It looks like Apple's biggest supplier is branching out into the TV business with a $1.6 billion dollar investment in the Japanese LCD TV company Sharp. Sharp is currently struggling after it said it's expecting to lsoe $3.48 billion this fiscal year. The Sharp plant though is the most efficient plant at making 60 in. TVs and could be the future leader in smart televisions. People are expecting to see a debut of an iTV by the end of the year.
Television may be a smart move for Apple because it works strongly on the interconnection between its different devices. Everyone also knows that Apple TV is reworking itself to come out bigger and better and having an Apple constructed television would be a nice compliment. Apple is trying to be a constant part of a consumer's day and television would just increase the amount of time that a person can use an Apple product.
The full article can be found at: http://www.businessweek.com/articles/2012-03-28/sharp-investment-makes-sense-if-apple-tv-is-coming
Wednesday
All Bags Fly for Free...Not Exactly
Southwest Airlines focuses its' advertising campaign and it's slogan attacking other airlines for their gratuitous use of fees. A big Southwest motto is that "Bags Fly Free," which is true unless you are flying on their wholly-owned subsidiary, AirTran Airways. Although it's been three years since the purchase, the fees still remain. AirTran still is an independent operation but Southwest is working on incorporating it and making it a part of the Southwest brand. This is a slow process but also bag fees are a strong source of revenue. The issue is that if Southwest Airlines prides itself on no fees but their subsidiary charges fees will this hurt the brand name. The merit to Southwest Airlines motto may be tarnished a little bit but the divide between both companies helps distinguish one from the other. I believe that AirTran will have its best year once it's fully incorporated into Southwest.
Read the full article at: http://www.businessweek.com/articles/2012-03-28/at-southwest-not-all-bags-fly-free
Read the full article at: http://www.businessweek.com/articles/2012-03-28/at-southwest-not-all-bags-fly-free
Feedback Schmeedback
Just because a company asks for your opinon does not necessarily mean that they want to hear it. Many major companies use a "Great Man/Woman" approach with one person making all the major decisions. Some people like Larry Ellison of Oracle makes all the decisions from advertising to product development. Steve Jobs was notorious for this because it was not until later in life that he stared listening to others around him but still, the final decision was up to him. The firms have a type of CEO idolatry which although have had some successes may ultimately lead to their downfall. No matter how knowlegedable and visionary a CEO is, they still may make mistakes about trends in the market or what next move should be made. Business intelligence and knowledge management have made huge strides in the past years but many big companies would rather stick to what they are doing and not listen to those who actually consume and use their product.
A strong exception is Google that basically revolves its' whole money-producing function around what works with customers and what does not. Google makes its money through advertising and it uses feedback to understand what produces the best advertising. Facebook, on the other hand, uses advertising for revenue but is struggling against Google because it can not produce the same amount of revenue. This may be due to strategy or some factor but definitely, feedback and business intelligence plays a role. Customers are how an operation survives so listening to them and their needs is the only way to adapt, change, and thrive.
Read the full article at: http://www.businessweek.com/articles/2012-03-26/analyze-this-tech-companies-dont-use-their-own-products
A strong exception is Google that basically revolves its' whole money-producing function around what works with customers and what does not. Google makes its money through advertising and it uses feedback to understand what produces the best advertising. Facebook, on the other hand, uses advertising for revenue but is struggling against Google because it can not produce the same amount of revenue. This may be due to strategy or some factor but definitely, feedback and business intelligence plays a role. Customers are how an operation survives so listening to them and their needs is the only way to adapt, change, and thrive.
Read the full article at: http://www.businessweek.com/articles/2012-03-26/analyze-this-tech-companies-dont-use-their-own-products
German Amazon?...Well, Not Exactly
Amazon is having competition in southeast Asian markets but from itself? The Samwer brothers, who are known for copying American businesses and launching copycat versions have just released a copy on Amazon.com. Lazada.com, their new website, copies the layour and even color scheme of Amazon. They are targeting southeast Asian countries that have not been locked up by Amazon yet. So far the brothers have made over a $1 billion dollars by copying sites like Ebay, Pinterest, etc. Their effectiveness comes out of a well-funded "clone factory." This however brings up the question that if websites can be successfully copied and can become popular in smaller markets, what's to prevent their reach into larger albeit still international markets?
Copyright laws will protect these copycats from competing with their original American versions but overseas, especially in countries with more relaxed copyright laws, these sites may thrive. It's a delicate balance the Samwer brothers must manage but it does show that copycat websites can be successful and that brand name does not mean the same thing all over the world.
The full article can be found at: http://www.businessweek.com/articles/2012-03-22/german-copycats-clone-amazon-dot-com
Copyright laws will protect these copycats from competing with their original American versions but overseas, especially in countries with more relaxed copyright laws, these sites may thrive. It's a delicate balance the Samwer brothers must manage but it does show that copycat websites can be successful and that brand name does not mean the same thing all over the world.
