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!

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