Which Market Segment the New iPhone Will Take

June 9, 2010 1 Comment

iPhone 4GListen to this postApple is introduced the new iPhone which nicknamed 4G and i find it fascinating but I do not think I would buy one soon. I just got my iPad which can do most of the iPhones function but with a better resolution displayed on a larger screen. I find the iPad to be a “Phenomenal device” that keep on amazing me every time I use it. I never used Apple’s products until I bought the iPhone model (3Gs) last year. I was amazed by its simplicity and ease of use. However I found its price to be a challenge especially for the regular users who use their phones as a simple device to communicate. Such users would not need the thousands of applications offered in the iTunes store. Many customers in the Far East and the Middle East need a mobile communication device at the lowest price possible, unfortunately Apple does not offer such mobile phones. Students in India who spend less than Rs. 600 ($13) use their mobile phones for sports updates, playing games and downloading software but spent less on local calling and SMS messaging (Jha, 2008). Mobile phone penetrations in the Far East countries (like Philippines) depend on the lower-income segments. The model for serving high income segment would not work for the low-income segment according to Anderson and Kupp (2008). So the new iPhone might be amazing but do we need that amusement?

References:

Anderson, J., & Kupp, M. (2008). Serving the poor: drivers of business model innovation in mobile. [Article]. Info, 10(1), 5-12. doi: 10.1108/148366908108501 20

Jha, S. (2008). Understanding mobile phone usage pattern among college-goers. [Article]. ICFAI Journal of Services Marketing, 6(1), 51-61.


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Acer SWOT Analysis

June 4, 2010 8 Comments

Listen to this postAcer was founded in 1976 under the name “Multitech” and had a significant role in popularizing the PC use in Taiwan. The Brand name was firmed in 1987 and then Acer switched from technology manufacturer to  world-wide recognized computer brand name.

Strength: Acer has many innovations like the Aspire One laptop that let the user connect to the Net almost anywhere with 8 hours of battery live. Acer presented the Tempo Smartphone series in 2009 to compete in the lucrative mobile phone market.  Acer main factory is located in Taiwan which has low-cost labor and distribution advantage in the US market and Asian market. Acer price its products with low competitive prices to compete with the strong rivals and acquire the low-priced laptop market share.

Weaknesses: the PC, laptop and mobile phone markets are extremely competitive and require frequent innovations to keep up or exceed the customers’ expectations. The laptop customers expect new functions and improved computing power at least once every year. Innovations and changing market demand needs strong and flexible supply chain to execute the successful innovations and deliver them to the market before the competition.

Opportunities: Acer had competed on delivering a reliable PC’s and laptops at a competitive price. Similar market entry model would be useful to enter the eBook Readr market and the iPad© market. Acer would be a good competitor in the eBook Reader market and had the ability to enter a new market of acquire an existing manufacturer. Acer was successful in acquiring Gateway©, emachines and pockard bell (Acer inc., 2010). This success will help Acer to integrate its existing assets or set up new manufacturer to producer eReders or similar products that does iPad functions. Acer can also compete in the Asian market by using its low price model. The Asian market is huge and would consume many of Acer’s products if marketed well.

Threats: the laptop and PC market are extremely competitive. Both products needs management support to invest in the Research and Development departments. Research and development departments would consult between each other to produce new competitive products that can be produced from the current integrated ability for Acer’s subsidiaries. The innovation will continue as long as the workers are compensated and the subsidiaries are willing to compromise for the sake of benefiting the holding company.

To know more on SWOT analysis and how to make one please click here.

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Corporate Social Responsibility (CSR)

May 6, 2010 4 Comments

Listen to this postCorporation’s responsibility to stakeholders representing the concerns of the people, the planet and the profit (Angus-Leppan, Metcalf, & Benn, 2010). Corporate Social Responsibility (CSR) depend on a moral framework that has four moral theories. The first theory is egoism which is the morally correct action that display the corporate social responsibility. The action is done to maximize the shareholder profits but not because of the obligations toward social responsibilities (Frederiksen, 2010). The organization stop the harmful acts and maximize the socially acceptable acts because such acts are in the organizations self-interest. The second theory is libertarianism. This theory state that libertarian believe in avoiding disturbing the negative rights but not doing the positive duties. The libertarian would avoid harming the society or deny the community its basic rights like freedom of speech or freedom of religion (Frederiksen, 2010). The libertarian is not obligated, according to the theory, to help anybody positively.

Utilitarianism theory state that utilitarian organization would always seek the best possible outcome from its actions. The best outcome can be helping a society in another country and not helping the close by society (Frederiksen, 2010). Utilitarian would target maximizing happiness regardless of the place. Common-sense morality theory is somehow in between the egoism and the libertarianism because the common-sense morality theory state that the organization should not violate the societies tights and should he same time act positively towards certain groups of the society (Frederiksen, 2010). Those groups can be the organization’s employees, members of the society or people closely related to the organization.

