Qwikster was the short lived video by mail section of Netflix. After losing an estimated 1 million customers and plumiting stock prices, Netflix has decided to reverse its plan to divide its video-by-mail and video streaming services.

The class discussion whether it was a good or bad decision to divide Netflix and charge for both services, can now be concluded as bad.

Netflix had successfully positioned itself as number one in consumer minds, created a strong comparative advantage, and connotation around it’s brand name. Netflix was a consumer favourite because of its low cost and easy to use format. It’s comparative advantage lay in Netflix’s positioning in an unoccupied niche, which provided a wide range of videos through two methods of delivery. Netflix’s brand name is distinctive and up until its blunder, a consumer favourite. This new section of the original Netflix required two accounts and charged consumers more. Qwikster was seen as a betrayal and could alter the brands positioning in consumer minds.

Shares of Netfilx rose 10% after the news of its reversal plan, however, they once again turned down. With the decision to kill Qwikster, only time can tell if Netflix can regain its momentum and consumer trust.

Citation:

Burrus, Logan. Goldman, David. CNN Money Tech. October 10,2011. October 10,2011. <http://money.cnn.com/2011/10/10/technology/netflix_qwikster/?iid=SF_T_LN>

Pictures:

http://www.google.com/imgres?q=netflix&um=1&hl=en&client=firefox-a&sa=N&rls=org.mozilla:en-GB:official&biw=1366&bih=575&tbm=isch&tbnid=htECkY4R5bPu4M:&imgrefurl=http://www.fastcompany.com/1726352/netflix-on-competition-from-amazon-hulu-plus-hbo-time-warner&docid=w0EXNbfmEzdxpM&w=620&h=349&ei=yqWUTqiIIKfdiAKb54HzBA&zoom=1&iact=hc&vpx=1026&vpy=293&dur=923&hovh=168&hovw=299&tx=37&ty=90&page=1&tbnh=159&tbnw=204&start=0&ndsp=10&ved=1t:429,r:9,s:0

http://www.google.com/imgres?q=qwikster&um=1&hl=en&client=firefox-a&hs=Va4&sa=N&rls=org.mozilla:en-GB:official&biw=1366&bih=575&tbm=isch&tbnid=o5QcqCXxhG0foM:&imgrefurl=http://bigshinyrobot.com/&docid=5v_Oy4sS3_592M&w=660&h=371&ei=jqaUTt_pOMeuiQKs18SpBQ&zoom=1&iact=rc&dur=355&page=1&tbnh=87&tbnw=155&start=0&ndsp=21&ved=1t:429,r:5,s:0&tx=37&ty=34

RIM acquired NewBay in a $100 million deal on October 6th,2011. NewBay is an Irish software company who creates technology which allows users to share and create digital content through their phones.

In class, almost all of the students clicked in associating BlackBerrys and RIM with BBM. We affiliated RIM with nothing else than the invention of BBM and could not recall any other major milestone or advancement in the company. Research In Motion, has fallen behind in the mobile race and failed to live up to its name. RIM is no longer associated with strong innovation and technological advancement.

I believe RIM’s tactic of purchasing NewBay will allow them to get back in the race. NewBay is an established company who has created software for T-Mobile, ATT, and Verison, with offices around the world in US, UK, Germany, Australia and South Korea. They need to continue in this direction or risk being a one hit wonder with the invention of BBM. The development and application of this new technology could be the company’s leading strategy in its mission to be the leader of the mobile industry.

Citation:

Collins, John. The Irish Times. October 7, 2011. October 9,2011. <http://www.irishtimes.com/newspaper/finance/2011/1007/1224305388261.html>

Pictures:

http://www.google.com/imgres?q=RIM&um=1&hl=en&client=firefox-a&sa=N&rls=org.mozilla:en-GB:official&biw=1366&bih=575&tbm=isch&tbnid=rn-2z4I3f_DkdM:&imgrefurl=http://crackberry.com/rim-purchases-blackpad-com-domain-blackberry-tablet-now-one-step-closer-reality&docid=GWq7wTgH5uB9TM&w=600&h=261&ei=GSGSTuCyBO_WiALUgNXMCA&zoom=1&iact=rc&dur=1829&page=1&tbnh=107&tbnw=246&start=0&ndsp=11&ved=1t:429,r:2,s:0&tx=105&ty=44

http://www.google.com/imgres?q=NEWbay&um=1&hl=en&client=firefox-a&sa=N&rls=org.mozilla:en-GB:official&biw=1366&bih=575&tbm=isch&tbnid=ARwUr6lIXNvhIM:&imgrefurl=http://americas.enterprise-ireland.com/optimus-works-with-newbay-to-launch-mobile-social-networking-service/&docid=eZU9EwC6dOUx2M&w=283&h=142&ei=9SKSTqqGN43PiAKcmv3NCA&zoom=1&iact=rc&dur=801&page=1&tbnh=80&tbnw=160&start=0&ndsp=21&ved=1t:429,r:0,s:0&tx=130&ty=39

