Netflix: Hitting it Out of the Park

Netflix

Blog post “Is Netflix Playing A TV Game of Moneyball?” on Forbes compares Netflix to the concept raised in the movie, Moneyball. An interesting comparison, but one that seems seemingly fitting. With Netflix’s latest acquisition of AMC’s The Killing, the network has yet again bought another series with a fan following that only stands to increase by becoming a Netflix exclusive show.

The concept of moneyball as described in the blog is “to hire baseball players cost effectively in order to build a roster”; however, instead of athletes, Netflix buys the rights to canceled tv shows while airing the network’s own productions. This double programming method is not only cost effective but brings in fans of the revived shows and also those interested its original shows such as House of Cards. Netflix’s smart roster building is proven through the company’s Q3 revenue and growing domestic and international subscriptions.

The company’s growth shows that not only is it building a game winning roster, it is indeed playing tv moneyball as Netflix is on the road to securing first place by beating HBO in subscribers.

http://www.businessinsider.com/netflix-q3-earnings-2013-10

Image from: https://netflix.hs.llnwd.net/e1/us/layout/ecweb/home/lifestyle_1600_mock.jpg

Bye Bye Blackberry?

Blackberry

In response to classmate Jiejie Zhao‘s post questioning Blackberry’s future, the glory days of the once industry leading telecommunications company is far behind as Blackberry has had to cut jobs, undergo change in CEO and the back and forth of acquisition offers.

Formerly known as Research in Motion (RIM), the company’s plan to sale itself is similar to its popularity, a thing of the past. In Jiejie’s post she writes that the reason for Blackberry falling behind is it failed to match its competitors, Apple and Samsung’s technology, but another reason for Blackberry’s downfall is that the company has lost the trust of its corporate and government market. Blackberry’s future is bleak as recently, both Pfizer and the U.S. Department of Defense have started telling its Blackberry users to make the switch, indicating that Blackberry’s era has truly come to an end unless newly appointed interim CEO can find a way to breath life back into the company.

Although the the company has announced that it will focus on the corporate and government market, the question remains: Can they regain what they have lost or is it too late?

http://www.theglobeandmail.com/report-on-business/in-smartphone-world-its-a-two-horse-race-as-blackberry-falls-further-behind/article15451349/

http://news.investors.com/technology-click/111513-679452-blackberry-could-be-sold-for-parts-analyst-says.htm

Image from: http://wpmedia.business.financialpost.com/2013/11/bb-devices.jpg

Short-term Pictures, Long-term Staying Power

Snapchat Interface

Snapchat recently turned down a $3 billion acquisition offer from Facebook. Some investors also value the startup at $4 billion. Lucasfilm or Marvel were both sold to Disney at $4 billion. Think about that….

Why is this company given such a high value? Instagram, a similar photo sharing app had its value slumped down to $715 million. So what makes Snapchat special? Well Snapchat is a mobile video and photo sharing social media app. One special quality about the app is that the “snaps” or pictures are temporary. They only exist for a few seconds and then they are deleted. When looked at the two apps in the long run, Snapchat will be more durable because of this trait. In this digital age, erasable media is very attracting. Especially with the growing fear that nothing on the internet can be deleted, this app has attracted many customers and is still growing on a daily basis.

Thus Snapchat has bought “more users into the picture” and are keeping them there which makes them 4 times the value of Instagram.

http://mashable.com/2013/11/14/snapchat-worth

Image from: http://i2.cdn.turner.com/money/dam/assets/131021092119-snapchat-valuation-620xa.jpg

It’s Time for Tim’s

Timbits RingetteThink coffee and doughnuts and chances are you will think of Tim Hortons if you are Canadian. What you may not know about the franchise is their emphasis on making a nationwide difference. Tim Hortons’ social value is created through the franchise’s involvement in children’s foundations and local programs. Their Timbits Minor Sports Program in particular is one that has made a lasting impression on me. Having been fortunate enough to experience from both the players and the coaches side the offerings of the program. Growing up, ringette was my sport of choice, and even though our jerseys did not have the Tim Hortons’ logo on them back then, post-game doughnuts from Timmies’ were common occurrences.

For children age four to eight, the program encourages the live active lifestyle without the competitiveness factor for players of hockey, soccer, lacrosse, t-ball, baseball or ringette. Meanwhile providing bonding opportunities for the whole family.

