Samantha Wong's Blog

Have you ever heard of Singles’ Day? I found the concept extremely interesting, especially because it doesn’t truly celebrate singles. Instead, millions of Chinese shoppers dive deep into online shopping, which I suppose is one way to celebrate. Alibaba is a company that is directly associated with this festive day. The company reached record-breaking sales of $9.3 billion on November 11th and I’ve derived a few reasons:

Firstly, Alibaba saw opportunity in Singles’ Day and adopted a direct business model, obtaining customers without needing to leave the comfort of home. The company is able to reach its customers through a computer and cater to their needs. They cut out the middle man of retail stores and reduce costs of rent, labour, and inventory. Without needing to worry about running stores across the country, Alibaba can focus on improving product and efficiency. Also, having an online store allows accessibility to consumers international, broadening their market base.

Secondly, the company is successfully keeping up with the competitive market. While they are a retail brand, their strategy is catered towards technology innovation in China. Since the middle class is expanding, more homes can afford computers, creating direct links to online shopping. Furthermore, increasing real income provokes shopping all together, and adding those two factors together you get Alibaba’s success.

Alibaba – www.creditwritedowns.com

While the company is currently reaping large profits, I fear eventually the firm will no long prosper. Alibaba will most likely begin producing new ways to create innovative product, perhaps increasing their costs to better technology. While they may be able to afford it now, what will happen if China’s economy falls? What will happen when consumers’ purchasing power begins to diminish and no one can shop online? I hope the company is strategic with its amount of risks and doesn’t solely rely on China’s expanding middle class.

References:

http://www.theglobeandmail.com/report-on-business/alibaba-singles-day-sales-break-past-8-billion/article21538437/

I came across an interesting business research blog by Christopher M. Barnes, who is an assistant professor at University of Washington’s school of business. He wrote on how sleep deprivation can cause managers and leaders to act abusively to employees, thus creating a negative environment. Immediately I thought of the atmosphere in Zappos and recalled a discussion about the importance of happy employees.

eattoperform.com

Employees are direct representatives of a company. They are the people who create a culture, brag to their friends about how much they adore the company they work for or complain about how poorly the work environment is. Employee retention is just as important as customer retention. Loyal workers contribute positive attitudes at work and in turn, create a suitable experience for potential clients. Managers focus on making the customers happy but forget who directly interacts with them in the first place. All they have to do is get enough sleep, put on a smile, and watch the magic of happiness wring in profit. Or they could pull an “all-nighter”, cause employees to quite, and waste money on training new workers. I’ll let you do the math.

All outcomes derive from the inputs invested in them. Cranky leadership will undoubtedly display disappointed customers, driving away revenue, and result in smaller paychecks for the cranky leaders. Would it kill you to sleep?

External Blog:

https://hbr.org/2014/11/research-your-abusive-boss-is-probably-an-insomniac

BC Hydro’s Site C proposal has generated quite the conundrum among the First Nations people. Though I am one to appreciate effective innovations and understand that Site C may be beneficial for electricity purposes, the cons outweigh the pros enormously.

BC Hydro’s Site C – www.biv.com

The project does not consider the well being of the population who first claimed this land: the First Nations. In order for innovations to not only be accepted by the First Nations but also be widely successful, firms must consider every group’s beliefs and values. Marketers tweak products to meet the needs of all potential consumers, but companies are ignoring the needs of aboriginals. If a firm’s goal is to maximize profit, shouldn’t they appeal to everyone in the community and avoid law suits and time consuming court debates? While this is difficult due to variations of values- city-dwellers may value sufficient electricity while aboriginals value a clean environment, native culture, and community- nothing is impossible.

Personally, I agree with the First Nations. It doesn’t make sense to propose “clean energy” while the company contradicts itself by flooding land and destroying fishing habitats. I suggest the company to put themselves in the shoes of the aboriginals, realize that this project is attacking communities, and understand that they would fight back the same way if their home was threatened.

References:

https://www.sitecproject.com/

http://www.theprovince.com/life/Smyth+First+Nations+play+role+resource+development/10232740/story.html

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

“If the United Nations was full funded, why would we need the Arc or social enterprise?”

While it is true that social entrepreneurship revolves around solving problems that derive from poverty and lack of funds, it would still be beneficial to have stand-out individuals and groups such as the Arc. From the articles I read on social entrepreneurship, I believe these enterprises provide incredible opportunities for sharing ideas. Without groups like the Arc and individuals such as Muhammad Yunus, who would pitch the ideas? Would we rely solely on the United Nations to come up with it all?

