Competitive advantage

Any Gift Ideas This year? A Few.

Posted on by f1223nlopez
iPhone 5
iPad Mini
Nook HD
ChromeBook
Microsoft Surface
Galaxy Note II

 

 

 

 

 

 

 

This year is an awesome tech year, if you like that kind of stuff.  Instead launching one or two big gadgets just in time for the holidays, there have and will be a barrage of gadgets that will fit under the tree, and they are big competitors too.

Just like a movie release doesn’t want to be outshined by another big movie, neither does a tech company. Companies will push back or move forward their release dates and some will even go as far as to move because they want to reach consumers faster than competitors. This month, tech announcements all landed within about a week with announcements for Windows 8, Microsoft Surface, The iPad Mini, Google Chromebook, Nook HD, Windows Phone 8, A 10-inch Samsung tablet, a new Google phone and many more. Differentiation is “distinguishing the offerings of an organization, in a way that the customer perceives as adding value”(36, Heizer and Render). Do any of the companies really have this differentiation, or doesn’t this affect attitudes toward a new product? I would have to say that Apple set itself ahead of other competitors a few years back when it introduced the touch screens before anybody else, but now it seems there is a lot of copy cat gadgets, where its hard for them to get that differentiation anymore.

I think that it will be a good benchmark after the holidays to see who really has the biggest competitive advantage in the market this year. Will the competitive advantage be more geared at price or polish?

We already talked about forecasting in our operations management class, but how can each company have an accurate forecast with so many competitors in the market, dropping some pretty cool additions to the tech world?

On a side note, does the color of one gadget to the next bring up a concern in the selection process?

 

http://www.nytimes.com/2012/11/01/technology/personaltech/presenting-the-nook-hd-ipad-mini-and-windows-phone-8-review.html?pagewanted=all

 

Shopping with a Pal

Posted on by f1233nmoarefi

With the holidays just around the corner, PayPal has recently announced that they will be price matching, offering free shipping on returns and financing products for 6 months either online or in store up until the end of December.  Doesn’t this sound pretty good? You don’t have to stress about paying those outrageous shipping charges and can return anything without hassle.  Also, you can get the best deal that is out there easily.

PayPal is going one step further when consumers purchase a product within  30 days and a different store has the same item for cheaper they will give the consumer the difference in the price back. All the consumer has to do is fill out a form  and write which store has the product and the price and PayPal will take care of the rest.  Each PayPal user can get up to $1,000 in matching up until the end of December.

With PayPal’s free shipping policy, they are allowing customers to return any item for free providing them with free shipping labels or they customer can pay for their shipping and they will be reimburse the cost to their PayPal accounts. There are limits though on how much money you must spend to receive free shipping. For the promotion there is an $100 limit. On top of that they are providing free financing for 6 months on any purchases over $99. This is a great deal for people who may not have all the money up front and if they know they can pay it off before the 6 months, they will not be charged any interest. For people who know they cannot afford to pay a product off in 6 months or less should not finance because they will be charged interest which will accumulate over time.

These are holiday specials that PayPal is offering and is not something that will be long term. However, I think that if the company is able to generate enough customers to take advantage of these promotions I think they should keep them as long term, rather than short term. Especially having so many competitors out there such as Amazon, who offers free shipping on $25 dollars or more, PayPal would benefit from offering these services. I also think that they can potentially boost their sales because as a consumer I always look for free shipping and places that will match prices of other competitors.

I think that PayPal is heading in the right direction and if this holiday season turns out to be a success for the company, I predict more offers and deals to come. What do you all think about PayPal offering these holiday specials?

 

You can read about this article at the site below:

http://gigaom.com/2012/11/01/paypal-offers-price-matching-free-return-shipping-for-the-holidays/

http://www.google.com/imgres?um=1&hl=en&sa=N&biw=1517&bih=693&tbm=isch&tbnid=uCzaKyrUMHt5qM:&imgrefurl=http://www.chinahighlights.com/aboutus/member/paypal.htm&docid=MhTlTmRHriscNM&imgurl=http://www.chinahighlights.com/image/aboutus/member/paypal-big.jpg&w=458&h=480&ei=VC-UUL3uKYHSygHx7oCAAQ&zoom=1&iact=hc&vpx=173&vpy=166&dur=1834&hovh=230&hovw=218&tx=104&ty=144&sig=113221418617351852125&page=1&tbnh=130&tbnw=124&start=0&ndsp=17&ved=1t:429,r:0,s:0,i:138

 

Why can’t we be friends??

