Monthly Archives: October 2015

Starbucks: More convenient??? YES! (comment#1)

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Starbucks Canada will introduce a mobile payment system that allows customers to order their coffee in advance on app to some of its Toronto stores next week. This action will save the valuable time in lineups since consumers can select what they want and pay for it on the app and pick up their order just after the pick up times.

I read Phyllis blog and in a sort of way agree with her opinions. She argues that this action will save time on lineups, however, people may still need to line up to pick their coffee. Also, too many orders online may lead to chaos in the stores. I agree with these ideas but came up with some different views. I think the most convenient thing is that people can pay for their coffee on their cellphones instead of paying at the checkout counter in stores. Moreover, this app will benefit both for consumers that order in stores and consumers that order online. For people buying their coffer in stores, since others are purchasing online, there will be a shorter line therefore saving their time. Also, for people buying online, they can come and pick up their coffee at the exact time the coffee is done which means no more waiting.

Overall, this action benefits consumers and is a nice expansion of services. I believe this move will successfully boost the sales of Starbucks. Nice move!

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What is behind the spectacular fall of Blackberry?

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Blackberry, a company had $20 billion in revenue and controlled half of the smartphone market, now has less than one percent in the cellphone market. Jim Balsillie and Mike Lazaridis started this business and they engineered a pioneering pocket email device which made blackberry popular than ever among CEOs and presidents. However, after Apple and Google entered into the market, everything changed.

I made a SWOT analysis for Blackberry.

STRENGTH

1.Extremely secure telephones at that time.

2.Focuses on specific consumer groups—governments and corporates.

WEAKNESS

1.Failure in marketing because of poor promoting endeavors.

2.Highly dependent on government and corporate contracts. (main consumers)

3.Absence in the tablet market. BlackBerry’s Playbook tablet was a failure move.

OPPORTUNITIES

1.Growth of tablet and cellphone markets.

THREAT

1.Rapid technology changes, high investment in research and development to ensure survival.

2.Fierce competition, mainly from iOS and Android devices.

3.Involvement in legal issue.

losing the signal can be said as one of the key reasons of why blackberry fell. It did not see the coming threats from Apple and failed to adjust its products to fit the environment. It dismissed the need to do anything about the situation in the short term. Unlike Blackberry, Google realized that the world would change so it scrapped its keyboard plans. Blackberry aims at efficiency, security and all the other things that matters for businessmen. However, market demand tends to prefer cellphones with fun and beautiful design which are completely different from Blackberry’s core idea. Also, people now are used to touchscreen phones instead of keyboard phones. Blackberry would be eliminated from the competitive market since it failed to do any technological improvements or changes.

This story tells us the importance of knowing the external influences on business (threat and opportunity. Businesses need this information to make decisions about how to change its product or services to survive in the market. Blackberry failed because of losing the signal.  

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http://bits.blogs.nytimes.com/2015/05/24/behind-the-downfall-at-blackberry/?ref=topics

http://shop.blackberry.com/store/bbrryus/en_CA/

Apple’s new plan: Peer-to-Peer Payment Service

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As a super fan of Apple, I always keep my eyes on what’s new about apps and iPhone. Recently, I found that Apple is working on a person-to-person payments service in order to attract more people to use the Apple Wallet. Honestly, I never use my Apple Wallet before because I am concern about the safety issue of it. What if my card information is leaked? Can hackers break into my account and use my credit card?

Generally, this Peer-to-peer payment service is about to let people use their cellphones to send money to one another as easily as they send messages. Apple is now consulting with banks and this service will be ready next year. Apple is aiming for bigger slice of the payment industry and “replacing the wallet” so its biggest competitor is PayPal’s payment app—Venmo.

Apple Pay has just started from 2014 and it still has a long way to go to achieve its aims. Data shows that, as for December, there is less than 17 percent of iPhone 6 and 6s users were using Apple Pay, according to data from the research groups PYMNTS.com and InfoScout. Certainly, Apply wants to foster consumer loyalty by this peer-to-peer service. However, I don’t think it is a good move.

The competition in payment service is quite intense. This year, China’s most popular messaging app Wechat offered a payment service that its users can send payments to their friends so did Facebook Messenger. Google also experiments payments in its messaging service. Furthermore, banks are trying to create peer-to-peer payment products in their own mobile apps called clearXchange. (covers about 80 percent of all of the banks.) There is hardly any market leaves for Apple. Moreover, for now, few of these efforts earn money for the business since consumers are free to use Venmo and are charged only a small fee when using a credit card. For now, I don’t believe Apple Wallet will stand out among a bunch of competitors even with peer-to-peer payment service.Screen Shot 2015-11-18 at 9.25.19 PM

http://www.nytimes.com/2015/11/12/technology/apple-plans-peer-to-peer-payment-service.html?ref=topics

Whole food’s about-face

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Recently, I read a piece of news that the grocery chain Whole foods said it would stop selling goods made by prison labor this week due to the protest of using inmate labor in Houston, Texas.

Whole Foods has benefited from inmate labor since 2011 but now it just changed its standpoint completely because some consumers feel uncomfortable. It concerns more about how to keep their consumers’ loyalty than to “help people get back on their feet and eventually become contributing members of society.” It values its profit much more than the community. I totally agree with Michael Allen, a prison reform advocate who planned the Houston protest, once said “Whole Foods is hypocritical because it says it cares about the community, but what it really cares about is profits.” Whole Foods may choose the prison labor program in 2011 in the beginning only because the program would reduce its variable cost.

Companies can get enormous benefits by hiring prison labor. The workers get cheap labor rate even lower than the minimum wage. Also, they are considered easier to control and company can avoid to provide them with health insurance or sick day. Companies could even receive a tax credit for hiring ‘ high target groups’.

In my opinion, to start a business in a community, one should not only concern about the business profit but also concerns about the community as a whole, try to make some contributions to the community. Whole Foods is such a success business and hiring some inmate labor won’t hurt but the inmate workers can learn new skills and start a new life because of this. I can only say that is the different business ethics between people. Hope those inmate labor can find new chance and do well in the future.

 

http://magazine.good.is/articles/whole-foods-prison-labor

http://www.bbc.com/news/business-34408636

https://www.facebook.com/endmassincarceration.houston

http://www.wholefoodsmarket.com/company-info