Double-11, Alibaba’s sale exceed prediction !

doule-11

“Double-11”, a popular term describing the November 11th (Single’s Day), appeared in 2012. In this day, a large number of online retailers have sales and some activities, the sale amount is always refreshing record according to Alibaba’s report. Why there is a such high sales amount in that day?

Firstly, Alibaba did well in value proposition, it has a solid base that people are more rely on online shopping instead of going to entities, it’s convenient and electronic transfer doesn’t give a real feel that you have spent a lot of money. So it has a large market and consumer segment which can support greatly discount and bring higher profit.

Secondly, its intensive advertisement is an essential strength of Alibaba. You can find them everywhere, in TV and all kinds on websites, especially the social network sites like Weibo. All propaganda catch words “Single” and “Loneness” which attract single people to be willing to shopping. In addition, it includes more than 27000 global brands with catchy sales activity and really low price, so not only single people, couples, middle-aged people and even old people all take part in.

I suggest Alibaba improving its mobile transaction which is slightly lagging. They can hold some activity like buy one get one or discount to encourage people using mobile devices to shopping. Using mobile devices facilitates consumers to shopping wherever they are and enlarge the market, so it will bring more benefits to both buyers and company.

http://www.bbc.com/news/business-29999289

 

Oh Baby’s growing

oh-baby-foods

Oh Baby Foods, a company focus on baby food, grows up quickly in recent years. Ms. Free, a successful entrepreneur of company, experienced a hard period in the beginning, but due to her idea of offering frozen food and shelf-stable foods, the production and market expanded. The biggest merit of her is her inflexible and innovative mind.

From 2011 to 2013, she changed packaging twice, made her products more nutrient, shelf-stable and convenient, which increased sales volume efficiently. Notably, she shifted from frozen food to shelf-stable foods in 2011, this change brought many benefits to business, for example, Oh Baby could pay for ingredients and packaging, entered larger market and secured a five-year loan. The changes made by Ms. Free is the main reason that why Oh Baby can become national brand.

Oh Baby did well in differentiation, their products have certified organic, unique flavors, nutrient but shelf-stable foods and convenient packaging. In addition, the firm realized to save costs of manufacture when the sales volume increases, so cost leadership brings more profits.

Ms. Free did well in value proposition and then she plans to produce foods for older children, not only for infants. And she want to improve managing logistics, I suggest her creating a management system and company culture. For instance, encouraging staffs by rewarding and power. I hope Oh Baby can become better in the future.

Reference:

http://boss.blogs.nytimes.com/2014/11/06/a-baby-food-company-grows-up/?module=BlogPost-Title&version=Blog%20Main&contentCollection=Business%20Day&action=Click&pgtype=Blogs&region=Body

http://www.ohbabyfoods.com/about-oh-baby/our-values/

Why we need Arc or Social Enterprise?

SOCIAL_ENTERPRISE_HOME_IMAGE

If the United Nations (UN) was fully funded, they may concentrate more on social issues like poverty, children’s health and housing.  But they need the help of Arc and social enterprise.  If UN give fund to countries where need help directly, the impact is not lasting. I suggest UN give a general scheme and financial support, what Arc and social enterprise can give hand to are the specific details UN can’t cover by itself.

Specifically, upward Arc has enormous effect on social problems of some developing countries, like what Arielle Uwonkunda did in Rwanda. Founded entrepreneurs can join the exchange programs to get sufficient knowledge then maximizing efficiency and make contribution to their home country. For instance, they can run their own business in home country and make much benefits to the economy, which can make lasting influence rather than direct investment from UN.

As for social enterprise, they provide basic services to people who need help. If UN can provide funds, they are able to offer more fundamentally programs and services to solve social issues, for example, building houses for homeless people, offering free education opportunities to children whose families can’t afford the tuition fee. And they can help governments and UN to leverage public and private resources, and develop the plan they come up.

So that’s why we would need Arc or social enterprise if United Nation was fully funded.

References:

http://skollworldforum.org/about/what-is-social-entrepreneurship/

http://www.sauder.ubc.ca/Global_Reach/ARC_Initiative

http://news.ubc.ca/2014/06/30/upward-arc/

 

Challenges for popularizing Apple Pay

starbucks

In order to facilitate consumers’ payment for their beverages, Starbucks started to accept payment through app in mobile phone, and got a good grade in last year. It’s a special marketing strategy (a strength in SWOT) to attract more consumers and expand its market to include smartphone owners. But if Apple want to imitate, it may not be that successful.

