Tesla shares have dropped 10 percent after a recent video of a Tesla Model S sedan was put up on YouTube. The video shows footage of the vehicle in flames after a large piece of metal punctured the vehicle’s protective armor, piercing the lithium battery ion. The Model S is a fairly new electric car that was introduced to the public back in 2009. Retail deliveries began in June 2012. The video surfacing on the internet has become a growing concern to investors as the public begins to question the safety of the lithium battery ion. However, Tesla Motors Inc. CEO and co-founder, Elon Musk, defended the electric car’s safety in a recent blog post. Musk reiterates that the cause of the fire was not a malfunction of the vehicle but an external factor that penetrated the battery causing it to burst into flames. In a letter to Tesla, the driver of the vehicle expresses his unyielding support for the company, stating that

“I guess you can test for everything, but some other celestial bullet comes along and challenges your design. I agree that the car performed very well under such an extreme test. The batteries went through a controlled burn which the internet images really exaggerates.” – Rob Carlson

It was an unfortunate accident that was foreseen by none. This just goes to show the power of a brand and how important the name is. If not handled properly, freak events similar to the Model S fire can tarnish a brand permanently and will require mass amounts of effort to overcome.

Article Links:

http://www.theglobeandmail.com/report-on-business/video/video-tesla-shares-cool-after-fire-report/article14679523/

http://www.ibtimes.com/tesla-motors-ceo-elon-musk-identifies-cause-model-s-sedan-fire-defends-electric-cars-safety-1415602?ft=c29d1

The French government created a law this past Thursday that prevents the gigantic online retail store, Amazon, to offer free delivery to customers on top of a maximum 5 percent discount on books. This is a part of France’s movement to protect small and local bookstores from supermarket chains. Online book sales rose to 13.1 percent of total book sales in 2011, and an increasingly high number of book buyers now gear towards buying online rather than in stores. The French are taking aim at U.S.-based Internet giants that take away from local business owners.

With the emergence of large supermarket chains that sell just about anything, local businesses have been hit the heaviest.  More and more consumers have been making the shift from locally-owned stores to massive franchises, but there are many benefits to buying local. It not only boosts the economy, but it creates more job opportunities for the people within the community. Contrary to the dominance of supermarket chains, there has been a noticeable shift by many companies to support local businesses. It has become a new marketing mechanism to attract potential customers. Society has come to realize that sustainability is a key element to the future.

Article Links:

http://www.nytimes.com/2013/10/04/business/France-Takes-Aim-at-Amazon-to-Protect-Local-Bookshops.html?ref=international&_r=0

Within the recent classes, we have all become familiar with Kodak and their failure to realize the camera market’s shift from film to digital. This late realization has resulted in a huge consequence to the company and their sales. Has the time come for companies within the cigarette market to decide whether or not to make the switch from the traditional cigarette to the e-cigarette?

The e-cigarette is a device that allows the consumer to vaporize a solution containing nicotine without the toxins from burning tobacco. Opinions vary over the health benefits/risks that are tied into e-cigarettes and whether or not they offer a healthier alternative to the traditional cigarette. In my personal opinion, e-cigarettes are the future of smoking. We live in the digital age where more and more everyday tasks have transitioned from the traditional into the modern. Reading, shopping, music and countless other things have transitioned into the digital market. It is time for the cigarette companies to bring about innovative change into their market for fear of a new substitute product to emerge in future years. Don’t realize the “Kodak Moment” when it’s too late.

Article Link:

http://www.economist.com/news/business/21586867-regulators-wrestle-e-smokes-tobacco-industry-changing-fast-kodak-moment