This blog is based on Shan Jiang’s blog called: “Walmart’s Making Pick-up Convenient”.

In Shan Jiang’s blog, she mentioned that how Walmart Canada improve its picking-up service. She also discussed the benefits that Walmart Canada gains from the picking-up service. At last, she said that the remote selling and buying are becoming world trends today, and many online sellers should hold the opportunity by providing good delivery service like Walmart Canada does.

In recent years, I saw the expansion of e-commerce and the good shopping services that e-commerce provides. People are attracted by the convenience and cheap price of online shopping. However, the e-commerce has some negative effects on the traditional market. The small retailers like grocery stores face huge competitions and may be forced to leave the market, because more people use online shopping. Moreover, Since customers are unable to see the goods before making purchases, there is an incentive for e-commerce to sell fake products on websites.

In conclusion, from the Walmart’s picking-up service, I see the popularity of online shopping and the impact of the online shopping to consumers and the market.

References:

http://www.123helpme.com/view.asp?id=46081

https://www.quora.com/Is-online-retail-destroying-a-way-of-life-and-taking-away-a-lot-of-jobs-in-turn-harming-Indias-econom/

Image sources:

http://supermarketnews.com/retail-financial/walmart-delighted-grocery-pickup-site-test-continues

This blog is based on Angela Chen’s blog named:” Explore the Marketing Strategy of Fast Food Restaurants.”

In Angela’s blog, Angela lists several marketing strategies that fast food restaurants apply, and she explains why these marketing strategies are useful. Based on her thoughts, I want to explore how these western fast food restaurants succeed in China.

First, China was a new market and had good economic policy when lots of western fast food restaurants decided to start their business in China. Deng Xiaoping, the second president in China, carried out economic reforms which allow the foreign business and capital to enter the Chinese market. At that time, the Chinese market lacked the new types of business such as fast food chain restaurants. Thus, in the market that lack of competitors, the western fast food chain restaurants such as KFC and McDonald’s can easily gain market shares.

KFC’s breakfast in China

Second, many western fast food chains change their menu in order to cater the taste of Chinese people. Western fast food chains know the reason of previous success in China is that they entered the market in an appropriate time. In order to make the western fast food chains more successful in long term, western fast food companies should improve their products to attract Chinese people. For example, the KFC has many new dishes, such as porridge and fried bread stick which are Chinese traditional dishes. By providing Chinese style food, the KFC appeals to more customers with different ages in China.

KFC’s birthday party

Third, the western fast food chains pay lots of attention on China’s youth since the youth are abler to accept the new stuffs. The fast food chains tend to launch new products and services to attract the youth in China. For example, McDonald’s provides children with the ‘Happy Meals’ which including a combo and a little toy. KFC holds and manages the children’s birthday party in China. All of these methods draw children to consume.

References:

http://foodtank.com/news/2013/08/western-fast-food-chains-flourish-in-china-rates-of-obesity-and-diabetes-sk

http://studyinchina.universiablogs.net/2013/11/25/western-fast-food-chains-in-china/

http://archive.armstrong.edu/Initiatives/history_journal/history_journal_west_meets_east_kfc_and_its_success_in_china

Image sources:

http://everything-pr.com/treasury-wine-estates-pr/52517/

http://www.cookingmomster.com/?p=3311

This blog is based on the reading materials from class 20 “What is Social Entrepreneurs?”, “Toms Shoes: A doomed vanity project!” and “The broken buy one give one model”.

After reading these three articles, I am opposed to the ‘one for one’ business model because this business model is not profitable in long term and may disrupt the market.

First, ‘one for one’ business model cannot let companies make more profit in the long term. Since companies have to give away free goods when every customer makes a purchase, companies raise the cost of each product sold. Thus, the profit of each product that companies sold decreases. Moreover, companies can increase the number of sales by showing customers that companies help the poor. However, in long term, customers consider more about the quality, design and utility of a product when they decide whether to buy it or not. In this situation, the ‘one for one ‘business model seems costly and useless.

Toms’ ‘one for one’ logo

Second, giving away free goods affects the market of the place which accesses these free goods. Many local merchants are forced to exit the market since people can get the free goods and don’t need to buy goods.  For example, in the case of Toms Shoes, Toms Shoes does help poor people in material assistance. However, giving away free shoes cannot solve the poverty fundamentally. Instead, Toms Shoes hurts the local economy by pushing the local shoes manufacturing companies quit the market. The people who rely on shoes market to make living, such as raw material suppliers, workers and dealers, may face the risk of layoff.

In conclusion, one for one business model is not beneficial for both companies and poor people. In order to become a company that creates shared values, the company should do some real practices to boost the economy and to reduce poverty.

Image sources:

http://exygy.com/the-one-for-one-business-model-evolving-beyond-novelty/

This blog is based on the external blog named: “This Is What It Looks Like When a Company Sells $9.3 Billion in Merchandise in A Single Day.” by Hayley Peterson.