For coaches, the program provides leadership experiences and occasionally goodies from Tim’s.

For Tim Hortons, the franchise is advertised through the logos on players’ jerseys, jamboree events, and mentions on each association’s webpage.

http://www.timhortons.com/ca/en/difference/local-programs.html

Image from: http://bnwr.ca/gallery/709/1289495123/timbits_ringettte_logo.jpg

A&F: Shrinking Sales Lead to Upping Sizes

A&F Ad

In response to Avani Karadkhedkar‘s question “Can A&F survive this situation which majorly threatens their brand?” concerning CEO Mike Jeffries’ comment on A&F clothing being only suitable for cool kids. The answer to the question posed is no.

The prestige from A&F apparel has worn off in recent years, and as consumer trend move away from preppy logo advertising, A&F falls behind and becomes the company that couldn’t keep up. While A&F’s competitors are already selling plus sized clothing, A&F has held off entering the plus sized market for years. However, in a move that has perhaps come years too late as indicated by their falling sells, A&F has announced that upcoming changes include the extension of clothing sizes and the addition of more designs.

Their attempt to regain customers by selling plus sized clothing shows that A&F is trying to reposition the brand, but brand image aside, price is still a factor that will keep customers at bay. Especially in a market where spending power has weakened amongst A&F’s target market: teens and young adults. Price should be another area A&F considers making changes to or sales will continue to drop.

http://online.wsj.com/news/articles/SB10001424052702303936904579180281026324364

http://nypost.com/2013/11/06/abercrombie-to-offer-larger-sizes-after-fat-controversy/

Image from: http://www.neontommy.com/sites/default/files/users/user1166/Abercrombie%20and%20Fitch%20Ad.jpg

Pandas for Trade

Baby Pandas
In the era of globalization, international trading has become a norm. Take China for example, the nation that once employed closed-door policies, has become one of the world’s largest exporter and importer in recent years.

One of the answer to how China has been able to secure its free trade agreements or resources and technology is… Pandas. Home to the bamboo eating bears, China has loaned out 50 pandas for deals ranging from salmon supply from Scotland to uranium export from Canada, France, and Australia. What started out as a way for China to build up capital in the 80s, has evolved into a relationship building act between nations.

The act of loaning pandas in exchange for goods is made possible due to the limited supply and high demand of pandas. As sole supplier, China is a monopolist that chooses what it wants in exchange for their national treasure. Despite social value being created through the loaning agreements in the forms of conservation funds for the pandas, research opportunities, the question of whether or not this is fair trade still remains. Is China getting the better deal out of these agreements?

http://www.ibtimes.com/china-trading-pandas-uranium-power-nuclear-reactors-1426392

http://www.care2.com/causes/zoos-get-pandas-china-gets-uranium-is-this-a-fair-trade.html

https://www.cia.gov/library/publications/the-world-factbook/geos/ch.html

Image from: http://s1.ibtimes.com/sites/www.ibtimes.com/files/styles/v2_article_large/public/2013/10/15/panda-cubs.jpg

New Strategies for E-commerce

Best Buy

Leading the electronic commerce industry is Amazon, an American brand that boosts sales from e-books to home appliances. Amazon attracts and retains customers through its easy to navigate website that offers low priced products. An added incentive is the Super Saver Shipping program which offers free shipping for eligible orders $25 or more. In the e-book department, the newly launched Kindle Matchbook program will allow customers who have bought paperbacks new from them to purchase an electronic copy for free or below $2.99.

On top of Best Buy’s Lowest Price Guarantee policy, Best Buy recently followed suit in the ‘ship from store’ trend, a move that aims to counter online competition from Amazon. Other retailers that have already done so includes Target, Nordstorm, Macy’s, and Gap. Ship from store allows customers to order online, but rather than receiving their goods from a warehouse, the goods will be shipped from a nearby participating location. Ship from store is more cost efficient as it decreases delivery expenses and reduces inventory.