The IHS iSuppli Teardown Analysis Service recently revealed that the Amazon Kindle Fire, is selling for $10 more than the cost to produce the device. The cost of materials is $191.65, after manufacturing the total comes to $209.63 and the selling price is $199.99. However, this is exactly what Amazon wants, they plan on competing with the IPad and other tablets by offering the lowest price on the market.

As Liesl Bellack stated the Kindle’s point of difference is its competitive pricing.

However, I think that its very dangerous for Amazon to depend on only its content sales. Much like the Lieber Case, trying to fight off competition by only price will be a bigger hindrance on the company in the long run. The Kindle offers less than half the applications the IPad does, so consumers are rightfully paying only half the price of the IPad. The competitive pricing isn’t a strong enough point of difference for the Kindle Fire to rely on. I don’t think Amazon has created a product that will emerge as a serious threat against the IPad.

Citations:

Slatter, Brennon. PCWorld. Oct 4, 2011. October 5.2011. <http://www.pcworld.com/article/241076/kindle_fire_teardown_pegs_price_at_20963.html>

Picture:

Reardon, Marguerite. CNET News. September 29, 2011. October 5, 2011. <http://www.pcworld.com/article/241076/kindle_fire_teardown_pegs_price_at_20963.html>

Vancouver’s Safe-Injection Site was saved last week from closure by the Supreme Court of Canada. The plaintiff, the federal government, argued its existence goes against criminal drug laws. However, B.C. lawyers won by maintaining its position under the health-care policy and advocating its prevention of  infections and death. Although Insite does allow the use of illegal substances, the Court ruled that it would also be denying users protection for life and security under the Charter of Rights. This has opened doors for the possibility of new sites across Canada, including Montreal.

I agree with the Courts decision to keep Insite open. Being a Vancouverite, I feel safer knowing the streets are cleaned up. Having fewer addicts on the streets also presents Vancouver as more distinguishable city with tourists. I think that other cities, such as Montreal, should adopt this system as well, but only after much consideration of its necessity. Vancouver’s downtown East Side is a very confined area consisting of a very high population of the city’s homeless drug addicts. So the site has produced little evidence that it attracts more drug use. Montreal needs to examine whether they too have such a location.

Insite Vancouver

Citation:

Author Unknown. Montreal Gazette. October4, 2011. October 4, 2011. <http://www.montrealgazette.com/health/Safe+injection+sites+Montreal+Plan+carefully/5501451/story.html>

Pictures:

<http://www.google.com/imgres?q=safe+injection+site+vancouver&um=1&hl=en&client=firefox-a&rls=org.mozilla:en-GB:official&biw=1366&bih=575&tbm=isch&tbnid=GQdCb3wR4NTGrM:&imgrefurl=http://www.myspace.com/marijuanasteve/photos/67028345&docid=8oF01YDuN64wFM&w=600&h=449&ei=SMqLTqeTEcrpsQKfy7G0BA&zoom=1&iact=hc&vpx=831&vpy=161&dur=1457&hovh=194&hovw=260&tx=73&ty=60&page=5&tbnh=169&tbnw=236&start=52&ndsp=10&ved=1t:429,r:3,s:52>

<http://www.google.com/imgres?q=safe+injection+site+vancouver+site&um=1&hl=en&client=firefox-a&rls=org.mozilla:en-GB:official&biw=1366&bih=575&tbm=isch&tbnid=pSFKReHoedp2VM:&imgrefurl=http://indiancountrytodaymedianetwork.com/2011/04/safe-injection-site-saves-first-nation-lives/&docid=uEfNbeZyXerPsM&w=615&h=359&ei=rMiLTt7xFIGqsQL-2KipBA&zoom=1&iact=hc&vpx=215&vpy=174&dur=1045&hovh=124&hovw=213&tx=430&ty=76&page=2&tbnh=124&tbnw=213&start=22&ndsp=10&ved=1t:429,r:1,s:22>