Monthly Archives: September 2014

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