Firstly, it’s not safe, after entering a credit card in Apple Pay, it will be permanently accessible on that smartphone. What if the phone is lost, or the hacker enters your phone’s system? That’s why only a few banks signed on to cooperate with Apple.  This is one weakness.

Secondly, though Apple want to differentiate from competitors and become the first one using online payment system, costs of implement still should be considered. They needs a large number of proficient staff so training program is necessary.  In addition, it offers a loyalty program to encourage using its app, like free drinks and other extras, which is an extra cost. Furthermore, in order to sign up with more banks and attract more users, they should improve the security of system or create an own app for payment (an opportunity), the cost of technological research is high.

From my point, refining the system is the most urgent thing instead of popularization. It’s difficult to change payment’ habits of American without a perfect system and strategy in short-term, so Apple can run other profitable schemes simultaneously to cover the high cost of this long-term plan, publishing a better system in the future.

http://www.economist.com/news/business-and-finance/21627122-applepay-may-not-be-successful-starbucks-changing-americas-payment-habits-pay-you-go

 

See world around you in a windowless airplane

CPI-cabin, picture

Almost everyone had a dream of flying in the sky in childhood, even some adults still keep dreaming it. From this point, windowless plane has caught social attention.

According to the idea of Centre for Process Innovation (CPI) who want to be the first one to design a windowless airplane, what you see from panels are shoot by cameras mounted outside of the plane which create a delusion that the cabin wall are transparent. Like what Angela said, passengers can enjoy the fascinating scenery through a disruptive view. It can attract more consumers, especially who really like excitement and adventure.  The CEO and manager did well in value proposition, they are trying to be the first one getting into consumers’ mind and will take the leading place in this industry.

In addition, this innovation bring a lot of benefit, including producers, consumers and even environment. The plane wall will be thinner and have better quality, which cause less fuel used, so from management accounting aspect, cost of production reduces leads higher profit. Furthermore, lower usage of fuel emits less toxic emission like CO2, which abate green-house effect efficiently. All of them improve business ethic and sustainability (according to Angela’s blog, sustainability can be effected by environmental, social and economic demand factor).

To be honest, it’s a really good plan and innovation, I expect to take a “windowless” plan in the future!

Site C hydroelectric project,a technical factor to mining industry.

Seen from the Site C megaproject, it can be regarded as a technological external factor. Because as long as this project completing, it would benefit mining, gas and oil industries which need the clean hydroelectric, then improving the whole economy. Simultaneously, I find a news about tapping mining projects into First Nation to boom economy again, so if the Site C running successfully, the clean hydroelectric can give a hand to mining projects then bringing significant benefits to First Nation. But there is a conflict.

First Nations chiefs said Site C will cause valley flooding which is harmful to fishing, hunting industries. So they reject this project. But in my opinion, the merits of this project are outweigh the demerits. First of all, the forest products industry had almost disappeared by the late 2000s, so many related companies and sawmills bankrupted, and a large number of workers lost their job. But mining industry saved the business slump instead of fishing, hunting industries. And some mining projects were taking place in the traditional territory, so they provided more economic opportunities for First Nations people and none-native neighbors. Thus, I suggest aboriginal chiefs invest more resources on mining, which has more return. Even though there are some disadvantages but nothing is perfect. They could expand fishing industry in elsewhere, but improving mining industry is better to whole economy.

References:

http://www.vancouversun.com/business/First+Nations+North+coast+aboriginals+position+themselves+resource+boom/10228682/story.html

http://www.vancouversun.com/news/First+Nation+chiefs+stage+Site+showdown/10215965/story.html

Challenge of Cupid, a dating website.

Cupid, a company who running subscription-based dating website withers while other free dating services are booming. Seen from the news, Cupid faces dropping number of new users and profit, while the competition and marketing cost are increasing. The most important reason is its membership fee, which push users to other free websites.

I recommend Cupid to use differentiation strategy in conjunction with focus strategy in low cost. Cupid is a big company which have price-sensitive customers in industry. Under this circumstance, as other dating websites are free, like Tinder, focus strategy in lower cost is really urgent and important, removing the subscription fee can attract more new users quickly and keeping market position of Cupid.

Differentiation strategy is very important but not that urgent which need long-time plan, because PoD is the essential part in differentiating Cupid from rivals then getting into consumers’ mind. Cupid has developed its own location-based dating app –Tangle, which is free and can facilitate users as dating on smartphones. But for fee- basing features of Tangle, I think Cupid can offer a free probation period to appeal more users. In addition, if Cupid can cooperate with some dating program and provide more interesting meeting activities or opportunities according to the preferences of different customer segments, it will gain more benefits, including both profit and fume, which can’t be imitated by rivals.