Posted on by f1211jalbarran

Creating close relationships are vital to any company whether it is big or small. The article “5 Ways to Build Better IT Outsourcing Relationships” explain to us the importance creating a bond with whomever we decide to choose as a business partner. The 5 ways that create value are to scope and scale, service levels, the value of a healthy relationship, global delivery models, and process improvement. It is important to know before hand what the company is going to need IT service providers to do for their company because it will make it easier for both sides to figure out costs, amount of work that will be put into the services, time, and labor. If the company is able to create a healthy and balanced outsourcing relationship then the company and the IT service provider will be able to communicate and to be on the same page.

 

I believe that the third way is the most important, the value of a healthy relationship, because not only in business you must have a healthy relationship with those who you work with, but in everyday situations. By creating healthy relationships, one opens an endless amount of doors with who ever you meet. People will be more understanding of what one has to offer and will go out of their way to help with any issue or problem that may arise. In the business aspect, “historically, clients have had a myopic focus on cost reductions and securing the ‘best deal’ without fully appreciating the consequences on service delivery and business user satisfaction,” says Daly. In this sense it makes creating a relationship with the IT more valuable since the company will be saving money and working with someone that already knows the company’s identity very well.

 

Nowadays it is very crucial for companies to create a partnership with an IT company or to hire a person for your company that specializes in IT. Businesses have to use technology to survive in today’s economy. The majority of people now own smartphones that can access the internet at any time and place. It would work against the company if they did not use take the time market themselves to their customers on the internet or through apps. I personally use my phone everyday to make decisions on where to eat, how to get from one location to another, and whether to purchase an item in the store or through Amazon. We all use our phone to help us make these little decisions.

 

There are endless opportunities for a company to outsource for an IT specialist. The company just has to make the right decision on whom to hire, they need to find the perfect match that will fit in their current and future plans. What are other benefits and reasons to outsource for an IT specialist and why might this help your current job or for the plans in your future?

 

http://www.cio.com/article/720000/5_Ways_to_Build_Better_IT_Outsourcing_Relationships?page=1&taxonomyId=3195

http://www.cio.com/article/720000/5_Ways_to_Build_Better_IT_Outsourcing_Relationships?page=2&taxonomyId=3195

 

 

 

 

The Downward Spiral of American Beer

Posted on by f1233pmazurek

 

As many people know Annheuser-Busch merged with a Brazilian company named In-BEV, now known as AB InBev and people are starting to question the beer industry. AB InBev now controls 48% of the beer market and 68% in Brazil alone. So what is the issue? The distinct taste of American beer is now being produced with many foreign beers. Since the merger Ab InBev has moved production of many beer plants to right here in the U.S. That is good for workers here in the states but not necessarily for the avid Budweiser drinkers. Many people have complained that the beers are becoming more bland and not as tasty. In the article a Beck drinker for 25 years went and bought a 12 pack and said the beer just didn’t taste the same. After further inspection the German beer “Becks” was now manufactured in St. Louis, Mo. AB InBev has seen beer sales drop for many of their beers but they are still profiting as a company. The new manager of the firm, Brito, is making all sorts of cut backs in the company and as well as in the production of Budweiser. Budweiser has always boasted about using whole grains of rice in their beer and now the quality in the rice is the most important part and it doesn’t matter if it is whole or broken grains. He is also cutting off suppliers which have been used for over 25 years. These cutbacks are shutting down businesses and changing the beer industry as well as the beer itself. I understand making cuts to make a profit but is it truly ok to modify the beer which has been loved by the public for decades?

I do not believe it is ok, unless the public is made aware of the changes taking place in many of these breweries. If the customers continue to buy Ab InBev’s products and taste a difference should they not be informed?  These modifications may not be noticeable to the once in awhile drinker… but it definitely will be to the loyal consumers of Budweiser. Modifications to this beer will also mean modifications to other American beers will occur as well, eventually altering the American beer market forever. Brito, the managing director of the company, will not comment on any of the changes and refuses to give any interviews.

To add insult to injury Brito has also raised the price of Budweiser and Bud Light, seeing how they are the most popular American beers right now. The price increase has slowed sales in 2011 by 3% and Bud slipped by 13%. Many researchers said it is not unconstitutional to make a profit in any company and Brito has done a great job of doing that, but it maybe un-american to modify a beer that has been iconic in the American culture for years now.

