The household brand, Hershey expects a challenging year in 2012. Despite its recent double-digit increase in net income in the third quarter, the renowned chocolate maker seems doubtful to maintain its current market position. One major reason is because prices of key ingredients have ballooned over the years. Due to spoilt crops in the US and floods in Thailand, sugar prices remain high, while the prices of cocoa have gone better for Hershey as the Ivory Coast resumed exports after the country’s political struggle.

As we have talked about supplier’s power in class, it seems relevant to discuss the fact that Hershey is having problems with supply. In this case, supplier’s power is high since Hershey is very dependent on exports of materials to produce chocolate. Considering its emphasis on chocolate products, Hershey has less options to get out of this problem. In other words, Hershey may as well focus on its marketing to gain more customers, as its production will definitely be hard to be beneficial in the upcoming years.

Hershey forecasts low growth in 2012 (2011), Hershey forecasts low growth in 2012, BBC (online). Available at: http://www.bbc.co.uk/news/business-15486018 (27/10/11)

I was walking around downtown last weekend when I noticed a line along the sideways. It was a pretty long line, and many people were anxiously waiting for something. I went straight to the front of the line and saw a minivan with its doors opened. A salesperson was giving out free beers and people seem to just keep coming.

The brand was Molson Canadian 67 Sublime. I thought they were expecting a prize or something from the free beers, but then I heard a woman said to a fellow pedestrian “you should line up, they are giving out free beers”. Only then it hits me. People didn’t care about the brand, it was the free beer they were after.

Recalling the discussions we had in class about tactics and brand marketing, the beer brand seem to have gained some attention from its potential consumers. Due to this tactic, many people automatically spreads the brand name as they carry the free beers around downtown. Many people became aware of the brand, and whether or not they will buy the beer in the future, the company has successfully introduce the brand to the target consumers, and even people outside their target market.

After Microsoft failed to take over Yahoo in 2008, the company is considering a new bid to gain control of the renowned Internet company. Yahoo is currently valued at US$18 billion, and alongside Microsoft, there are several other companies interested in the purchase. The decision on going after Yahoo again has not been finalized, yet if the company does decide to commence this purchase, it is most likely going to involve a partner company.

As mentioned in Troy’s blog, Microsoft has had interests to take over other companies like RIM (Research In Motion). The reason there is most likely to pursue a different market, to compete with rival, Apple Inc. which has dominated its market with is unique innovations. Microsoft may as well consider purchasing Yahoo for the same reason, or maybe to pursue the online market.

To commence this take over yet again should be a wise move if Microsoft has planned it thoroughly. The benefits of acquiring Yahoo may not be as apparent as the benefits of purchasing RIM, and this will definitely cost the company some fortune. Hence, to purchase such giant company would require thorough planning and strategies to assure profitability for the company.

Source:

Reuters, T. (2011), Microsoft considers new bid for Yahoo, National Post, a division of Postmedia Network Inc. (online). Available at: http://business.financialpost.com/2011/10/05/microsoft-considers-new-bid-for-yahoo/ (5/10/11)

People know that the online business has big potential, yet many may not know how big the potential is.

Topspin Media is a company that allows its clients to market directly to target consumers. In this case, the company has proven to be a significant help to the reunited band, the Pixies. The company was able to sell out 1200 tickets in one hour for the band’s recent show by e-mailing 8031 fans with Southern California ZIP codes. Established in 2007, Topspin Media offers bands the ability to sell recordings through customizable Web widgets, tickets and merchandise, as well as a detailed accounting system.

This example simply illustrates how we are now living in a digital world, dependent on the development of technology. The potential of an online market is unbounded, hence technology is and will be one of the most essential matter a company could consider. Relating to our recent topic in class (MIS and BTM), technology does contribute significantly to all companies, even though some may be more dependent to technology than others. Therefore, it is essential for companies to understand the potential of technology in influencing a business.

Source:

Sisario, B (2011), Online Tools Help Bands Do Business, The New York Times Company (online). Available at: http://www.nytimes.com/2011/10/03/business/media/high-tech-tools-help-bands-market-directly-to-fans.html?pagewanted=1&ref=technology (4/10/11)