Monthly Archives: October 2014

Netflix is learning that breaking into an international market may not be as easy as it seems on paper. The company probably felt that the idea of offering a high-quality, unlimited time TV-shows and movie service would be a very popular idea throughout the globe. However, they are finding, that in different countries, their product may not be as attractive as it is in the US. Netflix had trouble breaking into South American markets, due to the lower standard of living in these countries, and is now having trouble breaking into the European market, due to different tastes of the customers.

The issue Netflix is having, highlights the importance of creating a strong business model for each market you are entering into. The company’s business canvas and central business goals may have worked well in the USA, Canada, UK and Scandinavian countries.  However, now that they are moving into markets where the customers have vastly different content demands as well as countries where the technological infrastructure is not as strong, it becomes more necessary for Netflix to approach all these markets with a different perspective. I feel Netflix should be creating new business plans for each of these new markets, and what they plan to do, to satisfy the customers in these markets.

The recent push to help first nation citizens regain their identity is starting to have a strain on businesses. As we can see from the article, first-nation territories are becoming off-limits for companies to exploit and the laws required to start a business, such as mining, in these areas is much more strict and tedious. Companies have to go through many more formalities and ask the tribes personally for use of these lands. Therefore, it is becoming more and more imperative that companies consider the legal issues associated with trying to use first-nation territory. This is an external factor that firms have to be aware of and plans to tackle these issues should be made in advance. All the legal documents should be thought of and the interactions with the first-nation representatives should be planned. Companies should realize that these issues may cost them extra time and money and therefore, it should definitely be included in their business plans.

Also as the importance of ethics grows in businesses it becomes an even greater necessity for companies to handle these issues with care. It is very important for a company to make sure they go through these procedures respectfully and correctly so that they can maintain their image and get land they desire. Also companies should be prepared for the notion that they might not get what they are looking for, as in this case, and realize they have to leave the issue and move onto a plan B.

Nike’s online sales have recently peaked, as the company increased the customization options available to customers. The sporting-good giant is allowing customers to pick the colour patterns & the lace colour of their new shoes and it is resulting in a massive boost in sales as customers are given free reign over the colour of their shoes. This strategy from Nike is excellent as allowing more customization really helps improve demand for the companies  products. By giving customers what they want specifically, Nike is helping fulfill more of the customers wants and at the same time they can also charge a little higher for the shoes as they are personally made foe each individual. Another big advantage this has is helping reduce Nike’s inventory levels. By making products on demand Nike doesn’t have to predict what customers will be buying and therefore, they are less likely to produce a lot of extra shoes that will go to waste. Nike can also use the customer’s preferences to see trends in shoe colours and sell more of those colours in their stores.

Overall this strategy has several benefits for the customers but more importantly for Nike, as an improved website and better customization makes the firm seem more personal, which is very difficult for a big brand to do. Also it helps improve brand loyalty for Nike as customer’s will be more satisfied by their products.

Apple’s recent release of the iPhone 6 caused the company to spiral back into the headlines as the demand for the phone is so high. The iPhone 6 Plus offers direct competition to the Samsung Note phones and customers have taken to the product excellently with Apple’s lead-times increasing to cope with the demand.

The question is how does Apple manage to keep getting such a phenomenal response to their products. Personally I think it is a combination of Apple’s marketing ingenuity and their philosophy to keep their products simple. Apple really play on the idea that their products are the most elegant and stylish products to own. They have managed to break the conventions of the technology market and make their product a symbol of modernity. Many companies have tried to follow suit such as Sony with their Vaio laptops, but none have been able accomplish this feat at the same level that Apple has. The question many ask is, “How do Apple products do so well when their competitors have had similar products for a much longer time?” The simple answer to that is Apple have created their brand into something much more than a piece of technology. Apple have also managed to create a massive customer-base with people coming every year to buy the next iteration of the companies iPhone or iMac products. What this proves is that brand image really is a thing. A company can sell products through it’s name and although sales may drop if the product is very weak, we learn that if the product is in line with the competition it will probably do better just due to the brand name.