Many of the world’s issues have been solved by social entrepreneurs and it has a lot to do with personal experiences. These are the experiences that drive individuals to make a difference. Seeing family members and neighbors starve on the streets inspires you to search for a solution. Personal goals and passions motivate you to make a difference. It’s what social entrepreneurs feel deeply in their hearts that makes them so successful and ambitious. I personally feel a strong connection towards poverty in China, simply by visiting family members who, unfortunately, are not as well off as we are here. Compassion drives success.

We may think that all it takes is money to solve the world’s social issues, but we’re forgetting how important a good heart is. Who’s going to continually check up on the problem once it’s been funded to ensure continuous success? Chances are it’s going to be the ones who truly want to evoke a positive change.

“Be the change you wish to see.” -Mahatma Gandhi

References:

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

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

I came across a classmate’s blog on luxury airline flights (which can be read here) that spiked a familiar topic in my mind. The article talked about Singapore Airlines offering a superior, $23,000 flight. Robbie pointed out that the airline is potentially hurting its business due to a low demand of such a high priced ticket. I completely agree considering the demand for regular and business flights are much more popular and taking up space for luxury ticket holders turns away many viable customers.

Luxury Singapore Airline Seating – maximumbhp.wordpress.com

As I was reading the blog, I reconciled a particular lecture in which we discussed disruptive innovations. Airplanes, nowadays, are disruptive innovations for the first-ever invented airplanes. Today, a huge population is able to purchase an airline ticket without having to break the bank. Similarly, coach airline tickets are disruptive innovations for luxury seating since they are attainable by a much broader clientele and require less space, making efficient profits. Knowing this, I find it strange for an airline to devote so many resources into a narrow-market division. To maximize profits, wouldn’t it make more sense to attain large numbers of customers at lower prices than a small handful at a high price?

Though it is understandable that some people can easily afford a luxury flight (and are willing to spend $23,000) I think the airline should minimize the space used for these tickets to around 5-10 seats. That way, the company can still offer deluxe seating to those who can afford it, but aren’t left with large empty spaces. Also, since the supply will decrease, demand will rise, making these high priced flights even more desirable. Wouldn’t you like to say you’ve flown in a throne once in your life?

Peer Blog: https://blogs.ubc.ca/robbiegrills/2014/10/02/small-volume-of-luxury-or-large-volume-of-general/

When you think about Microsoft, you think about how its product writes your university papers and makes spreadsheets when Comm 101 courses demand income statements. However you rarely think about how advantageous it is in your life or how “cool” its features are. Unless, of course, you’re a grown adult with a business career and your entire life revolves around Microsoft programs. In my generation, it’s much more efficient to jot notes down on a piece of paper or add a note in our phones instead of having to carry around a laptop wherever we go. That is why Microsoft’s new strategy is so effective.

Microsoft On The Go – www.techebizz.com

Announcing the release of a free app, available on phones and tablets, has dramatically increased Microsoft’s relationship with younger clientele. There is literally no excuse to not use Microsoft product since it is so easily accessible and we’re already always on our phones. In this case, the point of parity is mobile application, and the point of difference (which the company already had) is Microsoft’s detailed features and qualitative programs. Already, the company trumps current mobile apps such as Sticky Notes and preloaded, simple smartphone widgets.

Personally, I love this strategy because this is exactly where technology needs to be. This generation demands portability and innovation. From a business point of view, Microsoft has expanded its customer segments to a younger population, increased its channels to mobile devices, and broadened its value propositions to high accessibility.

Furthermore, previous to this innovation, the population has been split between Apple and Windows. However, Microsoft’s app is a genius way of reaching out to customers who are “Team Apple”, and thus, attracting even more loyal users.

I think Microsoft just took over the world.

Article Reference: http://www.theglobeandmail.com/technology/gadgets-and-gear/microsoft-makes-core-office-document-features-free-on-ipad/article21476004/

Photo Reference: www.techebizz.com

Link: http://www.theglobeandmail.com/report-on-business/international-business/apple-to-unveil-new-ipads-oct-16/article20920046/

Of course, Apple is at it again creating newer, innovative models, and this time it’s in a category that isn’t its strongest: the iPad. Many competitors have already produced similar, cheaper tablets such as the Windows Surface, that have been negatively affecting the profit of iPads for Apple. While, the company still holds a high and mighty crown above other stores, most of its revenue comes from iPhones. In order for the firm to not fully rely on the production of cell phones, they need to keep up with other advances to have a strong lead instead of simply focusing on one market.