As companies continue to combine e-commerce and ship from store, each brand would be required to develop compelling points of difference to outshine their competitors and find a way for consumers to open wallets.

http://www.usatoday.com/story/tech/2013/09/28/retailers-ship-from-store/2862405/

Image from: 1380232001000-AP-Earns-Best-Buy.jpg

Purple Packaging is Fair Game

Cadbury Chocolate Bar

In a trademark case concerning color, Pantone 2685C to be exact, U.K. Court of Appeal has ruled in favor of Swiss food company, Nestlé over British confectionery company, Cadbury. Legal dispute between Nestlé and Cadbury over the purple trademark have been ongoing since 2008. The latest ruling comes after judges determine Cadbury’s trademark application lacked clarity. Thus making Pantone 2685C and other shades of purple an packaging option for other chocolate manufacturers.

Using Al Ries and Jack Trout’s explanation of positioning, while Pantone 2685C is not exclusive to Cadbury, Cadbury holds a competitive edge in the chocolate market having been first to adopt the colour on its wrappers. Should any company decide to add or change their packaging colours, they would need to implement a strong campaign to overtake Cadbury’s current market. As consumers will continue to associate purple wrapping with Cadbury since it has been a part of the brand’s image longer.

While Nesté has commented that the company does not plan on incorporating Pantone 2685C into its packaging, this five-year long legal battle raises the questions, what does Nestlé stand to gain from spending its resource on a trademark that does not affect them from a marketing perspective?

http://www.bloomberg.com/news/2013-10-04/cadbury-s-purple-reign-ended-by-u-k-court-in-nestle-appeal.html

http://www.theguardian.com/business/2013/oct/04/cadbury-dairy-milk-purple-trademark-blocked

Image from: http://www.bloomberg.com/image/i.In.ziJlREs.jpg

Apple: High Rank, High Performance

iPhone 5S Silver

With the publication of global brand consultancy, Interbrand’s Best Global Brands 2013 report, Apple has overtaken Coca-Cola’s 13-year long reign as #1 global brand. Interbrand, bases its rankings on analyses of financial performances, role of brand in purchasing behavior, and brand strength. Since Apple’s debut of #36 in 2000, Apple’s brand value has increased nearly 15 times the amount of its initial value to USD $98.3 billion. The demand for Apple products is on the rise as the company continues to incorporate high performance and sleek designs into their devices.

Unlike smartphone counterpart, Blackberry, Apple has been able to accurately forecast trends and consumer needs. In the case of the recently released iPhone 5S and iPhone 5C, a record breaking 9 million units were sold during the first weekend. Apple has responded to market demands of cheaper phones by offering the 5C at a lower price, while upholding the brand’s point of difference in luxury with the 5S.

Despite the Foxconn criticisms, patent trials, and the guilty verdict of e-book price fixing, Apple’s brand strength remains strong as proven by the increase of USD $21.748 billion in brand value. However, Apple should evaluate where they stand in the market in comparison to their competitors using Porter’s five forces.

http://www.financialpost.com/markets/news/Interbrand+Releases+14th+Annual+Best+Global+Brands+Report/8975185/story.html

Image from: http://graphics8.nytimes.com/images/2013/09/17/technology/personaltech/17pogue-iphones/17pogue-iphones-blog480.jpg

The Backlashes of Controversial Tweeting

Telecommunication company, AT&T, posted and later deleted a photo with the message “Never Forget” on Twitter on the afternoon of September 11th. The photo showed a hand holding a smartphone with the twin towers of lights on its screen and New York skyline in the backdrop. The tweet generated many responses regarding the insensitivity of the subject. As a result, AT&T posted on Twitter an apology to explain their intentions of the “Never Forget” post.

In this case, AT&T’s use of product advertisement violates virtue ethics. As twelve years after the tragedy of 9/11, many still mourn for their lost loved ones. Should the company wish to pay their respect, they can express so either through donating to 9/11 associations or through publications that do not involve the marketing of their products and services.

In my opinion, businesses and individuals should be more respectful and mindful of what they publicize because once damages incur, public views of the brand or person will change. There should be no profit nor inappropriate remarks made off of tragedies.

Stakeholders involved:

  • Families affected by 9/11
  • Customers
  • Online and offline communities
  • AT&T (employees and board of directors)
  • Twitter (by affiliation)

http://www.theglobeandmail.com/report-on-business/industry-news/marketing/att-its-still-too-soon-for-a-911-themed-ad/article14248783/

http://money.cnn.com/2013/09/11/technology/social/att-9-11-tweet/

Image from: http://beta.images.theglobeandmail.com/10e/report-on-business/industry-news/marketing/article14248782.ece/ALTERNATES/w620/jpg-ATT-tweet