Are you Willing to Play “FarmVille”? How About “FarmVille 2”?

Posted on by f1231mburton

In 2009 Zynga Inc created the extremely popular online game “FarmVille” that is exclusively played through Facebook.  It launched in about five week with only a 10-person team.  At its peak “FarmVille” had roughly 32 million users per day but has dropped all the way to 2.8 million users per day.  For the last two years Zynga has been pushing to reinvent themselves and regain the market of gamers they once had.  In September 2012 they came out with “FarmVille 2.”  To make sure that “FarmVille 2” was a complete success Zynga hired 50 works, including an executive from videogame maker Electronic Arts Inc, which help to create their new 3-D graphics.

Zynga has a lot riding on the success of “FarmVille 2” and has already warned investors that there will be losses next quarter’s financial outlook.  Along with delays of production on upcoming game launches.  They are trying hard to recapture their initial buzz by spending $171 million on researcher and development of their product.  By investing more money, they hope that users will be more enticed to buy more virtual goods.   Since their “FarmVille 2” launch in late September 2012 they only had 8.2 million users per days, which is far from what they had expected.

Zynga competes on a differentiation approach, by making their games free they have to make users want to play their game.  For instance Zynga create a unique soundtrack to their game “CastleVille” and also revamping the image to “FarmVille” gave Zynga their competitive edge.  Zynga also witnessed a quick product life cycle with “FarmVille”, which lasted about two years.  When  “FarmVille” reached it’s maturity in 2010 it had over 32 million users and had less focus on changes of the game.  During its decline many other games distracted gamers with new ways to win prizes and to get ahead in the game.  With the new “FarmVille 2” it is still in its introduction but Zynga had planned a forecast that showed more potential daily players than it currently has.

Zynga is fighting an uphill battle trying to regain is popularity.  But it might take more than changing the image and making incentives for users to continue playing and to get old users back.

 

http://online.wsj.com/article/SB10000872396390444657804578053171742809466.html?mod=WSJ_business_LeftSecondHighlights

 

Knowing the Future, for the Stability of Present

Posted on by f1222sghatila

Knowing the Future, for the Stability of Present

Everything in our daily lives requires a form of forecasting for us to be able to predict what to wear, consume, and safety. Hurricane Sandy, which is forecasted to hit the East Coast, helps people with their safety and precautions we  have to take to secure their lives, family, and home. Many people are planning to evacuate because of the information given about the hurricane in advance. We depend on these types of information for our health and safety. Depending on whether the weather channel says if it will rain or snow, we all dress according to that. Due to the current weather situation, many fliers have to consider their delay and canceling of flights. This delays a lot of business process and other situations and airlines have to consider this when rescheduling flights for the process to run again. Forecasting is a major aspect of our life and the information is depended upon for the present to be as smooth as possible.

Most retailers have already forecasted for the sales of fourth quarter, holiday season. They want to produce as much as the demand is suggested for, their revenue depends upon it. Forecasting is a major  aspect of any job. It tells you how many to hire to produce a certain amount, how much of the product will be sold, and this information is critical because competitors thrive on an advantage to do better than you do. Halloween season creates a high demand for candy, which if forecasting did not occur either we would not have enough candy or surplus or either situations have negative consequences on the revenue and growth of the company.

Apple is on top of the technology world right now. Their products are sold and back ordered for months because their demand is incredible. Currently IPad mini in white are completely sold out and even though black ones are still available, their inventory does not have enough for those who demand it. They are losing on business for those that could have been sold if availability was an option. Having a demand forecasted accurately would help the business grow and keep consumers happy. Loyal customers will always stay as long as possible but those who are indecisive about a brand will potentially lose a customer if forecasting is not done accurately.

In what other ways do we use forecasting for our daily lives?

http://www.chicagotribune.com/business/breaking/chi-airlines-ask-fliers-to-reschedule-due-to-big-storm-20121026,0,3996884.story

http://www.chicagotribune.com/business/breaking/la-fi-tn-apple-white-ipad-mini-20121026,0,4979541.story

What kind of tablet would you like for Christmas? Maybe a Nook?

