customer expectation

How to forecast $43.6 billion?

Posted on by spr1313anasir

Apple has finally decided to give its shareholders back more now from the profit of $145 Billion. The shareholders demanded more return even though Apple posted their first decline in decades. Apple heavily relies on new product launches to make the mass amount of money; knowing this fact the company has decided to not launch any new products until fall and 2014. The company has to give the raging market a rest for a couple of months before they come out with something that will make the crowd go wild. The fall in the revenue has challenged the company to think of something truly innovative that will gain a higher popularity in sales than its competitors.

 The company did better than forecasted $39.2 billion; the actual revenue was $43.6 billion, exceeding the forecast by $4.4 billion. Apple had under forecasted due to past months revenue being over forecasted. As we learned in class, companies usually use naïve approach to forecast for their next month. Apple has been over forecasting since their iPhone sale success. Apple is not coming out with new innovative technology, their revenue has been declining therefore forcing the company to under forecast their revenue. This is the error of using forecasting because the company might not sell the same as the previous month because the company has not been able to come out with a product that would stabilize their revenue. In Apple’s case new product launches raise their revenue and place them on top of other companies.

 Many people are thinking that since Apple is not going to be launching any new products for a few months, the market is bound to fall. Samsung has been giving Apple good competition and now has been able to take over the market with recent launches. If Apple waits until fall to hit the market again with something innovative, will Samsung have taken over the market? Will Apple be able to compete with Samsung after staying out of the market for a couple of months? Only time will tell how innovative the new Apple products will be. Will the Apple products be able to beat the Google Glasses? Many people are not really sold on the new idea of using glasses as their cellphone but again no one can really tell how the market will react to products until they are launched. Before Steve Jobs died, he mentioned that his new invention was to make the TV remote user friendly. He emphasized that the remote was too complicated with so many buttons. This might be just the product to beat the Google Glasses or not. We all will have to wait for the next invention until fall of this year to find out.

Click here to read the article: http://trib.in/14El4B3

Sources: Gupta, Poornima. “Apple unlocks more cash for investors as profit slides.” Chicago Tribune 23 April 2013, Web. 28 Apr. 2013.

<http://www.chicagotribune.com/business/sns-rt-us-apple-resultsbre93m1b6-20130423,0,5337176.story?page=1>.

NEXTflix Problem

Posted on by @nne322

Netflix is taking a bold move after spending over two years recovering their losses from their last big controversial pricing and programming change. The Netflix CEO Reed Hastings is doing everything possible to avoid another Qwikster disaster.

Since their lose of nearly 800,000 users and 75% of it’s value, Netflix has worked it’s way back to the top with over 29.1 million members, surpassing enterprises like HBO. [1] However, Netflix could not have done this without turning back the focus to their users wants and needs.

Netflix has done a great deal to reinvent their service, pricing and licensing deals. Recently, Netflix has utilized Facebook to create a Netflix Social , where users can link their facebook and Netflix account and view tabs of “what your friends are watching” or “friends favorite”. [2] Netflix also just made a deal with Dreamworks to begin producing another Children’s original animation series. [3]  Furthermore, Netflix’s production and release of 15 new episodes of the popular show Arrested Development  has also received a lot of praise by Netflix users..[4]

Despite their growth and efforts to reconstruct their service, Netflix has run into a new growing problem.

Their current problem is that over 10 million users are not paying for the streaming service Netflix’s CEO is trying to be very cautious about handling the shared user and password issue. Hastings does not want to lose or ban viewers, but instead he wants to keep people positive and excited about Netflix’s service.[5]

Analysts insist that Netflix’s profit would exponentially increase if Hasting’s cracked down on the issue. One analyst believes they could be making up to 5% more per subscriber if they fix their current pricing or offer different plans for users.[6]

Instead, Netflix’s CEO is celebrating the idea “that people love the service”. [7]

The new plan that will be unveiled will allow four streams for $11.99, while the current pricing of $7.99 for two streams per account will still be available. They expect less than 1% of customers to opt for the new plan, but they hope as their service becomes in bigger demand that users will begin to see the value.[8]

Other plans consist of adding a $3 increase for added users , adding extra fees for children programming or limiting the number of devices that can be attached to the account. [9]

Netflix users are vulnerable  since the last price and policy change, so Hastings needs to remain very sensitive to the issue in order to sustain their level of expansion and growth in the market. Therefore, Hastings is not interested in making any drastic changes, but slowly implementing different plans with added benefits.