Lee (2010) state that businessmen are more honest than the preachers because the customer would test the products sold or recommended by the business person. Nobody would be able to come alive again and tell the community about the preachers claims validity. Similarly, the organizations cannot mislead the society in claiming that their products are not as advertised, they would be easily spotted while violating their claims.

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References:

Angus-Leppan, T., Metcalf, L., & Benn, S. (2010). Leadership styles and CSR practice: an examination of sensemaking, institutional drivers and CSR leadership. [Article]. Journal of Business Ethics, 93(2), 189-213. doi: 10.1007/s10551-009-0221-y

Frederiksen, C. (2010). The relation between policies concerning corporate social responsibility (CSR) and philosophical moral theories – an empirical investigation. [Article]. Journal of Business Ethics, 93(3), 357-371. doi: 10.1007/s10551-009-0226-6

Lee, D. R. (2010). Why businessmen are more honest than preachers, politicians, and professors. Independent Review, 14(3), 435-444. doi: http://www.independent.org/publications/tir/

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Is Marketing Ethical?

May 4, 2010 2 Comments

Listen to this postI think the biggest ethical challenge for marketers would be the fact of capturing the customer’s attention while being ethical. This is a big marketing challenge that most marketers avoid taking. Marketing a product required presenting the benefits and the advantages of the product but sometimes exaggerating these benefits. The customer would equate the products benefits and advantages with the amount of money paid for buying it. Another ethical challenge in marketing and advertisement would be transparency in telling the customers the side effect of the products. The marketers either neglect or fine print the side effect of their products. Sometimes the harmful effect of the products are displayed on the product, such as the cigarettes,  but the marketing campaign is so strong that the customer would go ahead and use the product anyway. Sundaram & Mitra (2007) found that cigarette manufacturers are advertizing in magazines and internet sites with considerable number of young reader. The advertisement in these locations use young models and display smoking as fun activity to attract large segment of the population.

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References:

Sundaram, D. S., & Mitra, K. (2007). Ethical evaluation of marketing practices in tobacco industry. [Article].International Journal of Business Research, 7(2), 194-204.

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Does Music Artists Hate P2P?

April 22, 2010 2 Comments

Listen to this postFile sharing sites are delivering free music to users around the word. Most of the files are shred or downloaded freely. The media got the public to believe that the file sharing sites are negativity affecting the new artists and the recording companies. but, not every recording artist is upset because their music was downloaded without payment. The Peer-to-Peer (P2P) file sharing sites help exposing the new artist to the audience. The audience can search the artist and then download the music illegally to listen to it at their convenience. The file sharing sites are good advertising source that help the new artist to reach to the greatest number of audience. The newly downloaded files are a sampling opportunities for the users to test the music if its meets their taste. Research by Bounie, Bourrreau, and Waelbroeck (2007) showed that 93% of the  P2P users purchased new music after they have sampled it on the downloaded MP3 format. Further, the research also reviled that 67% of the surveyed participant purchased new CDs that they discovered by downloading from the P2P sites. That CDs they would not normally purchased if they did not discover it on the file sharing sites.

References

Bounie, D., Bourrreau, M., & Waelbroeck, P. (2007). Pirates or explorers? Analysis of music consumption in french graduate schools. [Article]. Brussels Economic Review, 50(2), 167-192.

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What Is Your Value Proposition?

April 15, 2010 4 Comments

Listen to this postValue Proposition is a business or marketing statement that summarizes the customers need to buy a product or use a service from an organization. The term “Value proposition” became a buzz word lately and many people started abusing the term for the wrong purpose. Marketing Manager main goal is developing a marketing plan that details how the company would meet its strategic objectives. The plan will show analysis of the cost, benefits and values that the organization would deliver to the stakeholders. The value proposition model explains how the supplier would fulfill the customer’s needs.  The value proposition “specifies the interdependence between the performance attributes of a product or service and the fulfillment of needs” (Kulonda, 2009). The value proposition model would list six steps for the marketing manager to set for his or her goals :

  1. First step is identifying the market in which the organization is going to create value for. The market would include the consumers, environment and the shareholders.
  2. The second step would be listening to the customers and stakeholders to addressing their concerns and requests. The organization should recognize the valuable feedback from the customers. The feedback should be real and confirmed by the organization’s representatives. The organization would not consider exaggerations and political statements that some people would use to draw the media’s attention.
  3. The third step would be describing the services and products offered by organization to the stakeholders. The stakeholders would receive the right information for the organization without distortion.
  4. Fourth step for marketing manager is to list the benefits expected from the organization business. Where and how the benefits would be felt and how it would be materializing.
  5. The marketing manager would address the stakeholder’s concern by discussing the alternatives for their existing business. Show why the organization have chosen certain suppliers, why the supplier is local or offshore. Alternatives are always available for the organization but the marketing manager would explain why the current supply chain and current products are the best business model a company would choose in the current business environment.
  6. Finally, the marketing manage would display the organization’s road map to deliver what it promised to do in the above steps.

