Qi mentioned that Amazon would stop selling Apple TV and Google Chromecast recently because these devices could not work with Prime Video, Amazon’s in-house streaming video service. Qi also cited opinions of an analyst at Edison Investment Research who disagreed with the approach of Amazon. However, Qi personally agreed with the action of Amazon, for she was convinced that the new approach of Amazon could prevent its competitors from making benefits, and would make Amazon more competitive.[1]

Nevertheless, I doubt the viewpoint of Qi. I think the new approach can neither benefit Amazon nor weaken its competitors. On the opposite, I feel that the new approach may even decrease the sales volume of Amazon. Amazon is just a platform that buyers and sellers can trade online. Although Amazon develops and sells its own products, such as Prime Video and fire phone, which did not achieve success in sales in the long run. Ironically, Amazon gains a lot of benefits from the rent paid by those sellers who sell Apple TV and Google Chromecast every year. Furthermore, many customers may dissatisfy with the Amazon’s new approach. As a consequence, both Amazon service quality and its customer quantity will go down.

Therefore, I strongly disagree with the approach of Amazon, and suggest that Amazon should allow various kinds of goods be sold on its websites.

http://www.talkandroid.com/213676-amazon-prime-instant-video-might-finally-come-to-android-devices/

Reference:

1. https://blogs.ubc.ca/taylordingqi/2015/10/04/competition-strategy-amazon-stop-selling-apple-tv-and-google-chromecast/

Marvin cited a lot of statistics about car sales. The data in this blog illustrated the importance that Tesla should develop automobile products for female drivers. Marvin also described how Tesla managed to design the New Model X SUV for them, which indicated that Tesla was a company who really cared about customer segments. After that, Marvin applied the theory ‘customer segment’, which is one of the building blocks of the business model canvas to explain how Tesla has made a sound choice.[1]

However, I think Marvin’s arguments in this blog are not comprehensive and persuasive. Marvin should accomplish the business model canvas of the New Model X SUV and explain how each building block of the business model canvas works. Hence, the reasons why Marvin believes that Tesla has done a fantastic job can be more scientific. In addition, Marvin should also apply Porter’s differentiation strategy [2] to illuminate why the theory of ‘customer segment’ is a significant building block of the business model canvas. Porter’s generic strategy [2] is a world famous strategy and has been employed by many enterprises in the world, although different companies may prefer different types of business model canvas.

Marvin spent much time and effort on collecting statistics about recent car sales and explained the rationality that Tesla should develop the New Model X SUV, but failed to integrate with persuasive explanations. Overall, it is an interesting blog with interesting data.

http://www.businessinsider.com/we-drove-teslas-new-model-x-suv-2015-9

Reference

1. https://blogs.ubc.ca/meharbanbains/2015/10/04/teslas-new-model-x-suv-targets-women/
2. Porter, M. E. (1980). Competitive Strategy: Techniques for Analyzing Industries and C New York: Free Press.

http://www.businesskorea.co.kr/english/news/ict/7500-xiaomi%E2%80%99s-challenges-xiaomi-mount-serious-challenge-samsung-apple-100000-won-tablet

Xiaomi is the 4^th largest smartphone maker in the world, which is also the first electronic company who has made achievements through online sales. By adopting the disruptive innovation idea (Clayton M. Christensen), Xiaomi has been developing its markets rapidly since it pushed out its first smartphone in 2011.

In the past, smartphone companies, such as Nokia and Motorola, had their products sold traditionally in electronic specialty stores. Though Google tried to sell its first smartphone Nexus One on internet in 2010, due to quality problems, it suffered great losses. Nevertheless, Xiaomi introduced its first smartphone with features of cheap price and high quality on internet and achieved huge success. According to Clayton, a disruptive innovation is an innovation that creates a new market and value network and eventually disrupts an existing market and value network, displacing established market leaders and alliances [1]. In this case, Xiaomi created a new market by offering online sale services, and has become one of the largest smartphone companies in the world.

However, I personally doubt the sustainability of current Xiaomi’s business mode. With the development of network marketing, more and more smartphone companies have copied the business mode of Xiaomi, starting selling their products on the internet with even lower prices and more functions. Consequently, Xiaomi has lost its advantages because its marketing strategy has been applied by many other smartphone companies. Besides, Xiaomi does not produce hardware itself, hence, it cannot launch revolutionary new products independently.