 

Whether you are a current Netflix user or considering a subscription to Netflix, what plan or price increasewould drive you away? What added benefits or licensing deals would make you keep your subscription?

 

Be GREEN, or be SQUARE!

Posted on by suhanip301s12

More and more customers now are looking for companies to be transparent, but it’s kind of hard to be competitive and sustainable at the same time.  Companies are now using value chain processes to get the job done fast.  They are not only focusing on suppliers but also taking into account By-Product-Synergy, which is “taking waste from one part of the production process and using that waste in order to generate a new product.” But how can companies become more sustainable if only “80 percent of management uses just 20% of the available opportunities?!”  The remaining 80 percent is where management needs to focus the rest of their energy.

It’s crucial for management to set goals and assess their risks, thereafter they can easily seek out opportunities for future improvement.  The first step to become a transparent company is to implement a sustainability program, and of course to develop a strategy.  The next step is to identify the companies “main processes and map data throughout the value chain.”  By using life-cycle-assessment software, the companies will have a more clear idea of how to lower their costs.

A similar approach was taken by ThyssenKrupp (FWB: TKA), a German elevator company.  Since ThyssenKrupp uses a considerable amount of steel in the manufacturing process, they thought the operational aspect had the greatest environmental impact. To their surprise,  the “company’s elevators themselves left a greater carbon footprint then their manufacture or any of the company’s other operations.”

As a result, ThyssenKrupp dramatically changed their product line after implementing a sustainability program.  They made the following changes to their products and services:

  • Elevators use LED lights which reduce energy consumption by 80%, and automatic fan and light shutoff which reduces CO2 emissions by 193,000 tons per year.
  • Getting rid of harmful chemicals used to manufacture the elevator.
  • Using petroleum based biodegradable fluid, with a vegetable-based option called “enviromax.”
  • Elevators are equipped with regenerative technology, meaning that the energy generated from the braking system is put back into the building.

In a way the article gives motivation to other companies who are taking their first steps towards becoming a transparent company.  It gives them few ideas and pointers on “unlocking supply-chain opportunities.” It’s important for different industries to decipher various ways to be more environmental friendly.  After all, there is more to being sustainable than just showing off your environmental initiatives.

Do you think ThyssenKrupp can take additional measures to make their company more sustainable?  Or better yet, are there any companies that you want to see become transparent in the near future? How would they need to change there operations?

Links:

http://www.thyssenkruppelevator.com/Sustainability/products-services

http://www.greenbiz.com/blog/2013/04/26/whirlpool-thyssenkrupp-supply-chain-transparency?page=0%2C1

https://opsmgt.edublogs.org/2012/06/28/transforming-waste-into-profit/

 

Will HTC survive?

Posted on by spr1332umoroz

HTC has been a leading competitor in the smartphone market for years. Recently, their revenues plummeted by 98% compared to last year. HTC claims this is due to the high competition from the market, especially Apple and Samsung. With the decline in revenues, it is only natural that their stock prices fell as well. HTC is struggling to keep up with Apple’s iphones and Samsung’s Galaxy models. HTC was supposed to release the HTC One smartphone in March, but they dropped the ball on that plan due to no revenues coming in and still having their fixed costs. In an attempt to hang on in the market, they recently announced a collaboration with Facebook for the feature of Facebook Home.