The value proposition should talk to the customers needs and should not be another sale presentation the list what the organization is good at.
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References:
Kulonda, D. J. (2009). Manufacturing strategy for high tech start-ups: A reconsideration. [Article]. Issues in Innovation, 3(1), 74-92.

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Pricing Initial Public Offering

April 4, 2010 1 Comment

Listen to this postIf the price of an initial public offering (IPO) is too low then the issuer losses the ability to raise the intended capital. The issuer would like to take advantage of this opportunity to raise capital, but with lower price the investor would take advantage of this low price and resell it for a marginal profit (Smith, 2001). The issuer would only receive capital from the IPO but the marginal profit from under pricing would be lost (or gained by the investor). Investors, especially the informed ones, would not bid for an overpriced IPO simply because they do not profit from it, at least in the near future. As a result the issuer will not raise the intended capital. The best way to set a price for an IPO is to use the services of an underwriter, where the underwriter has the market information and skill to estimate an attractive price for the IPO (Ibbotson & Sindelar, 2001). Experienced underwriter would have a good reputation for setting the right (underpriced) IPO to attract enough investors to raise the intended capital and benefit the investors with marginal profit.

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References

Ibbotson, R., & Sindelar, J. (2001). Initial Public Offerings. In The new corporate finance: where theory meets practice (pp. 309-317). New York: McGraw-Hill Irwin.

Smith, C. (2001). Raising capital: theory and evidence. In The new corporate finance: where theory meets practice (pp. 277-293). New York: McGraw-Hill Irwin.

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Two Thousands and Five Hundreds

March 29, 2010 4 Comments

2500 Indonesia Rupiah Bank Note

Yesterday was Saturday, March 28, 2010 the 87th day of the year which is also Rabia-II  12, 1431 in the Islamic calendar or Nissan 13, 5770 in the Jewish calendar that is the equivalent of  Eryue 13, 4707 of the Chinese lunar calendar. Saturday daytime was 12 hours and 21 minutes long which was enough to reach the 2500 visitors milestone on this blog. The Romans represented 2500 as MMD but the binary representation is 1001110001002. The number 2500 is a perfect square which can be written as 2500 = 142+482 or 302+402. In case you did not understand what is meant by all this then I would like to simplify it for you by saying that 2500 visitors like you had visited this blog since I publicized it in January 3 , 2010. Thank you for re-visiting.

The most visited posts and pages since the start of this blog are listed below. To my surprise, three out of the five top visited places are special pages where I post researches and case studies. I always thought that readers are interested in the posts, but apparently most of you are intellectual readers who wants to sharpen their knowledge.

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The Results of Wrong Relationship Marketing

March 25, 2010 10 Comments

RakazListen to this postReligious and patriotic campaigns are getting more intense and popular in the last few years in Kuwait. The campaigns are trying to reach the young generation in the age of 16-26 and those with modernized thinking and western influence. Most of the advertisement and billboards that display the campaigns massages are showing young men wearing western outfit (T-shirts and pans) while the Deshdash (traditional men outfit)  is never used in these messages. The western outfit may be used intentionally to relate to the targeted group but at the same time wrong message might be delivered. Showing the young generation in non-traditional outfit encourage them to abandon the traditional principles which is directly connected with religion and patriotism.

I have done an extensive research on the wrong relationship marketing done by Coca-Cola in India and would like to share the research with you. The researched case might not be similar to the above subject but would present the consequences of building the wrong relationship. Please click here to read the full research.

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Self Development Programs are Like Ice Cream

March 11, 2010 5 Comments

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Robin Sharma and Me

Robin Sharma and Me

Yesterday I attended a nice full day workshop by the best-selling author Mr. Robin Sharma. His most popular book is “The Monk Who Sold His Ferrari“. I enjoyed the workshop but there is a variety of self-development books which I read before made this workshop look similar. Once you read few of these self-development books you will find them repeat the same principles. They are like choosing a flavor at Baskin-Robbins, the color and taste might be different but the basic ingredient is Ice Cream. I distilled the presentation to the following important points:

  • All human are equal and anybody can be an amazing leader.
  • We all have equal opportunities which we should take advantage of before it is too late.
  • We need to set long-term personal targets (10-50 years) and then dissect them into smaller tasks.
  • Work everyday on 1% of the task (or goal). You will accomplish the goal withing the target date without being overloaded.
  • Ice Cream

    Baskin Robins Ice Cream

    Keep on focusing on your goals all the time.

  • Fall in love or be passionate about what you do. Keep your focus on that ultimate goal and neglect other distractions.
  • Do not make yourself a victim. Do not blame other people or circumstances for your failures.
  • Learn from you failures, they are a good opportunity to learn.
  • Do not be afraid of risk. Change will always bring the best in you.

Mr. Robin Sharma has a good presentation style that captivate the audience and has a talent for telling passionate stories that makes the audience want to cry. On my scale I would give Mr. Sharma 7/10 when compared with other motivational speakers.

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