To conclude, although disruptive innovation brings a company benefits at the beginning, the disruptive innovated idea may be referred and utilized by other companies quickly. In my opinion, only sustaining innovation ensures constancy of a company.

Reference

1. Christensen, C. M. (1997). The Innovator’s Dilemma. Harvard Business Review Press

http://www.centives.net/S/2013/the-economics-of-zara/

Amancio Ortega, who transformed clothing group Inditex from a tiny family dressmaker into a Spain’s biggest company, briefly overtook Bill Gates on Friday to become the world’s richest man [1]. As one of the brands under Inditex, ZARA is the largest international apparel retailer, and its marketing strategies are very successful.

The first marketing strategy of ZARA is direct sales mode. Zara controls most of the stages on the chain supplying, designing, manufacturing, and distributing its products [2].

Another marketing strategy of ZARA is focus-cost strategy [3]. ZARA positions its goods as high-end products with low price.

The third marketing strategy of ZARA is positioning strategy [4]. ZARA introduces its products to the markets by using the brand of ZARA “made in Europe”. Many customers in developing countries believe that the goods made in Europe are high-end products. However, ZARA sells its products with a low price, which can easily attract the customers from the developing countries.

Successful implement of the above marketing strategies turns ZARA into the world’s largest apparel retailer. I would suggest that garment producers should use the case of ZARA as a reference for their marketing consideration. ZARA’s story interprets the successful application of marketing strategies by considering the direct sales, focus-cost and product and customer positioning strategies.

Reference

1. http://www.cbc.ca/news/business/amancia-ortega-bill-gates-richest-1.3285976
2. http://edition.cnn.com/BUSINESS/programs/yourbusiness/stories2001/zara/
3. Porter, M. E. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: Free Press.
4. Ries, A. & Trout, J. (2001) Positioning: The Battle for Your Mind. New York

Blackberry pushed out a new smartphone called Passport in 2014. However, the sales volume of Passport was not satisfactory.  The design of Blackberry Passport was based on the form of an actual passport. The gentle shape of the back cover is comfortable for user to hold in hand[1].The focused customer segment of Passport is the professional people who need to make important decisions with various occupations such as business men, pilots, doctors and designers. Besides, the theme of the Blackberry Passport is ‘work wide’.

According to Porter’s (1980) generic strategies, the focus strategy concentrates on a narrow segment and, within that segment, attempts to achieve either a cost advantage or differentiation [2],which suggests that Blackberry should specifically focus its customer segment on a certain profession (e.g. company managers) instead of vague focus on those people who need to make crucial decisions. Worse still, the Blackberry Passport is neither cheap nor convenient, comparing with other smartphones, such as iPhone 6 and Samsung galaxy s6.

Although Blackberry used to be the largest smart phone manufacturer in the world, the company has made mistakes about customer segment positioning in recent years. I think Blackberry should not develop new products that cater different consumers, but should produce products that are specialized for the people in a certain working area with specific functions. I also propose that Blackberry should exploit the markets in developing countries like China, Brazil and India and their market needs.

Reference:

1. http://ca.blackberry.com/smartphones/blackberry-passport/overview.html
2. Porter, M. E. (1980). Competitive Strategy: Techniques for Analyzing Industries and C New York: Free Press.

The Chinese government has published a series of policies that support the development of tourism in China. As one of the projects, Shanghai Disneyland Theme Park is being constructed. This is a business model canvas for Shanghai Disneyland to demonstrate its relative features.

This business model canvas illustrates both internal and external opportunities and strength of Shanghai Disneyland, as well as the prospect of the vacationland. On one hand, Shanghai Disneyland Theme Park has lots of reliable business methods to promise its business futures, such as investors, business partners, and strategies for sales. On the other hand, due to the improvement of Chinese economic situation and people’s living standards, more and more Chinese families seek for the theme parks for spending their public holidays, which suggests that the Shanghai Disneyland Theme Park will become an ideal resort for them, which is another promise for Shanghai Disney’s business future.
However, the culture gaps between China and America are quite apparent, and how American culture mergers with Chinese local culture concerning business operation and management are essential for the success of Disney’s business in China, yet Hong Kong Disney has already experienced lots of obstructs and hinders.
To summarize, the Shanghai Disneyland project will bring outstanding visible and invisible profits for both Shanghai government, investors and stakeholders, and its future values are tremendous.

Background:

Tens of thousands of refugees from Syria, Iraq and Afghanistan have arrived in Europe, which has stirred sharp disagreement among European Union countries on how to “process” and accommodate them [1]. As a result, European countries may face challenges of resources supply, particularly the economic pressures.