In class we had discussions that just because prices of stocks went down, does not necessarily mean that the quality of their product went down. The problem with the smartphone, and technology, in that matter, is that everything is fast-moving and changes are always taking place quickly. I have an HTC Thunderbolt smartphone, and there were extremely high hopes for it. It was a great phone until software started getting updated, such as different apps, but HTC Thunderbolt did not come out with a new update for the phone. Apple has a software update very often. Samsung has come out with the Galaxy and Galaxy 2 during the time that loyal HTC customers have been waiting for the update.

Part of the reason for HTC’s struggle is because they cannot keep up with the quick pace of change. That is one of the main complaints of customers.  This is why benchmarking is crucial. HTC does not need to come up with a new update every week, but they should try to improve their products so that they could keep up with app updates. I waited two years for my update. Before I received it, basic apps such as GMAIL, were not running properly on my phone because the app was no longer compatible with my phone’s software. My phone was essentially outdated. What did I decide to do? I am switching over to Apple and getting an iphone. Many customers have lost faith in HTC because they are taking their time with launching new products and updates.

A decline in revenues means that HTC’s products are not selling. In even a simpler way of putting it, customers are not interested. HTC is in big trouble if more customers start moving away from them and looking into Samsung or Apple products. HTC’s collaboration with Facebook is also up in the air because Facebook Home has not been fully tested out with customers. Currently, it will be an optional feature for your phone, but whether customers will want it is unknown. Before making this a permanent feature on the market, Facebook and HTC should run surveys to see if customers are even interested in something like this.

Do you think that HTC will survive in this constantly changing market? Is the collaboration with Facebook a good idea or a desperate measure to stay competitive in the market?

http://blogs.wsj.com/digits/2013/04/08/for-htc-its-still-a-tough-road/

 

Saving Minutes With Facebook

Posted on by spr1312jlin

Facebook has come out with a messenger app that allows free voice calling for iPhone users. How convenient would that be?! Instead of using our minutes, we could get free minutes! That is like a dream come true, right? There are positives and negatives about this app as well. Because this is a new app, it is understandable that there might be a few glitches, like almost every new product out there.

Some positives about this new free calling messenger app is:

1. This app does not need to be updated in order to be used.

2. You save your minutes! It is really helpful if you just happened to use all of your minutes, or your family used them up for you if you have a family plan.

3. You can get free calling in a tap of a button. There will be a circled “I” icon in the conversation that the user is in. The user can press that button and tap free call to have this free messenger app call the person.

4. You can leave voice messages.

5. This is like a regular messenger where there are emoticons that you can choose from.

Based on the following positive traits stated in the article, it does seem tempting to just switch over to Facebook. It is a phone and a regular messenger all in one! You can call, leave voice messages, and emoticons! Because I could leave “stickers”, which are emoticons, I would assume that I can leave text messages as well. Then again, there would have to be more information about the texting.

According to this article, the only negative to the new Facebook messenger app is that the quality is really poor. The sound of the other person was fuzzy and tinny. I would not want to spend time to just understand what the person is saying on the other side. People do not like lag! They want this convenient. Don’t you just not like it when someone is talking, and they are cutting up and you can’t hear what they are saying? In this situation, I get frustrated and want to attempt to make my internet faster. This is, again, understandable because it is a new app.

I have rarely seen a new released product that does not have a negative side to it. Because Facebook let people sample on them, they would get their feedback and, I would hope, further enhance the new messenger. By doing this, they would need an update.

Question: Would this new Facebook app be a new trend? I know there are many other messengers out there that have free texting and free calling, but they only give you so many minutes. After you use them up, you would have to pay for them. Therefore, with unlimited minutes, would people start to just go over to the Facebook application for calling, even with low quality? If this Facebook messenger application was enhanced with higher quality, would you decide to switch over to use this new Facebook messenger app?

 

Sources:

http://www.chicagotribune.com/business/breaking/la-fi-tn-facebook-android-voice-calling-messenger-20130419,0,3217608.story

Wrong CEO, Crazy Damages!

