(The source: http://www.tealeafnation.com/2013/10/chinas-silly-war-on-starbucks-lattes/)

Background Information:

There are many worse things in the world than an overpriced latte, but China Central Television (CCTV), a state-owned media behemoth ran an Oct. 20 segment accusing the Seattle-based company of overcharging Chinese consumers.

Influence of this Incident: Nothing

The graph shown below is the stock of Starbucks.

One day after the accusing, on October 21st, the stock of Starbucks increased to ＄79.46.

The reason why Starbucks can get through this crisis so easily.

To start with, CCTV grossly underestimated Chinese people’s ability to distinguish real injustice from the manufactured variety. Compared with house, gasoline and healthcare insurance, coffee is not that particularly important. What CCTV really wanted to do is to let the public focus on coffee instead of the problems which are more urgent.

Moreover, the reasonable explanations made by CEO of Starbucks helped a lot. The CEO of Starbucks paid enough attention to this incident, and he made that explanation just one day later. He persuaded the consumers to accept the price by rational analysis, although the price is actually really high.

Finally, I think it is because of its brand. As a world-wide famous brand, it cannot be affected by any medias easily even it is a state-owned media behemoth.

The Success of League of Legends

(Source:http://venturebeat.com/2013/07/27/comparing-mobas-dota-2-vs-league-of-legends-vs-heroes-of-newerth/)According to the data published by Riot Games, compared its competitor IceFrog (4.8 million), the number of the whole active monthly users of League of Legends has reached 32 million.

        League of Legends is an online free-to-play game which is very similar to DOTA. But DOTA is created in 2005. LOL was released on October 27, 2009. How can LOL control the market so quickly? Why are LOL and Riot Games so successful?

        First of all, Riot Games spent a lot of time and money on advertisement. Source:(http://www.gamespot.com/news/league-of-legends-season-3-world-championships-to-be-held-at-staples-center-6411299)The corporation has already hold three lol tournaments in 2013, and the championship’s winning team can get 1 million dollar. Apart from this 1 million the world championship prize pool is expected to bring the total sum of League of Legends prize money for Season 3 to over $8 million globally which has definitely attracted a lot of people.

        Moreover, the decision on its consumer segment is very rational and very wise. This game is easy-to-play. Even pupils can learn to play this game very quickly. What’s more, the way this company makes money is very acceptable supported by micro-transactions. This game is free to play, and the users can decide whether they buy the products or not. The company does not force them to pay, which makes the relationship between the consumers and the company more close.

There are also many reasons. But the two reasons above are the most important.