Reference:

http://www.economist.com/news/business-and-finance/21619901-while-some-dating-services-are-thriving-others-fall-limp-tough-love

 

Nike’s advertising position in World Cup(comments to classmate’s blog)

According to Jessica’s blog(https://blogs.ubc.ca/jtreagus/2014/09/27/nikes-advertising-position-in-the-world-cup/), Nike’s wonderful advertising in World Cup gave a hand in dominating role of company, as well as its own campaigning. With these strategy, their unique and iconic products have become a fashion and lifestyle symbol. I agree with Jessica’s opinion, Nike did well in PoD (points of different) and value positioning, because these are what really essential in differentiating Nike from its competitors in consumers’ mind.

For positioning, Nike spent heavily in its own campaign combined with building buzz for its gears, in order to catch investors, organizations (or companies) and consumers’ eyes. Fortunately, World Cup had interest in Nike’s soccer gears and apparel, then cooperated with it, which push Nike to every corner of the world through endorsing by athletes. It’s efficient for Nike to get into consumer’s mind, so demand was boosting even price of products were not that low, as well as profit and market share of the company.

As for PoD, Nike has its unique and symbolic goods, furthermore, its powerful marketing strategies. As I mentioned before, it became the sponsor of World Cup instead of Adidas, so there are many star-style soccer products which are attractive to football fans, that’s what rivals can’t imitate. In addition, Nike heightened brand awareness through buzz. Those are PoDs which superior to rivals.

The effect of the board and these marketing strategy are impressive, the market share, shares, profit and demands are all increased, Nike is really successful as sporting-goods maker in this industry.

 

Reference:

http://www.theglobeandmail.com/report-on-business/international-business/us-business/nike-profit-tops-estimates-as-world-cup-gear-boosts-sales/article20794604/

McDonald’s issue

http://www.brighthub.com/office/entrepreneurs/articles/115557.aspx

The business ethic indicates that each part of the whole society, include employees, suppliers and consumers and so on, should bond with each other and develop together. McDonald cooperated with lawmaker, and got an unfair legislation: pay teenage employees 20 percent less than federal minimum wages. This legislation satisfied their own selfish wants but harmful to society and workers. Also it doesn’t allow workers to join union, so employees are unable to protect their rights and negotiate for higher welfare. They just consider their profits, but ignore the welfare of workers.
In addition, McDonald sold unhealthy food, tortured animals, and destroyed the Amazon rain forest, all of these are violet to business ethic. Maybe they can get high profit from them in short-run, but for long-run development, as they destroy the company’s reputation then lost brand loyalty, they are unable to improve company because no one will be willing to buy their products. And they destroy the environment and explore resources without regulations, there are not enough resources can be used to produce and innovate in the future. So I suppose governments or public department should set some regulations to McDonald, like asking for better welfare for employees and increase the monitoring to improve the quality of their foods. So the business can develop in right direction and the each part of business can come together.

Prep homework of Class 3: Groundwater Issue

http://www.timescolonist.com/news/local/wild-west-of-groundwater-billion-dollar-nestlé-extracting-b-c-s-drinking-water-for-free-1.587568

From the article “‘Wild West’ of groundwater”, I think Nestlé violates the social responsibility of business because it does not consider the social welfare and benfit. In fact,Nestlé drawing water from Hope without measure, report and fees, so it is not a public and fair behaviour. Then they bottled and sell them back to the Hope with higher prices, which damage the benefit of consumers. Maybe the lack of groundwater regulations in B.C is a reason why Nestlé take water freely and don’t report the volume they take to government and public. They said they did more on recording the qulity of groundwater, but their reports are internal and not that voluntary like they said. In conclusion, Nestlé doesn’t excute social responsibility and business ethic successfully.
Turning to the position of Council, groundwater should be treated as public trust which can benefit all Canadians.  As for this concept, I think governments should play the essential role in achieving this goal. If companies keep withdrawing water in free, social fundation will be damaged. So in my opinion, the most efficient way to solve or improve it is increasing regulations, monitoring and reports by governments, for example, they can impose taxes to companies, or control the quantity they take. In addtion, governments can cooperate with drawing-water-companies to maximise the long-run profit as well as the socialwelfare. The whole society, include consumers, suppliers,emplyees, etc, should be combined and develop together.

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