Posted on by f1222sghatila

Wrong CEO, Crazy Damages!

Someone might think that a big company might have all the resources and very intelligent people working because they can afford to do so. In addition, those people will make the right decisions to improve the quality of work and increase the profit in the long run. J.C. Penny is one of the big companies that with one critical decision they lost almost a billion dollar. The hired the wrong person, which lead to critical changes that did not work out in the favor of J.C. Penny and increasing their profits. When Ron Johnson was announced as the new CEO of J.C. Penny the stock prices was $34 and within 2 years, the current stock price is at $14. The reason behind such a dramatic change is the structure of J.C. Penny. The CEO made changes to update the entire store and eliminate the coupons. Johnson did not pivot the idea that start off small and once people accepted the change and wanted that change increase though out the nation. Johnson took a big leap and caused J.C.Penny’s regular customers to look elsewhere for their purchasing needs.

Myron Ullman who was the CEO before Johnson had agreed to go back to and reverse the changes implemented by Johnon. He has agreed to stay until J.C. Penny has the right CEO. The changes made by Johnson eliminated the middle-market customers, which where their target market. Even though someone might think that updating the store and keeping a low price while eliminating coupon will cause more people to come is not necessarily true. Ideally, any idea sounds good but pivoting the idea is to make changes without losing a lot of money. Ulllman’s plan is to change things back and bring back the lost customers what where their target market but getting someone to come back after they have lost the trust is somewhat hard. Ullman has the niche to fix things, which he has done before and J.C. Penny is counting on him to bring back the people and profit into the stores again. His biggest challenge will be to remind the customers that what J.C. Penny was before and nothing has changed.

Quality of management makes a huge difference in the success of any company. Being in this state and losing a lot of money is very critical for J.C. Penny. If they continue to do so they will soon have to declare bankruptcy and that is a whole other situation. Being in economic crises right now and extreme competition from places like Macy’s and Kohl’s’ it will be hard to J.C. Penny to gain the customers because the rivals are trying to take up as much market has they can of lost customers. J.C. Penny is at a critical position right now; the question now remains whether they will be able to reverse the damage.

Do you think the J.C. Penny will gain its customers back and be able to create profit that they use to?

http://www.businessweek.com/articles/2013-04-11/j-dot-c-dot-penney-rehires-myron-ullman-to-clean-up-ron-johnsons-mess#p1

Facebook Home for Mobile Users Innovative? or a Flop?

Posted on by spr1331abarrios

Facebook wants to takeover your computer, tablet, life, and now your Phone?

The sole objective for Facebook Home is to immediately let you gain access to the social network with just a simple look at your phones screen, and this works without you physically running the app or even unlocking your phone. So in simple words, from your locked screen you’ll be able to see your news feed, posts, and full screen photos posted by friends—not to mention you will also have the ability to comment and like the items you stumble upon.

Facebook Home
Facebook Home “Start Up Screen”

So how exactly is this innovative/different as to other phones with normal software? A Facebook Home equipped phone differentiates itself from other phones as you turn on the screen. You will see the time and a small circle at the bottom of the phone displaying your current profile picture. If you don’t touch the screen, your news feeds, known as Cover Feed (in Facebook Home), will start displaying and automatically scrolling from one post to another. There is also the option of manually swiping through the feed just incase you come across something interesting. On the bright side each post takes up the entire diameter of the screen, giving you the perfect visual. If a photo is posted then it will lighten up the screen and you have the option of double clicking to enter your comment or to add a like. If it’s a text post, the author’s photo will appear transparent in the background. If you swipe your finger to the right, you now engage in Facebook Messenger, where you can directly speak to your friends, while also seeing and receiving your SMS texts.