Posted on by f1224srokicki

NOOK HD Snow 8GB

As more and more people have begun to steer away from physical books to e-books, e-readers and tablets have begun to establish themselves as the next big product. Barnes & Noble entered into the Tablet industry with its first tablet, the Nook Tablet, last November in order to compete with Apple’s iPad and as well as Amazon’s Kindle Fire. With this introduction of the Nook HD, Barnes & Nobles has begun the phasing out of its previous tablets, the Nook Tablet and Nook Color. This new design, which introduces an upgrade in hardware and software, comes in two different sizes, one with a 7-inch screen and the other with a 9-inch screen. This has come on the brink of Amazon’s announcement for four new varieties of its Kindle which also offers larger screens to compete with the iPad’s 9.7 inch screen.

In order to compete with the offerings of its main competitor, Amazon’s Kindle, Barnes & Noble has also introduced a new video service in conjunction with major television and movie studios like Warner Brothers and HBO to allow its users to watch and buy movies and televisions shows on their mobile devices and TVs. Amazon currently offers more services which include a larger app store and video library as well as also providing its customers with its huge product offerings. However, due to the constant threat of Amazon’s online retail operations, retailers like Wal-Mart and Target refuse to carry the Kindle which allows for more opportunity for the Nook to be reached by possible consumers without the extra competition of the Kindle.

The tablet category has seen rapid expansion with many competitors entering the industry. According to Forrester Research, approximately one-third of U.S. adults will own some form of a tablet by 2016. That doesn’t even account for the amount of families that own multiple tablets for their children to use. So for Christmas, which kind of tablet would you like? Is it possible that the cheaper prices of the Nook and the Kindle can sway even more consumers towards it rather than going for an iPad?

Sources:

http://www.suntimes.com/technology/15389281-478/barnes-noble-launches-new-nook-hd.html

http://www.barnesandnoble.com/p/nook-hd-barnes-noble/1110060426

Taking Online Shopping Offline

Posted on by f1234erose
Online Shoppers who choose to forgo shipping chargers visit Walmart to pick up items ordered online.Link to NYTimes article “Luring Online Shoppers Offline”

Online shopping has caused retailers such as Macy’s, Best Buy, Sears and The Container Store to loose millions in sales. Consumers have had such a profound obsession with purchasing a product at the lowest price possible that almost every product sold at traditional retail stores is constantly being matched up with prices online. Currently, Best Buy is even going to the extent of customizing the bar codes on their products so they cannot be scanned by consumers so they are able to look up online prices from sites such as Amazon.

To avoid having in store sales reach an all time low, retailers are attempting to lure consumers into the store by promoting their own online operations on site. Walmart has made an effort to add Web return centers, pickup locations, free shipping outlets, payment booths, and drive-through customer service centers for online sales to appeal to the growing amount of online shoppers.

Retailers like Walmart believe that they could potentially have an advantage over their online retail competitors due to the fact that shopping offline eliminates the expensive shipping fees. Walmart gives customers a variety of options such as being able to order products from their online website and then being able to pick it up and pay for it at the store, thus appealing to customers who have a trend of preferring to pay cash for products.

From focusing on the cash option, Walmart has seen a dramatic rise in demand due to promoting online pickup at their stores, which now accounts for half their sales. As a whole, Walmart has the advantage of appealing to customers that do not have a bank account of credit cards. In addition, the in store pickup also appeals to consumers that favor to buy items in bulk that do not qualify for online purchases.

Fellow retailers of Walmart such as The Container Store and Sears have taken on site purchasing to a new level by promoting a drive-through service that allows for consumers  to get what they need on the go. This service has also seen great success because it appeals to the consumers who shop online because they do not have the time to navigate their way through the retail store to purchase the products they need. Recently, a new trend has shown that customers who used this pick up  service have caused them to visit 50% more than customers who regularly shop in the store.

The competition between traditional retailers and e-commerce companies will continue to exist, but the efforts made by the traditional retailers to keep up with online shopping have been greatly significant. With all the new bells and whistles added to their offline services, will retailers truly be able to take shopping offline for good?

Source: http://www.nytimes.com/2012/07/05/business/retailers-lure-online-shoppers-offline.html?_r=0

Starbuck’s Squared

Posted on by f1234dsonenshein

When I think about running a business I know  can achieve a competitive advantage by differentiation, cost, or response.  We all know Starbucks Coffee Company doesn’t really compete with cost.  Instead, they have decided to gain a competitive advantage through differentiation, not in their product, but in the way you can pay.  An article from the Wall Street Journal stated, “Starbucks mobile payment app was different from other retailers because it combined paying on the go with the reward program already in place” (http://online.wsj.com/article/SB10000872396390444423704577575803898185594.html).

