As business competitions build up, marketers have huge responsibilities to increase effective sales and beat competitors through advertising. Advertisements of products in every possible form try to reach out to consumers. In the process, companies try to make the most efficient advertising with the lowest cost. This is where Rubicon comes in handy. Rubicon provides precise analysis and profiles stratification of potential buyers for different types of products, and then, auction off online ad spaces to marketers. It has somehow turned into a real-time system, not unlike stock trading.

Essentially, advertisements between companies have turned into a competition as well. The company that successfully appeals its advertisement to customers and turns it into effective sales is the winner. And, it has to be fast and precise to capture the right customer.

It is really interesting to know how advertisements have evolved from being a traditional tool to communicate the value of a product into an element of marketing race for companies.

However, the ethics of companies that pry into our personal information and online privacy, in order to obtain data for the perfect display ad spot for potential buyers, is highly questionable.

Source cited:

Singer, Natasha. “Your Online Attention, Bought In An Instant.” The New York Times 17 Nov. 2012. Web. 18 Nov. 2012. <http://www.nytimes.com/2012/11/18/technology/your-online-attention-bought-in-an-instant-by-advertisers.html?ref=business&pagewanted=all>.

Picture cited:

Addante, Frank. Your Online Attention, Bought In An Instant. 2012. The New York Times, New York. Web. 18 Nov. 2012. <http://www.nytimes.com/2012/11/18/technology/your-online-attention-bought-in-an-instant-by-advertisers.html?ref=business&pagewanted=all>.

This article cites that Mr. Ma advocates against detrimental environmental effects posed by multinational corporations’ suppliers.

One of the reasons China becomes a popular outsourcing destination for many multinational companies, is its low cost of production. Second, its rich labour resources. As awareness for labour and environmental rights peak, China takes corrective steps to prevent these multinational companies from further exploiting their resources. Naturally, this will increase the cost of productions of the companies, which seek to minimize cost and maximise profits. Besides, further investigation into these issues will lead to revelation of ugly behaviours in production of the outsourcers. Such revelations will relive the undesirable agendas of Apple and Nike labour issues.

With heightened demands from China for the outsources to take preventive steps to avoid environmental damage and labour exploitation, I am curious to know if in future, this will affect the decisions of new companies that consider outsourcing in China. As for companies that have already established supply chains in China, will costs of productions rise to the point that they decide to discontinue outsourcing in China as it is no longer profit-maximising? Would they turn their heads instead to other developing countries with lower labour and environmental awareness?

Source cited:

Gies, Erica. “Advocate Helps Track Polluters on Supply Chain.” The New York Times 22 Apr. 2012. Web. 18 Nov. 2012. <http://www.nytimes.com/2012/04/23/business/global/advocate-helps-track-polluters-on-supply-chain.html?pagewanted=all>.

Picture cited:

Butler, Phil. China’s Cyber Warrior In The News Again. 2007. Profy. Web. 18 Nov. 2012. <http://www.google.com/imgres?num=10&um=1&hl=en&tbo=d&biw=1163&bih=562&tbm=isch&tbnid=wt0Lk3PLD2S04M:&imgrefurl=http://profy.com/2007/08/26/china-cyberwars/&docid=iwprcm0yToHCyM&imgurl=http://profy.com>.

Pollution in China. 2011. Web. 18 Nov. 2012. <http://www.google.com/imgres?start=15&num=10&um=1&hl=en&tbo=d&biw=1163&bih=562&tbm=isch&tbnid=qUwqN59sJrI7pM:&imgrefurl=http://crisispictures.blogspot.com/2011/11/pollution-in-china.html&docid=a6VxMMY>.

Professor Yao’s blog interests me because it answers the question that has lingered in my mind all along. Back home in Malaysia, the exact same phenomenon like in China occurs. As I read through this blog, a memory conjured up. It happened in high school when my friend gasped and pointed at my teacher who brought her Mac to class. I remember vividly that she said “Look! The teacher is rich!” The word “rich” is a direct example of the association that Professor Yao makes between the brands and social status. Using Mac provides a “prestigious” and “rich” brand experience to the user, besides elevating his or her social status.

What I learn from Professor Yao’s blog is that brand positioning indeed differs across cultures. Thus, when expanding new markets, it is rational to carefully observe how consumers from different cultures collectively view product brands, before setting prices and deciding how to establish their brands. Nonetheless, it is equally important to examine the various factors that affect a consumer’s decision when purchasing, whether the consumers in a culture weigh more heavily in practicality, quality, innovation, price or brand experience.

Source cited:

Daye, Derrick, and Brad VanAuken. Brand Positioning For Chinese Markets. Branding Strategy Insider, 28 Aug. 2012. Web. 17 Nov. 2012. <http://www.brandingstrategyinsider.com/2012/08/brand-positioning-for-chinese-markets.html#more>.