If your friends are boring and you’re really not an avid Facebook user then I can see this being very pointless and annoying to you. But if your obsessed with Facebook and constantly stalking an ex-boyfriend or girlfriend or cant get enough from just having it on your computer, then Facebook Home might be right down your alley. Then again, the option for Facebook Home is 100% optional when buying a new phone, so Facebook still allows the customer choose whether they want to adapt to Facebook Home or just use the normal app.

iPhone users, you like the idea? Well unfortunately Facebook Home is an optional feature for Android users only. It won’t be running on any Apple products because apple does not allow other companies to take control of the main functions. Though in Apples basic settings you are allowed to sign into you Facebook and Instagram and be able to share content easily. But that’s as far as it goes with Apples strict policies.

Do you think Facebook Home is differentiating the brand in the right way or setting up for a flop in the mobile world? Was it a bad decision to make software that has opted them from the biggest mobile manufacturer, Apple? What are you thoughts?

 

References:

http://online.wsj.com/article/SB10001424127887323550604578412664150862712.html

 

 

 

 

 

Got Maps?

Posted on by w13lewis

I know, I know… Many of us in the Business world are sick of talking about, thinking about, and reviewing how good Apple is doing. My CEO says we need to be more like Apple, be the market leaders, innovators… like Steve Jobs. So it is to my pleasant surprise, when an opportunity comes up to talk about Apple’s mistakes, I don’t mind going into detail.

When the first iPhone premiered, it was not Apple’s strategy to make a GPS, nor an infinitely vast search engine. No, their goal was simple; make a phone that worked, was easy and intuitive to use, and make it look amazing. On every account Apple achieved what they set out to accomplish  When they opened the app store, they revolutionized mobile computing. They changed the way software companies could make money on mobile. Instead of tiny banner adds at the bottom of your mobile web browser, you could buy an app that was worth the dollar. One software publisher was there first, Google. Google brought directions and navigation to Apple’s iPhone. Apple liked it, so it was installed by default. It was simple, easy to use, and it worked wonderfully.

At some point in the last few years, Apple has started to control the App space more stringently. They’ve frequently cited security or legal reasons as to why they would deny a software publisher’s right to sell on the online mobile store. Strangely, with the release of the latest phone (iPhone 5) and the newest operating system (iOS 6) they denied Google the ability to publish the Google Maps App (which was free to download and install), and instead released their own version of the Maps App which was installed by default.

In an uncharacteristic move by Apple. The Apple Maps App was downright awful.  It was unpolished,  difficult to use, often sporting inaccurate or inefficient directions to your destination. If you were so lucky to use it on the new iPhone 5, you have turn-by-turn navigation with a friendly voice who would sometimes get you lost. In fact, the navigation of the new app  was so bad that caused a few incidents, even causing Australia to issue a Public Service Announcement to not obey Apple Maps directions as they could be dangerous.

This week, Apple effectively conceded defeat and allowed Google to once again publish Google Maps to the App Store. Within days, Google Maps became the most downloaded App in App Store history. Indicating both that Apple’s Map application was rubbish and that Google’s Map App did not represent a major threat to Apple’s primary business strategy.

So here’s the key question, if Google and Apple are direct competitors, why would they let Google bring their Map App back? If they’re not directly competing against each other, why ever remove Google Maps in the first place? It is possible that Apple thought they could push Google out, and gain market share. Instead, they upset a huge core of their customers who are now delighted that Apple brought back the real Maps App.

 

http://www.guardian.co.uk/technology/2012/dec/10/apple-maps-life-threatening-australian-police?utm_source=twitter&utm_medium=socialmedia&utm_campaign=gadgetlabclickthru

http://www.guardian.co.uk/technology/2012/dec/13/google-maps-iphone-app-downloaded

787 Dreamliner Debut…finally a dream come true?

Posted on by f1224srokicki

Inside the Boeing 787 Dreamliner with CEO Jeff Smisek (video)

After years of production delays and costs overruns, November 4 marked the date for the historic use of the Boeing Dreamliner to finally take flight in North America. With suppliers located all over the world in a large-scale collaboration, delays should have been expected. Originally planned for its first flight in August 2007, problems with excess weight and manufacturing and other problems caused for five delays and the first model was delivered in September 2011. The first commercial flight service was on October 26, 2011. Orders for the plane came in before initial production and these delays have caused many unhappy customers and calls for compensation.

