Wechat vs. Facebook

Facebook,as everyone knows,is an online social networking service.However,survey has shown that the number of teenagers claiming to be active on Facebook had dropped to 56% in the third quarter of 2013,from 76% in the first.(http://www.forbes.com/sites/parmyolson/2013/11/12/heres-where-teens-are-going-instead-of-facebook/)

I agree with David’s opinion about the reason for Facebook decline(https://blogs.ubc.ca/zhangatan/2013/11/13/move-aside-facebook/).Basically it is because people are looking for application that allow for quick and easy access.From the survey,the rivals that took away Facebook’s customers is applications that provide quick communication method.

As a new Wechat user,I think what make wechat successful and popular is its voice messaging.It is super convenient and useful because I don’t need to take much time to text but just talk .Also,receivers can get to know your mood from your voice.This is a kind of communication method have the characteristic between phone call and text message.It targets mainly at teenagers,and their service completely cater to teens’ needs for fast,private and convenient communication.

The development of Wechat do have some impact on Facebook,but obviously their value proposition are different. Wechat users usually have already known each other in real life,but Facebook may focus more on knowing new friends and group talking.Clearly,as long as this two maintain their own characteristics,they can co-exist.

HP:a struggling giant

Once being the symbolic founder of Silicon Valley,and  the world’s largest PC vendor by unit sales in 2012,HP are now struggling because of it ineffective merger.

From statistics,HP merged 88 companies in the past 11 years,spent more than 66.9 billion dollars(http://h30261.www3.hp.com/phoenix.zhtml?c=71087&p=irol-mergers).However,these mergers did not make HP better.By contrast,HP suffered a lot from merging companies with different cultures and fields.Especially after its merger with Autonomy in 2012,its stock fell to decade’s low.

Obviously, HP is suffering from the lost of culture and direction.They tried to expand into different fields but through a inorganic way,which caused great culture conflict.From the blog linked here,(http://blogs.hbr.org/2008/05/will-hp-and-eds-clash-over-cul-1/)There is a clear example when HP merged with EDS.From the auther’s word,EDS mainly relied on individual talent.However,HP’s culture encourage people to work in group.Because of this,HP and EDS employees encountered huge disagreement.Similar situation happened almost every time when HP merged a new company

HP are always changing their direction.For instance,they merged Palm to develop smart phone,but quit it almost right after the merger.They merged so many companies that do well in different fields,becoming a “giant”.But this “giant”is struggling because they don’t have clear customer segment and key activities.

MUJI:A “no-brand” brand

Muji is a Japanese retail company which sells a wide variety of household and consumer goods.One thing that differs Muji from other retail company is that they don’t have any logo on their products and the packaging is extremely simple-displaying only functional product information and a price tag.Like their value proposition and brand positioning, Muji has successfully give a impression of being ” minimalist “and  high quality.

Also,the no-brand strategy means its products are attractive to customers who prefer unbranded products for aesthetic reasons, and because it provides an alternative to traditional branded products.(http://en.wikipedia.org/wiki/Muji)

Instead of giving priority to brand or additional marketing elements, they focus in purpose and performance of the products(http://wedreambusiness.org/MUJI.html).They reduce the cost by select their material and minimize packaging.This policy not only enable them to keep a relatively low price,but also take CSR (corporation social responsibility).They are contributing to the environment by reducing the packaging waste.Additionally, they are encouraging people to focus on the basic function of the product rather than those showy packages.

I would regard Muji as a sustainable company since it meet the requirement that is good for environment and society,also make profit.

references

http://en.wikipedia.org/wiki/Corporate_social_responsibility

Lecture slides#15

Ikea:what makes it different?

Ikea is a Swedish company that designs and sells ready-to-assemble furniture (such as beds, chairs, and desks ), appliances, and home accessories.As of October 2011, IKEA owns and operates 332 stores in 38 countries(http://en.wikipedia.org/wiki/IKEA).What makes Ikea so successful?

PoP: selling furniture and appliances.return policy

PoD: large range of product,low price,high quality and distinguished design,good customer service.

Ikea try to establish a brand image that represent gentle,Swedish-style,environmental friendly furniture.Their good design do attract many people.

Unlike normal retail store,Ikea is a one-way design,encouraging customer to see all their product without feeling confused about the way.The whole store is well-designed and feel like a large furnished house,which can easily stimulate customers to buy all the furniture they need in Ikea because they look good together.

One important thing that differs Ikea from other furniture company is their great customer service.In Ikea,every store includes a restaurant serving inexpensive traditional Swedish food.Also,they provide”Picking and delivery service””Home delivery””Assembly”Even they charge extra fee for these,but not all.This makes shopping a lot easier, helping Ikea gain large number of customers.(http://www.ikea.com/ms/en_US/customer_service/ikea_services/ikea_services.html)

Ikea does really well in value proposition and customer relationships,making it unique and successful.

Google-the importance of culture

Recently,Google have been named the “best workplace” in Canada(http://www.google.com/about/jobs/lifeatgoogle/best-place-to-work-canada-2012.html)Actually,this is the fourth time that it takes the Best Companies crown.(http://money.cnn.com/magazines/fortune/best-companies/2013/snapshots/1.html)

The reason why it is so attractive is not only because of its amazing perks but also its great organizational culture.In Google’s culture,diversity and inclusion are emphasized.In addition to celebrations like Black History Month , LGBT Pride , Hispanic Heritage Month , and Veteran’s Day,they also have celebrations and traditions for Googlers(http://www.google.com/diversity/culture.html),which make employees from different culture feel warm and a sense of belongings.This is believed to increase employees loyalty,resulting in a low turnover.

Also, Google maintain a casual and democratic atmosphere,which can been seen from their wall colors and the decoration of their buildings.Team are made up of members with equal authority(http://suite101.com/a/google-the-worlds-most-successful-corporate-culture-a242303).So it is kind of like a decentralize company where everyone communicate much and work with enthusiasm and happiness.Obviously,employees are more productive and creative when they feel valued and respected.

I think what Google is doing is “to treat your employees like your customers”.So,employees can serve better for both the customers and the firm and bring more profit.

The Crazy Singles’ Day

11.11 is said to be the festival for singles in China since the number 1 looks like a single person.This day became a shopping festival five years ago when many online shop offered bargain on this day.From statistics,the first six minutes pf transaction topped $160 million,setting a new record.(//www.benzinga.com/news/13/11/4068900/chinas-11-11-online-shopping-festival-sets-new-records)Alibaba introduced that their sales in 11.11 finally reached 35 billion yuan,increasing by 83% compared with the sales last year.

Honestly,people spend more money if they have a right excuse and the situation where all the people around are shopping because they feel less guilty.For sellers,this is a great tactics to create a environment where people are willing to spend money.Though e-commerce sites like Alibaba,Tmall and Taobao provide huge discount,those single bargain hunters are not the only ones that take advantage of this deal.Actually,Alibaba processed $3.1 billion in transactions last year(data from the link above).

Basically,this is more than a successful tactics for all the online shop owners and online shopping sites,but a win-win situation for both the sellers and the consumers.Also I think it is a good example for advertising,since they understand their customers and know how to make them happy to spend their money.