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Monthly Archives: October 2014

In an attempt to make a smaller amount of loss, Sony is considering reconstruct it’s business strategy. In the past few years, Sony keeps trying to become the world’s third largest smartphone maker in the market. But it ended up making huge losses. So what’s wrong with Sony’s phones?

The smartphone market is now dominated by Samsung and Apple. Apple builds up a unique brand image which helps it gain a lot of loyal customers. And when people have the brand loyalty, it would be difficult to change their preference and taste.

Also, Sony is somehow too eager to gain more market share. It launches dozens of phone models each year with very similar functions, whereas Apple only launches 2 models each year, but they are highly differentiated.

Therefore, Sony is now reconsidering its business strategy and changing its main focus to image sensor and game consoles. Now Sony’s Play Station 4 trounced Xbox One of Microsoft Corp. It is a great opportunity for Sony, as game market is highly profitable, it would generate huge amount of profit for the company. If Sony can grab this chance and dominate in this market, it will help Sony with its brand image. But at the same time, it requires Sony to spend huge amount of money on developing new games.

Sources: http://www.brantfordexpositor.ca/2014/10/31/leaner-sony-gains-smartphone-lift-despite-its-own-mobile-malaise

US military has recently been hugely affected by global warming. It’s day- to- day military training and activities are troubled by flood, and electricity shortage, they are now spending huge amount of money on detecting the potential environmental threats and making changes to the previous training method.

 

For US military to maintain a sustainable development, it would be better if it adapts triple bottom line framework. It takes into account 3 performances: social, environmental, and economic. Sustainability will only be achieved when all three performances are beyond expectations. But now, global warming is bringing in a lot of troubles and it has severe impact on military’s budgeting decisions.

 

The problem can never be solved by only reallocate the bases, cut down on outdoor training exercises or adapt to hotter temperature. It would probably help in the short run, but in the long run, all kinds of new problems will keep occurring, the only way to solve it is to reduce global warming effect and maintain a sustainable growth. It is not only the government’s responsibility. Military can help by having less gas waste or pollution.

Sources: http://www.theguardian.com/environment/2014/oct/13/pentagon-global-warming-will-change-how-us-military-trains-and-goes-to-war

The massive hydroelectric project recently started by the government is strongly opposed by First Nation. According to the federal-provincial panel, the project will benefit the growing demand for electricity and can also generate clean hydroelectric for oil, gas and mining industries. As the panel said “B.C. will need new energy and new capacity at some point”. This project is beneficial to everyone in Canada and it will also help Canadian economy.

However, the external costs caused by it should also be evaluated, especially when there’s already some conflicts between B.C government and First Nation. The dam will destroy the farmland, flood the valley and destroy their fishing industry. It would be bad for the government’s reputation and people’s opposition may cause the project to halt. At that time, it will cause even more problems and conflicts.

Therefore, it would be better if the government reevaluate the costs and benefits of the project and probably make some modification to the existing design, for example, decrease the farmland using. The chiefs of First Nation said they will support smaller projects which have less adverse effect to their normal life.

 

When starting to develop a new product, companies usually begin by dividing the market into different segments, and then make business decisions accordingly. However, customers don’t make purchasing decisions base on their segments, instead, they purchase things to satisfy the unfulfilled needs.

HBS professor Clayton Christensen proposed a concept called “job-to-be-done”. It states that rather than categorize the products and customers, companies should focuson planning what does customers want the products to do for them.

This concept works effectively to a restaurant which wants to improve its milkshakes sales. The reason why customers buy milkshake is not obvious. They are not hungry, they just want something to deal with the boring morning commute. The company found it out
by doing survey, and therefore, it modify the milkshake a little to meet the customers demand.

However, for a newly launched product, it is very difficult for the company to gather information about the job needs to be done by the products, as the data now existing are all organized in the way of segmentation, and everyone is fixating on this way. The real question here is: who is going to be the one to break the mold? It’s a lot harder to collect data like that and there is no existing data available. It is a decision that the companies need to make for the further success.

 

On September 24th, 2014, Blackberry launched it’s new smart phone “passport“. It combines the touching screen and its featured keyboard together. It is targeting at business people but the price is much more affordable than the new Iphone6.

Blackberry was once very popular in America, it is secure, easy to send and receive emails, and most importantly, its unique keyboard. However, as Apple and Samsung are launching more cellphones with touching screens, Blackberry starts to become obsolete. People nowadays prefer to smartphones like Iphone since it has lots of fancy functions, and more apps than old business phones.

The launching of “Passport” means a lot for Blackberry. It tried to adapt to the latest trend without giving up its unique selling point. It provides business people with a more professional smart phone.

However, according to customers’ reports, this new combination is not that ideal. Its squared touching screen seems to be the right size for reading articles and emails, but it is pretty hard to watch videos on it. And it’s keyboard is somehow too small for typing.

In general, “Passport” is just the start for Blackberry to enter smart phone market. After reviewing feedbacks from customers, it can hopefully develop a more widely accepted phone to compete with Apple and Samsung.

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