Starbucks Coffee Company has decided to invest $25 million in Square as an effort to stay ahead of everyone in respect to the mobile payment apps. With this investment, Starbucks will be able to give their customers what no other coffee shop does.

Customers will be able to walk into a store and up to the register, say their name to the employee, and receive their beverage without even taking their wallets out.  Of course in order  for this to happen the customer must have one of two apps: the Starbucks mobile app, which will allow a customer to pay with their Starbucks cards on their phones or the Pay with square app, which will allow customers to use their credit or debit cards on their phone.  They must also be in a store that is using the square technology.

Eventually, Starbucks will use Square’s technology to process all of the credit and debit transactions in 7,000 of their U.S. stores.  This partnership looks great and it could definitely help Starbucks stay ahead in the mobile payment area.  I am sure most people have been in a Starbucks recently, and you can tell how hectic it gets.  Right now, you can walk into any coffee shop, wait in line for your coffee, and pay for it like everyone else.  Can you imagine, a year from now, you’re standing in line at Starbucks, you get to the register, and you can order your coffee without even taking out your phone or wallet.

Starbucks has decided to give their customer a new way to pay and are leading the front on mobile pay technology.  What are some of the pros and cons of this decision and how do you think mobile pay technology will effect the way companies plan  their operation strategies?

 

Ford, a New Leader in the Hybrid Vehicle Market?

Posted on by f1234swatch

Ford C-Max Hybrid, Ford’s first hybrid-only line of vehicles that was only available in Europe, has now introduced a 2013 C-Max Hybrid model in the United States, which was released in September 2012. Ford invested a huge amount of money in research and development in hybrid technology with an aim to become “America’s most affordable hybrid utility vehicle.” The hybrid model is developed to compete with Toyota Prius, the world’s best-selling hybrid car. The hybrid model base 2013 retail pricing starts at $25,995, including destination and delivery charge. The price is $1,350 below the Toyota Prius v, a van-like vehicle.

A federal government fuel economy rates C-Max Hybrid at 47/47 mpg city/highway while Toyota Prius v and Honda Civic Hybrid were rated at 44/40 mpg and 44/44 mpg. This shows that Ford is able to deliver better fuel economy, which allows it to beat its competitors in the industry. Even though Toyota Prius is the first mover an the largest producer of hybrid vehicles and gain competitive advantage in the market, Ford challenges the “plain styling” of Prius with its “fresh” and “modern looks.” Ford believes that it has developed a better vehicle. Ford C-MAX Hybrid “Says Wheeee” Commercial

The features of C-Max hybrid are shorter at14.5 feet long, bumper to bumper than a regular Prius. Moreover, it has comfortably raised driving position, optional high-grade amenities and smart tech displays. C-Max Hybrid is designed to have more space with the extended cabin and tall rear. A driver does not plug in the C-Max Hybrid, because electric power is generated onboard, stored and then routed out of the onboard battery pack. Another development is that C-Max has a maximum horsepower of 141 while Prius and Prius v have only 98 horsepower. This is enough for a travel range of more than 500 miles.

As I read the article, I can relate it to our recent class lectures. Ford applies many concepts we learned in order to stay in a competitive market. Ford uses a low cost of the product strategy to enter the market. It uses reverse engineering by inspecting competitor’s product to improve its products. It is able to translate customer needs in a current economy when gas prices are high into the product by using quality function deployment. Lastly, it focuses on hybrid vehicles by reducing the use of fuel. This shows that Ford is concerned about sustainability and environmentally-friendly production. Because C-Max Hybrid is more fuel efficient, roomier, cheaper, and faster, I think that it is possible that Ford C-Max Hybrid will be able to beat Toyota Prius, a top-selling hybrid car.

 

Questions:

– Do you think that Ford C-Max Hybrid would be able to launch successfully in hybrid vehicle market?

– What do you think would prevent C-Max Hybrid to gain market share of  hybrid segment from Toyota Prius?

 

Sources:

http://abcnews.go.com/US/wireStory/max-hybrid-ford-challenges-prius-17443886#.UHm1chzgzBD

http://en.wikipedia.org/wiki/Ford_C-Max

Image source:

http://www.ford.com/cars/cmax/features/