Archive for October, 2011

Oct 09 2011

And the Games Begin….

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(http://upload. wikimedia. org/ wikipedia/ en/3/3a/ Vancouver_ Canucks_ logo.svg)

Hockey season is starting again!

However, the Canucks’ journey in the 2011 Stanley Cup games is still quite fresh in Vancouverites’ minds.

Remember how quickly the merchandises updated to include “Western Champions” and “Stanley Cups Finals?” The prices of the merchandises varied drastically as the series progressed. Everything was cheaper after a defeat but prices went up immediately after a winning game.

The production and selling of these merchandises demonstrate some elements of segmentation.

The target audience were fans for the team and fans of “the hype.” The sport fans dedicated enough to update their team-themed accessories would like to show off the Canuck’s highest (and newest) title. The fans who continually joined the hype over the course of the series would probably choose the newest merchandise to stay with the hype.

After a losing game, less people would be inclined to become fans and sellers slash prices to clear the inventory. Orders on thousands of “Canucks Stanley Cup 2011 Champions” souvenirs were cancelled because there was simply no demand for them.

This new season will start a new series of business tactics for these merchandisers.  I think it will be an interesting case to study.

 

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Oct 09 2011

Apple and Jobs

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Business needs technology. BTM, for example, is an entire management science based on application of technology (i.e. through computers) in business.

We learned this all in class the day before Steve Jobs passed away.

http://upload.wikimedia.org/wikipedia/en/6/67/Steve_Jobs_Headshot_2010.JPG

He created the first generation of microcomputers, and made them cheap and accessible to not only banks, governments, and research universities, but individual businesses and programmers. He is a big part of the reason why “computer” is mostly synonymous to “technology” nowadays.

Then again, Jobs seems to be very good at doing that. Think of Apple products: the Mac, iPods, iPhone, iPad, and how they are all synonymous with “cool.” They are the paradigm of successful product differentiation and positioning.

Think of the MP3 players that tried to resemble the iPod, the touchscreen smartphones, the tablets released after the iPad debuted, and how PCs are leaning toward the Mac’s sleek and shiny design. Apple products are powerful presences in the market despite its high price.

And don’t forget how mobile apps, popularized by the iPhone, became a new channel for conducting business. It changed internal management, transaction and financial procedures, marketing, advertising, franchasing, and so much more.

And that was just the last decade. Jobs also founded Pixar.

The bottom line is,  Steve Jobs was truly brilliant. He revolutionized technology and business repeatedly.

His commencement speech at Stanford in 2005 (see below) is one of his most famous moments. Give it a listen if you haven’t already: Steve Jobs\’ 2005 Stanford Commencement Address

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Oct 08 2011

A Pricey Ride

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Metro Vancouver mayors voted in support of a Translink expansion plan this Friday, which approves:

  • upgrade of Translink services — cost: $ 70 million per year for ten years
  • Evergreen Line — $1.4 billion cost gap not covered by federal and provincial funds

http://www.evergreenline.gov.bc.ca/route_and_stations.htm

A few thoughts:

I wonder if time value of money is factored in when these numbers were calculated. Is the $70 million annual referring to $70 million in that amount in that year, or an amount equivalent to $70 million today in that future year? How much will the interest on the $1.4 billion for the Evergreen Line end up costing the province?

These projects tend to go over-budget and overtime. Looking back now, I wonder if time value of money is part of the cause. Media reports rarely clarify these numbers.

Even a few percent of differences will leave a staggering sum over the ten years of this project, considering the principal amount. This vote on Friday already approved for increasing property taxes and gas taxes to fund these projects.  However, taxpayers will probably be footing a bill much larger than the one they are seeing now.

Reference Article: http://www.vancouversun.com/business/Metro+Vancouver+mayors+vote+raise+property+taxes/5520074/story.html

 

 

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Oct 01 2011

Not-so-Smart Move?

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http://upload.wikimedia.org/wikipedia/commons/d/d7/Android_robot.svg

In the young and bustling smartphone business, Google’s Android operating system is currently the strongest competitor to Apple’s iPhonesOS. Last month, Google announced that it intends to acquire Motorola – it will now dabble with hardware as well as software development.

Google’s, a software producer’s, move to the hardware market made it a competitor to its partner hardware producers for the Android system.  Three days ago, Microsoft and Samsung Electronics reached an agreement which allows the two companies to share their patent portfolios. Samsung is the second-largest smartphone producer behind Apple and is also the developer of the Nexus S, the official Google phone.

From the current state, Google’s decision to acquire Motorola does not look like smart move on its part. While the financial details of the agreement are not released, the deal is more significant as a demonstration of an alliance and partnership. Microsoft is a powerful software company and wants to enter the smartphone market, and now one of Google’s most powerful partners is signing a deal that could give Microsoft the chance. The agreement presents Google with two very obvious threats: losing market share to Microsoft and losing the relationship with its hardware producer partners.

Reference news article: http://www.usatoday.com/tech/news/story/2011-09-28/microsoft-samsung-smartphone-partnership/50589412/1

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