In Hayley Peterson’s blog, she mentions that Alibaba, the largest e-commerce company, offers a deep discount during the single’s day in China and thus makes a lot of deals. This blog inspires me to discuss how single’s day affect the market and the behavior of customers.

Single’s Day, which originated from Nanjing University in 1993, is a festival that single people celebrate themselves to be single. It holds in every November 11st, and it gradually becomes popular on internet and among young people in China. In that day, single people will have a “single dinner party” or buy gifts to each other.

Many sellers in shopping malls and on TV see that the Single’s Day is a great marketing opportunity for them to increase the number of deals and to make more profit. These sellers start to hold the shopping event which offer big discounts to customers. In recent years, with the development of e-commerce, the Single’s Day gradually becomes the online shopping day in China. Many online merchants begin to give discount to customers. For example, the biggest Chinese e-commerce company, Alibaba, gives customers big discount in Single’s Day in every year and receives increasing transaction values from 2009 to 2014. Moreover, the term ‘Double 11’, another way of saying Single’s Day, was trademarked by Alibaba as an advertising slogan to appeal to people.

The consumer behavior also changes as customers can access many products with cheaper price on Internet. Offering discount in Single’s Day attract people to buy products on internet and thus they will be familiar with the online shopping. After several practices, people prefer to buy products on internet for the reason that online shopping is cheaper and more convenient.

References:

http://www.idc.com/getdoc.jsp?containerId=prCN25240914

http://www.marketwatch.com/story/alibaba-group-to-showcase-market-innovation-and-leadership-at-2015-1111-global-shopping-festival-2015-11-05

http://www.ibtimes.com/how-chinas-singles-day-festival-became-worlds-largest-online-shopping-phenomenon-how-2177527

http://www.usatoday.com/story/money/business/2012/11/11/singles-day-chinas-online-shopping-holiday/1697299/

Image sources:

http://www.wsj.com/articles/alibaba-smashes-singles-day-sales-record-1447234536

Dell has decided to buy EMC, a data storage company, for $67-billion. This acquisition is the third largest in all sectors in this year.

Why is Dell willing to spend such huge amount of money on EMC? This deal can bring a lot of benefits to the Dell in the aspect of the external environment of business.

1. Industry Forces

Dell is able to provide customers with more products and service. Many of these products and services combine both functions of PC and data storage, and thus the Dell becomes more competitive in the market.

2. Key Trends

The transition of technology becomes faster today. A lot of PC companies such as HP start to focus on developing new tech to improve the function of the products.  In order to stand out in the market, it is very important for Dell to purchase EMC and develop a full set of products.

3. Market Force

By purchasing EMC, Dell is able to develop more products with various functions. These new products will be the new revenue streams since these products can appeal to customers. Moreover, products with more functions can satisfy the needs of customers. In addition, Dell can have more pricing power by creating a product that other competitors don’t have.

References:

http://www.reuters.com/article/2015/10/12/us-emc-us-m-a-dell-idUSKCN0S514820151012#gAzGjOCkiVUL0Whg.97

http://www.computerworld.com/article/2991387/cloud-computing/dell-agrees-to-acquire-emc-for-67b.html

http://www.computerworld.com/article/2991765/it-industry/what-the-dell-emc-merger-really-means.html

Image sources:

http://ioceane.com/67b-in-largest-deal-in-tech-history-dell-buys-emc/

Business ethics, as we all know, are moral principles that constrain the behavior of a business. From my perspective, the most basic business ethics are that a business should obey the law and doesn’t have any illegal operations.

Coca-Cola funded researches

In the newsCoca-Cola’s research funding criticized by obesity expert, obesity experts censure Coca-Cola for its flawed message. Basically, Coca-Cola has sponsored lots of scientific researches that suggest exercise, not diet, is the best way to fight obesity. Coke’s purpose in that kind of researches is obvious. It wants to pass a message to consumers that drinking less Coke will not help them to fight obesity. In this way, Coke can keep old consumers while attracting new consumer

It is evident that Coke alters results of some researches. Since scientists want to obtain funds from Coke, they have to give conclusions which will not conflict with Coke’s interest. In my opinion, Coke doesn’t break business ethics. By following business ethics, a business should use resources and gain profit efficiently as long as it stays in the rules, and Coke doesn’t break any regulations. Someone may argue that the flawed message from Coke is a fraud. Well, I admit some parts of the scientific results funded by Coke are incorrect, but it is hard for people to judge the validity of a research. The mistakes in scientific researches should be seen as experimental failure but nothing to do with business ethics.

Sources from:

http://www.cspinet.org/new/201508191.html

http://www.cbc.ca/news/health/coca-cola-s-research-funding-criticized-by-obesity-expert-1.3186279