AT&T, one of the largest telecom companies in the US market, explicitly stated that they were unwilling to enter the Canadian market. AT&T stepped out from the wireless auction market by the Canadian government, stating that there is not “enough room” for four players in the industry.

AT&T

Rogers, Wind and Telus are the three highly established telecom companies in Canada. A confidential memo obtained by BNN says that “AT&T had looked into Wind Mobile and Mobilicity in detail and passed”. This somewhat depicts an example of Porter’s five force analysis, as the companies created barriers to entry for AT&T by being strongly established in the markets and having low economies of scale. Vodafone and Telenor are also planning to enter the Canadian wireless market and the auction is going to happen in January, where four blocks of 700 megahertz spectrum are going to be up. Verizon, another telecom company, also seemed interested in being a part of the auction but finally decided not to rather participate in the auction. This thus shows that how a strong brand image and establishment could help an industry become less competitive and less threatening for the existing companies.

So Twitter Inc. finally does file for an Initial Public Offering (IPO)! There were predictions about the company going public for a few months now, but it was predicted that it would go public around the year 2014. However, Twitter has shocked people by filing for an IPO this early, just before the vacation time around.

According to a Reuters report, the share prices of Twitter could almost double in its first year. So, how does the company make its revenues, and how reliable would it really be to invest in Twitter Inc.? Twitter was successfully able to capture a part of the $200 billion global TV market with Amplify. Also, their acquisition of an online mobile-ad company, MoPub, is going to help enhance the company’s revenues. Experts say that twitter has done the hard part of building a strong brand in the market, and from here, it should thus be easier for the company to prosper in the public market. However, there were similar predictions when Mark Zuckerberg announced his company Facebook going public, and only time could tell as to whether twitter’s move to go public would be a smart one or not.

Blackberry! This company has been in the news for over a year now. A recent article says that Blackberry might be bought in pieces by Google and Cisco Systems. Fairfax, Blackberry’s largest shareholder, is also linked with entirely buying it out. Due to this news, the company’s share rose by 4 percent. This is a great demonstration of how the affiliation of big brands like Google and Cisco affect people’s image about a company.

The failure of the company, Blackberry, could be somewhat related to its internal factors. The company failed to innovate when other competitors like Apple and Samsung were. It stuck to its same old models with hardly any differences in its new products. The launch of Blackberry’s latest products, the Z7 and Z10, were also flops as it met with a poor demand globally. The company has decided to hence drop the price of Z10 by a steep discount. A continuous failure of its products and lack of innovation thus seems to be one of the reasons why the company has come to a stage of being taken over.