It’s amazing that even with all of the delays, many airline companies have still continued to place orders. This extraordinary airplane has promised features that will supposedly astound not only its passengers but its flight crew and potential customers as well. With Boeing finally delivering on this exulted and greatly advertised product, will this plane meet its high expectations?For many of the people on this historic flight, the answer is yes.

United Airlines is the first airline in North America to operate the use of the Dreamliner with a commercial flight from the George Bush International Airport in Houston to O’Hare Airport in Chicago. United Airlines celebrated this historic event with a ceremonial ribbon cutting attended at the departure gate by its senior level management and the 200-plus passengers.

Many passengers commented on the design of the 219-seat interior plane as well as the tranquil atmosphere they experienced. Many noted the reduced noise from the engines, wings, and landing gears along with many of the other special features of the plane. Many new features include 30% larger windows with adjustable tint windows, spacious storage, dynamic LED lighting, a quieter cabin, and a smoother ride. The plane’s composition produces greater fuel economy, less maintenance, lower cabin pressure, and less time out of service. Attached above is a short video of the interior of the Dreamliner.

Even with the delivery of this one Dreamliner, there is the possibility that Boeing can still face problems with its suppliers which in turn causes further delays with providing its customers finished products. So my question is even with all of these fantastic features of the Dreamliner, does it make up for the years of delayed delivery? With multiple airlines carrying this Dreamliner, what does that mean for the competitive advantage of a company? And with all the past production delays, is it possible that there are still faults with the Dreamliner?

http://www.businessreviewusa.com/business_leaders/united-airlines-debuts-first-boeing-dreamliner

https://hub.united.com/en-us/787-Dreamliner/Pages/Infographic.aspx

 

The Battle: Popular vs. Unpopular

Posted on by f1224jwu

 

During one of your shopping trips, had you ever need to make a decision on whether to  buy a store brand or a name brand? Well I know I had that dilemma whenever I went shopping because I want to get the most out of what I had paid for. I often find myself comparing the quality of the products by looking into the ingredients it is made out of. Whenever I am unsure I usually go for the name brand because they are well known, which means the quality is ensured right? This might not be the case because the unpopular store brands can actually be a comparable quality to name brands.

As we have discussed in class, the quality of a product is subjective. The customer’s expectations are influenced by three factors which are what you hear from others, how it meets personal needs, and past experiences from products. These expectations lead to the objective quality and the perceived quality. I have high expectations for name brands, because I was often told they are made with better quality than store brands. From my past experiences, store brands often have minimum quality compared to name brands which left me not satisfied. This often led me to always choose name brands because it is a safer choice, even if it costs me more.

I have read an article titled “Store-brand vs. name-brand taste-off”, where two products of the same type are compared  from either store or name brand by surveying consumers. As a result, many of the store brands are a comparable alternative to the name brands. The taste sensory test between the name and store brand resulted in a tie 10 times, name brand had won 8 times, and the store brand had won once. The quality is almost the exact same and makes it affordable for consumers.

The difference between store brands and name brands are how they were manufactured, which reflects on quality of the product itself. Name brands cost more because the companies invested money in the product for advertising, development, and research. This gives a better reputation and ensures quality of their product to their consumers. Whereas the store brands has little to no information available on where there product came from and is often sold for a lower price because they are not known. The qualities in both products are almost the same. Store brands should be given a chance and it will help you save money.

 

Questions:

  • Would you rather purchase name brand or store brand products? Why?
  • Do you think name brands guarantee quality of the product?
  • How much trust do you have in store brands over name brands?
  • What are your expectations in store brands?

 

Article: http://shopping.yahoo.com/news/store-brand-vs–name-brand-taste-off.html