Picture cited:

Luxury Brands Not Safe From Recession Yet. 2008. UTalk Marketing. Web. 17 Nov. 2012. <http://www.google.com/imgres?num=10&hl=en&tbo=d&biw=1163&bih=562&tbm=isch&tbnid=Kfk0kVbB36iVAM:&imgrefurl=http://www.utalkmarketing.com/pages/Article.aspx%3FArticleID%3D12685&docid=F3iDQhvH8BR-6M&imgu>.

Lululemon emphasizes employee engagement. Lululemon teaches the employees to create values and goals in their lives and careers. Lululemon teaches its employees to love their lives. This is Lululemon’s corporate culture.

This article cites that there exists a direct link between employees’ enthusiasm and customer satisfaction. When employee engagement increases, client service level follows lead, which brings to better financial returns and growth. This phenomenon is proven by Lululemon’s success to pull through the second quarter of this year, which is deemed a hard time for many other retailers.

Five benefits of increased employee engagement (increased productivity, employee retention, customer satisfaction, innovation and reduced costs of recruitment) have been identified to contribute to higher profitability of businesses. The importance of employee engagement as corporate culture is capturing more interest from executives and professionals alike.

Companies that value their employees, such as Lululemon, Zappo and Google generally generate good returns. In the future, I wouldn’t be surprised when the trend converges and existing companies reshape their corporate cultures to facilitate the elevation of employees’ satisfaction, enthusiasm and commitment in working in the companies.

Sources cited:

Stoller, Jonathan. Engaged staff deliver high returns for Lululemon. Ed. Jill          Borra.N.p.,Nov. Web. 15 Nov. 2012. <http://www.theglobeandmail.com/report-on-business/careers/business-education/engaged-staff-deliver-high-returns-for-lululemon/article5328368/?service=mobile#menu>.

Pictures cited:

How Lululemon Kept Its Cult. 2012. Business Insider, New York. Web. 17 Nov. 2012. <http://www.businessinsider.com/most-important-business-case-studies-2012-10?op=1>.

Leyshon, Laura. Lululemon Canada’s Fastest-Growing Brand. 2012. The Globe and Mail Inc., Toronto. Web. 15 Nov. 2012. <http://www.theglobeandmail.com/report-on-business/careers/business-education/engaged-staff-deliver-high-returns-for-lululemon/article5328368/?service=mobile#menu>.

Skelton, John. Canada’s Most Valuable Brands: TD Takes Top Spot. 2012. Supply Chain Almanac. Web. 17 Nov. 2012. <http://supplychainalmanac.com/about-us/>.

Young, Pat. Engaged Staff Deliver High Returns for Lululemon. 2012. The Globe and Mail Inc., Toronto. Web. 17 Nov. 2012. <http://www.theglobeandmail.com/report-on-business/careers/business-education/engaged-staff-deliver-high-returns-for-lululemon/article5328368/?service=mobile#menu>.

Haruo Miyagi, CEO and founder of social entrepreneurship organization,  Entrepreneurial Training for Innovative Communities (ETIC) has a different definition of “disaster relief”.  Diverting from their initial provision of basic needs to the Japanese victims of 2011’s earthquake, tsunami and reactor meltdown, ETIC initiates a “Disaster Recovery Leadership Development Project” to help revive the damaged economies in Tohoku. ETIC recruits young business people from big corporations to help recover the damages infrastructure, such as housing units, companies and transportation system. Also, to improve the Tohoku economy, ETIC pinpointed the flaw in the Tohoku fishing industry and started a program to teach the application of IT in fishing industry in junior and high schools.

What ETIC does is truly amazing. It has a large vision; it sees a better way to help the disaster victims, to pull them back into the” survival race” than merely providing provisions. Reviving the economy means that incomes of households become available again to the victims to start new lives. Recruiting business talents from other parts of Japan gives the victims hopes that their loss from the disaster is salvageable. With ETIC’s contribution, Tohoku’s economy will definitely be able to resume its momentum at a faster pace.

Source cited:

Miller, Hannah. Earthquake Recovery in Japan: Entrepreneurs to the Rescue. Ed. Andrea Newell. N.p., 22 Oct. 2012. Web. 17 Nov. 2012. <http://www.triplepundit.com/2012/10/disaster-recovery-through-social-entrepreneurship-in-japan/>.

Picture cited:

Miller, Hannah. Earthquake Recovery in Japan: Entrepreneurs To The Rescue. 2012. Triple Pundit. Web. 11 Nov. 2012. <http://www.triplepundit.com/2012/10/disaster-recovery-through-social-entrepreneurship-in-japan/>.

Providing Cloud Services that Match the Needs of Disaster Victims and NPO Networks. 2012. Care For Japan. Web. 11 Nov. 2012. <http://careforjapan.us/>.