Month: November 2010

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COMM 101 2010

Innovation in E-Commerce, the new era of the business world

Today, I finally found my definition of E-commerce from Groupon, it is “a combination of the new trends of business world – entrepreneurship and management information system.”

When we evaluate a successful entrepreneurship, we always talk about innovation. What exactly is innovation in the most competitive e-commerce world? In my opinion, Groupon demonstrates innovation in various ways.

To begin with, Groupon provides a platform for itself and small business to engage in marketing innovation. On this platform, customers can easily access special deals and promotions according to their geographic locations and interests via social network. Firms no longer need to use trial and error and waste precious time and money to determine their customers’ wants; instead, the customers display their preferences and interests and firms can cater directly to their target market’s tastes. As customer base grows, Groupon and firms that are involved can certainly take advantage of this and further expand their business.

In addition, Groupon’s system as a whole can be deemed as an innovative supply chain. The firms find out what consumers want, and can promote their business to a large and deep market at the same time. Thus, firms from different industries and areas will continuously come to Groupon for help with raising brand awareness for their business. Groupon’s selling point is its strong MIS, this has attracted firms from all different industries and these firms subsequently stimulate Groupon’s contious growth and advancement.

These reasons are exactly why even Google is willing to purchase the website for $6 billion!

Categories
COMM 101 2010

Entrepreneurship – the key to growth

If I was to rank the most entrepreneurial company in the world, I would have to say that it is the Japanese entertainment monopoly Nintendo Co.  From Nintendo 64 to the NDS, from the NDS to the Wii, this endless eruption of new products and innovation in the world market is astounding.   Nintendo Co. has grown rapidly and has become Japan’s third most valuable listed company, with a market value of over US$ 85 billion.

Nintendo: 2009’s ‘World’s Best Company’

Their entrepreneurial spirit is also shown in their mission statement: they wish to expand by “putting smiles on many people’s faces by offering brand new entertainment that anyone can enjoy, regardless of age, gender or gaming experience” – or in other words, they wish that every type of consumer can maximize total utility.  Thus, this allowed them to have a fast speed of wealth creation.  In 2009, the company made “$2.66 billion USD in revenue”, and its sales “have risen 36% annually over the past five years, while its value growth averaged 38%.”

Nintendo Bets Big on Social DS System

In 2010, unlike other competitors in this global economic downturn, Nintendo was willing to take a risk in a new market. With its new product the 3DS, Nintendo strives to construct its own worldwide social media and network community.  Nintendo’s consistent pursue of innovation is their key to success, and it is what other companies should try to emulate in order to be entrepreneurial.

Nintendo 3DS

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COMM 101 2010

Accounting meets Marketing? Japan Pizza Chain offers $31,000/hr part-time job

I was shocked when I read the title of this article today. A part-time job that pays $31,000 for one hour? That must be the highest paying job on earth! I guess everyone would be shocked initially. But then I scrolled down to discover which company made such a seemingly irrational decision, and I found that it was Japan’s Domino Pizza.

While absorbing the article, I realized that this is exactly how Japan’s Domino wants people to remember their name. This is one of the newborn marketing strategies called the Law of Big Numbers.  “When people come into networks, they have this obsession with quality and quantity.” Compared to putting ads on TV, newspapers, or start a discount promotion campaign, this $31,000 one-time cost to generate massive media attention is more worthwhile, or in accounting perspective, more cost-effective.

Now you give a try, can you tell what’s accounting and marketing behind this promotion?

Categories
COMM 101 2010

Call centre failure – Is outsourcing a good alternative nowdays?

While studying today, I kept receiving calls from Fido customer service, requesting my feedback on their service. Different people kept calling me from the same phone number, and each call was within ten minutes of the preceding one. After intentionally missing ten calls, I got annoyed and picked up to finish their survey. “Sir, I have marked you off the list, thanks.” The callers’ accented voices were echoing in my head; and suddenly, outsourcing popped up in my mind.

Indeed, outsourcing reduces costs for the companies so they can increase their profits. However, in long term, there seems to be a lot of potential problems with it. Outsourcing creates dissatisfaction for employees, customers, and the third parties themselves. Layoffs caused by outsourcing obviously lowers employee morale, and pushing third parties to front line to deal with customers seems to make both sides frustrated. The combination of the above factors results in lowers productivity and damage to company image. Instead of spending so many money and effort to motivate employees and improve brand image, why don’t companies find better alternatives for outsourcing? Saving these resources may be even more cost-effective than reduction in cost by outsourcing.

Failure of outsourcing

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Categories
COMM 101 2010

Hong Kong Starbucks falls in “Green Wave”

Last weekend, I went back to Hong Kong for some personal reasons.  In the Hong Kong airport, I spotted an intriguing Starbucks ad, which reminded me about class concepts like sustainability and marketing strategies.

As I skimmed the ad, the word “personalize” caught my eye.  This is a really thoughtful ad; it emphasizes customization which makes consumers feel that they have certain autonomy to what they are buying, and it also allows them to treat buying coffee as a unique experience.  Moreover, this clear and simple ad also shows Hong Kong Starbucks’ efforts in researching their target market.  Residents of Hong Kong are generally obsessed with “conspicuous consumption”.  A fancy cup decorated with diamonds will certainly catch their attention.

Besides its successful marketing, Hong Kong Starbucks’ promotion of the “Charm Tumbler” reveals that the company has also fell into step with the “green wave”.  Encouraging customers to use the “Charm Tumbler” not only brings in extra profits and cost reduction from paper cups, but also demonstrates corporate social responsibility that enhances a company’s image.  In my point of view, the “Charm Tumbler” is a perfect new development for Starbucks in Hong Kong, where workaholics are everywhere and caffeinated drinks are in high demand.  What’s better than being eco-friendly and maximizing profits at the same time?

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