Consideration:

Initially, the refugees’ pouring into Europe may lead to high unemployment. An overwhelming majority of refugees need to get jobs to feed their family members. However, owing to their poor education, most refugees may have trouble finding proper occupations in advanced European nations, which may even bring about social problems.

Secondly, the refugee migration may get European countries’ governments into financial difficulties. Because most of the European countries provide social welfare for their people and migrants, the government will have to spend more money on social services as more and more refugees enter Europe countries.

Last but not least, refugee flows in Europe may have negative effects on original inhabitants. Owing to the increase of population, the prices of daily supplies will inflate. Consequently, the living standard of people in Europe will decrease.

Personal opinion:

Although receiving refugees from Syria, Iraq, Afghanistan and elsewhere contributes to increase of labor quantity in advanced Europe, which benefits the long-term economic development of these countries on one side, and contributes to the rise of political reputation of a nation, such as providing humanitarian aid to refugees one the other side. Yet I hold my view that, instead of arguing about the ratio distribution to European countries, the European Union is supposed to take necessary steps to consider and resolve the immediate series problems caused by refugee migration, such as acceptance of refugees, refugee shelter construction and even assist the resolution of the political disputes and war issues in Syria, Iraq and Afghanistan.

rrReference:[1]R Reference: Charbonneau, L. (2015 September 27RRrRRRR

Referencehttp://www.reuters.com/article/2015/09/27/us-un-assembly-refugees-idUSKCN0RQ0RJ20150927

Background:

In order to achieve the criteria of Environment Protection Agency (EPA), Volkswagen cheated in the emissions tests in USA by installing ‘defeat devices’ during the period of 2008 and 2015, until Volkswagen’s behaviors were exposed recently.

As a result, Volkswagen is not only facing massive pecuniary loss such as billions in fine and stocks fell, but has also sullied the reputation of ‘German made’. According to EPA, Volkswagen might face civil fines of up to $18 billion for violations of the U.S. Clean Air Act [1]. Besides, the automaker’s stock has lost more than 30 percent of its value since the EPA firstly alleged Volkswagen’s cheating behavior [1]. What’s more, the chief executive of Volkswagen Martin Winterkorn resigned due to the scandal.

Personal opinion:

From my point of view, an enterprise should obey local laws, rules, stipulations, social norms, and keep up with high standard business integrity in its production and operation, meanwhile, each enterprise must have social responsibilities, such as environmental protection and equal competition. Nevertheless, I have to admit that the cheating behavior of Volkswagen really disappoints both customers and environmentalists, and Volkswagen deserves all the possible fines and negative consequences. At last, action talks more. I do hope the high executives and management staff of Volkswagen must consider and take real measures to resolve the engine problems of their products instead of delivering endless and useless apologies.

Reference:

1. http://http://www.dianliwenmi.com/postimg_2582317.htmlhttp://ktla.com/2015/09/26/volkswagen-facing-billions-in-fines-lawsuits-from-vehicle-owners-shareholders-dealers/

[1]

After having finished reading the article of Milton Friedman (The Social Responsibility of Business is to Increase Profits) and watching the talk that explains stakeholder theory made by R. Edward Freeman, I lost in deep thought. I strongly agree with Friedman that corporate executive’s using the wealth of the company to contribute the society is a kind of violation to the Shareholders of the company. I also intensively subscribe with Freeman that if you just focus on financiers you miss what makes capitalism tick. The truth is that shareholders financiers, customers, suppliers, employers and communities can together create something that no one of them can create alone[2]. On one hand, I think stakeholder theory may add up social responsibilities, social liability and political responsibilities to enterprises, which may even become burdens of companies and their operations. On the other hand, I think that company managers should focus on their professions, business and create more benefits for shareholders to perfect the stakeholder theory.

Here is a link that helps us understand stakeholder theory better: https://mosaicprojects.wordpress.com/2014/07/11/understanding-stakeholder-theory/

[1]https://en.wikipedia.org/wiki/Stakeholder_theory

[2] Friedman, M.(1970 September 13). The New York Time magazine. Retrieved from September 15, 2015 from http://site.ebrary.com/lib/ubc/reader.action?docID=10187339&ppg=171

I have also read two different com101 classmates’ blogs:

https://blogs.ubc.ca/bacland/

https://blogs.ubc.ca/mariaacosta/