Apple’s iPad – www.businessinsider.com.au

Currently, Apple’s iPad isn’t anything special. It doesn’t differentiate significantly from all the other tablets out there. It’s touchscreen (they all are). It’s light and thin (they all are). And it’s got pretty cases (check out the nightmarket). There’s no one specific, amazing thing that sets it apart from another tablet. As Porter says, if you’re going to play the game, either perform different activities or perform the same activities differently. Apple is more than capable of being different with its iPhone, but not so much the iPad. The company is producing enough to play the game, but not enough to win. If they plan to hold the #1 spot for all technologies, they need to step up their game.

It is evident that Blackberry is vigorously trying to save the company from absolute bankruptcy with the new Passport Phone, but they may not see evidence of profit until at least 2016.

Passport Phone- www.express.co.uk

There are many reasons why Blackberry is in decline. The most prominent reason being that in the amount of time it takes to develop a new Blackberry smartphone, 3 new iPhones have already been released. Second to that, Blackberry lies within the Focus Strategy (differentiation) on Porter’s Generic Strategies rubric, whereas Apple lies within Differentiation Strategy. Apple’s target market is much broader than that of Blackberry, seeing as how Blackberry only targets government officials and business folk. While differentiation may be the one thing that saves Blackberry from extinction, a narrow market may be the thing that kills it.

Now, on to some jargon that is oh so known by economists: Opportunity Cost. It will take all the profit that Blackberry previously made in its years of success to compensate for the lack of profit being made currently. In other words, the opportunity cost of possible profit from new models (including the Passport Phone) is all the savings the company has. Is it even worth it? What if, in the end, Blackberry still doesn’t make money? Then the company leaves with nothing but shame and a rolling tumbleweed.

What will be left of Blackberry if they fail- lessonslearntlastnight.wordpress.com

While the risk that the company is taking is high, I applaud them for not giving up. Good luck against Apple, old friend.

Link: http://www.economist.com/news/business-and-finance/21620699-blackberrys-promised-comeback-has-not-yet-materialised-not-there-yet

Embedded Links: https://blogs.ubc.ca/yanfeiyang/2014/09/15/innovation-in-fashion-e-commerce-your-personal-stylist-online/, https://blogs.ubc.ca/kamabek/2014/09/23/online-business-e-commerce-advantages/

Online Shopping – http://zarrtech.net

I found these two blog posts on PulsePress, written by my fellow commerce students, and felt the need to comment. Not only do I personally relate to the addictive obsession of online shopping, but also found that these posts directly linked back to the in-class discussion we had today with Professor Nagarajan.

Online shopping falls under a Direct Business Model. Many retail companies have adopted this mean of selling product due to its endless advantages. Customer relationships drastically increase without the hassle of middle men (such as retail stores). This method is beneficial for both consumer and producer. Consumers receive a personal, customizable experience without needing to leave the comfort of their own home and producers cut costs on rent (of stores) while being more efficient with their merchandise (days of inventory).

It wouldn’t surprise me if all stores convert to online selling in the near future. Like Kamilla said, it is important to keep a strong connection with your customers. It’s like online dating; gathering information and matching it to the best product. Constantly knowing what demand trends are, and will be, is what sets a strong company apart from others.

Is Tesla truly an environmentally friendly company? One would believe so considering their cars, being all electric, do not pollute our atmosphere. The company has set a high standard for itself as an Eco-friendly, fuel efficient automobile manufacturer. Having produced some of the first battery powered cars, one would assume that Tesla strongly believes in a pollution free world. However, despite successfully eliminating fuel usage in Tesla products, the company does its damage by producing EV batteries used in their vehicles.

Tesla, an all electric car company (source: http://teslachronicles.com/)

Is this considered unethical in the business world? Is it false advertising to portray themselves as an innovative and green company while they manufacture batteries that release up to 40,000 pounds of carbon dioxide each. Tesla’s consumer base is largely of made up of people who care about the environment and want to contribute to a greener world. But how can they do that knowing that another country, such as China, is affected by the greenhouse emissions released by the production of these EV batteries?

Tesla EV battery factories release large amounts of carbon dioxide in China (source: http://business.financialpost.com)

Tesla is not maintaining a sustainable environment and may very well end up as a declining business once the public catches on. If Tesla stresses a belief, such as a pollution free Earth, then they should stay true to it entirely, instead of just the surface of the company.

Links: http://business.financialpost.com/2014/03/14/how-tesla-motors-incs-electric-car-batteries-are-adding-to-chinas-pollution-woes/?__lsa=74a4-596a, http://seekingalpha.com/article/1907761-a-big-threat-that-tesla-investors-shouldnt-ignore