The full article can be found at: http://www.businessweek.com/articles/2012-03-22/german-copycats-clone-amazon-dot-com
Order Up! Japanese Is On The Menu
Investors have been dumping millions into Japanese farms and fish ponds as the world's appetite for Japanese products increases. Food investors have already invested at least $281 million. "Food is the one area that has a big investment potential,” says Mori, 44, president of Dogan Investments in Fukuoka City. Twenty-five regional banks have increased their lending to farmers who want to export their products abroad. Banks are giving low lending rates because they believe that the taste for Japanese delicacies will only expand and they will make back what they lend and more from these farms.
Wagyu beef and black swine are also two other major livestock that have been growing exponentially and customers have been scouting out these markets. Owners of these farms have essentially changed from farmers to securities salesmen because of the growth in these industries. This can serve as a great boost for the Japanese economy who has had lending decrease over the past 2 years. The world's tastes are expanding and Japan is enjoying the boom it gets from these new globalized consumers.
The full article can be found at: http://www.businessweek.com/articles/2012-03-15/funds-hope-to-cash-in-on-japanese-cuisine
Wagyu beef and black swine are also two other major livestock that have been growing exponentially and customers have been scouting out these markets. Owners of these farms have essentially changed from farmers to securities salesmen because of the growth in these industries. This can serve as a great boost for the Japanese economy who has had lending decrease over the past 2 years. The world's tastes are expanding and Japan is enjoying the boom it gets from these new globalized consumers.
The full article can be found at: http://www.businessweek.com/articles/2012-03-15/funds-hope-to-cash-in-on-japanese-cuisine
Tuesday
Will Apple Need Carriers Anymore?
It appears that Apple is currently looking for telphone software engineers to work on iOS. Many people are very excited about this because Apple is looking to add voice-over-IP (VoIP) capabilities to its iPhone and iPad operating system. This is doubly exciting because it could potentially mean that it may drop its' carriers and launch its own voice service. On the other hand, it could mean that they want to work even closer with its partners because VoIP is the next generation in voice services. Apple neds experts to develop SIP-based clients to communicate with carriers' IMS cores.
Apple will most likely not go into the the VoIP business for many of the same reasons that Google is not getting into the business. This technology will probably go into a cross-device VoIP set-up that allows customers to trade phone calls among iPhones, iPads, and Macs. This communication could range from phone calls to videoconferencing to instant message. Carriers will never be able to limit Apple's ingenuity and this initiative, if it is successful, may make Apple products even more popular then they are now.
The full article can be found at: http://www.businessweek.com/articles/2012-03-23/is-apple-planning-its-own-mobile-voice-service
Apple will most likely not go into the the VoIP business for many of the same reasons that Google is not getting into the business. This technology will probably go into a cross-device VoIP set-up that allows customers to trade phone calls among iPhones, iPads, and Macs. This communication could range from phone calls to videoconferencing to instant message. Carriers will never be able to limit Apple's ingenuity and this initiative, if it is successful, may make Apple products even more popular then they are now.
The full article can be found at: http://www.businessweek.com/articles/2012-03-23/is-apple-planning-its-own-mobile-voice-service
Sunday
Extra! Extra! Want to buy a Daily Variety?
The Web once again shows it's strength and how if you can't update then you can't stay in the game. Daily Variety, Hollywood's 107 year old industry trade publication has been put up for sale. This comes after the trade newspaper has been losing out to its' competitors Deadline, the Wrap, and its' traditional competitor, the Hollywood Reporter. The Reporter had a relaunch in 2012 where it put daily news on its website and released a weekly magazine.
Daily Variety is still known around the world and this valuable asset makes it a "trophy brand," according to Ken Sonenclar, managing director at DeSilva & Phillips investment banking. The sale praice will probably be around $50 million but to survive the newspaper will not only have to get better managment but also revamp itself. Variety was one of the first newspapers to block its Web content to non-paying subscribers. Its' competitors, however, post much of the same news for free online. Daily Variety needs to be taken into the digital world. People can get the same news and the same information for free in an instant. They need to figure out what makes them different and how they can market that to customers.
The full article can be found at: http://www.latimes.com/business/ct-variety-sale-20120324,0,7980325.story
Daily Variety is still known around the world and this valuable asset makes it a "trophy brand," according to Ken Sonenclar, managing director at DeSilva & Phillips investment banking. The sale praice will probably be around $50 million but to survive the newspaper will not only have to get better managment but also revamp itself. Variety was one of the first newspapers to block its Web content to non-paying subscribers. Its' competitors, however, post much of the same news for free online. Daily Variety needs to be taken into the digital world. People can get the same news and the same information for free in an instant. They need to figure out what makes them different and how they can market that to customers.
The full article can be found at: http://www.latimes.com/business/ct-variety-sale-20120324,0,7980325.story
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