouts that the IMF and EU gave Greece have been put towards narrowly-passed austerity reforms, several of which are starting to see success. There are at least two areas where change has been too slow. The privatisation of state-owned enterprises, which hopes to attract foreign investment and replenish state funds, will be difficult to attain since few investors see Greece as a secure investment. The second area that needs major work is tax reform. Greece is infamous for tax evasion, among citizens and businesses alike. If Greece doesn’t restructure it’s tax systems, the inefficiencies will continue and Greece will continue to lose public revenue.

This summer, luxury brand Yves Saint Laurent announced that it would be switching out its classic logo in favor of a new, minimalistic “Saint Laurent Paris” logo. Fans of YSL complained that there was no need to change the logo, and that it lacked the original’s elegance and famous interlocking letters. As the date gets closer and closer, loyal fans of the old logo are spending furiously in hopes of snatching up the remaining  merchandise.

Brand renewal is a risky move for any company. It can have adverse affects on the brand positioning of the company if consumers don’t find the logo sexy or appealing. On brand renewal, Milton Pedraza of research and consulting firm the Luxury Institute says:

“If you run away from your classic product or reinterpret your classics […] too far away from the DNA of the brand, you will fail. Period.”

While I think that the new logo strayed too far from the original created by Cassandre, I don’t believe that YSL will “fail” like Pedraza warns. Top brands like YSL don’t change much in terms of brand positioning because they already has an established following. However, the demographics of its customers will likely expand to include younger consumers who are excited to be part of the “new” YSL Saint Laurent Paris (SLP?).

The one-for-one business model, touted as a successful means of engaging consumers in real change, is simple and direct: for every product purchased, a beneficial product or service is delivered to someone else in need. One of the most popular brands with this mission is TOMS Shoes. The shoes given to children prevent soil-transmitted diseases and give the children a chance to receive education. Ark Collective’s Get to Give offers backpacks for children in the States; Baby Teresa donates baby rompers.

I agree with this well-researched post by A Personal Diaspora that the traditional one-for-one model is just a band aid to serious underlying problems, and that it undermines local markets. Here are three companies that take the traditional one-for-one model and improve upon it:

• Two Degrees provides locally-produced meals for children through non-profit partners like IMA World Health and Akshaya Patra.

• FIGS’s Thread for Threads initiative partners with local tailors in Kenya, Tanzania, and Nepal to make school uniforms, providing jobs and education.

• Warby Parker provides funding to VisionSpring, a non-profit partner that trains local entrepreneurs to conduct eye exams, design and sell affordable glasses to their own communities.

Referring to this article in The Globe and Mail, this post is a response to Vanessa’s post about the potential success and safety of Facebook’s new gift service.

This new online gift service is Facebook’s attempt at entering the e-commerce market and answering the skeptics that do not believe in the hype of Facebook advertising. It’s clear that Facebook, with it’s one-billion-and-growing users and large user information database, has the ability to turn a profit for companies looking to sell their products using this service. I disagree that Facebook could compete with sites like Amazon, Ebay, and even Etsy, who are seasoned e-commerce competitors that have a positive reputation for being reliable and safe.

The success of this new project is inevitably dependant on the safety of user’s private information on addresses, credit cards and the like. In the past, Facebook had several problems with security. There was a time when users’ mobile phone numbers were displayed publicly on their profiles after connecting to the site/application via their phone. Recently, Facebook also changed users’ displayed emails to ones with Facebook domains. These incidents make consumers wary of Facebook’s security, which may affect the future success of its service. Unless Facebook keeps user information private and utilizes a consumer-trusted method of payment like PayPal, the success of its gift service will be limited.

The story of Avison Young illustrates how crucial a strong business strategy is in a rising company. In less than five years, the company revamped its vision to expand beyond Canada into the States and is already competing alongside international real estate giants.

In last week’s class about business plans and strategies, the concept of sustainable competitive advantage was introduced. Basically, it is an advantage that the company gains when it runs a combination of activities differently relative to competitors. Avison has a sustainable competitive advantage because…

• It is independently owned, not publicly traded or owned by a strong shareholders
• It focuses on the longterm (clients’ needs) over the short term (shareholders’ interest in profit)
• It carefully targets its markets, choosing cities in the US by analyzing their recovery from the recession
• As a new player, the company can enter markets cheaply

Overall, Avison has a clear mission, vision, and objectives with short term implementations that lead to long term approaches at strategy. In addition, it has BGHAGs to compete with large firms like CBRE and Colliers International with a relatively small brand image.

As an interesting thought, would Avison have had as much success if a Canadian CEO had taken over instead of an American one? Is Avison’s combination of Canadian roots with an American CEO confusing to consumers?

The lineup for the iPhone 5 in Munich via CNBC

It’s been a few weeks since the launch of Apple Inc.’s iPhone 5, and the list of manufacturing defects and software bugs is already quite long. Personally, I know people on their second or third iPhone 5 who complain about the weak battery life, scratches in the aluminum, etc. When I ask what they like the most about it, there are no real answers; it somehow “feels” superior. It may be a stretch to call this phenomenon a cult, but this video from Jimmy Kimmel may make you think otherwise.

At the launch of the iPhone 5, the image of the device spinning in a lazy circle alone had the audience clapping and cheering. When it comes to brand positioning in consumers’ minds, Apple has got it down.

A video during the iPhone 5 launch praised it’s new 4G LTE feature and the sleek manufacturing process. However, 4G LTE has been available on other phone models and manufacturing processes are easily mimicked. The key is that consumers believe that Apple is doing it first, or in an improved way. Because of this, Apple has maintained its top position of multiple ladders.

Knock-off Coach bags, Nokia cell phones, and even Calvin Klein underwear are all products sold by unauthorized dealers. As journalist Robert Neuwirth points out, many informal economies function openly without paying taxes or formerly registering with the government. Neuwirth’s 15 minute interview on NPR summarizes the informal economy’s role in society:

Reasonably, businesses and governments are concerned by the lack of taxes and regulation associated with the informal economy. However, last November, the Nigerian government banned what they call “street trading” in Lagos, mainly to reduce crime, clean up the streets, and be more environmentally friendly. Is this the right reason to be restricting the informal economy?

The main ethical issue lies in the majority of the population that depends on the informal economy as their only source of income. For average Nigerians, jobs in the formal economy are inaccessible due to societal barriers. In addition, the Nigerian government doesn’t use its vast oil revenues to provide basic services for its people; almost all Nigerians in Lagos depend on the informal economy for basic services like clean drinking water.

Would it be ethical to regulate or restrict an informal sector that is vital to the well-being of citizens? Can government restrict the informal economy if it plans to implement replacement programs?