Source: Business Week September 18, 2008
Authors: Erik Hesseldahl
Concept: Target Markets, Segmentation
Brief Synopsis: This article is interesting in that it poses the idea of bringing broadband internet connection to rural areas that currently are only able to get the slow dial-up connections. There are many companies and business persons who live in rural areas and desperately need the broadband connection to operate and help customers. There is one company that is dedicated to getting broadband connections to rural areas by tracking demand and holding meetings in rural areas. However, the path to getting this accomplished is bumpy as companies aren't willing to cut profit margins for rural areas.
My Thoughts: I think this is a great idea. Personally, I grew up in a small town in rural Illinois and was only connected through the local dial-up server. My parents also own their own business in rural Illinois and have the same problem. I would need the internet for school projects and would have to spend hours longer than people who could get DSL in town. Likewise, my parents have to use the internet to place orders with some wholesalers since they no longer take orders over the phone. This takes up way too much time considering they are trying to run a business and have hundreds of other things to get done. The way technology is developing, it is almost necessary to extend broadband to rural internet users.
Monday, September 22, 2008
Monday, September 15, 2008
Learning From the Olympics
Source: Business Week August 18, 2008; Pg. 36
Authors: Reena Jana, Frederik Balfour and Oriana Schwindt
Concept: R&D, Marketing
Brief Synopsis: This article discusses how many companies are using the olympics to showcase new technologies and use the coverage as a free way to market products. Also, new products are tested and feeback from athletes and trainers are used to help R&D teams to improve the existing product. Companies display products from varying categories, ranging from medical scanning systems, to swimwear, shoes, tracking chips, and vitamin-enhanced energy foods! The olympics seem to be a great way to test and market new, innovative products. For instance, General Electric has been able to rack up $700 million in sales from the Games alone.
My Thoughts: I think that the companies who are using the olympics to test out new products have the right idea. Not only do these companies get feedback from the best athletes on their products, but they also get free media coverage which promotes their products to the public. If Michael Phelps is wearing the newest goggles from Speedo, you can count on swimmers everywhere going out and buying the same pair--and all that coverage was free (during the Games at least!) The Games give great insight to products, though. If a product in unsatisfactory for an athlete or trainer, the company can take that feedback to the R&D department for more work. For example, another article following this in Business Week talks about Nike's new equestrian boots that look more like "hooker boots". Clearly, Nike made a mistake by trying to modernize a sport that does not want to be modernized. But now they can go back to the drawing boards and change the look of the boot, if they want to try to compete with the skilled hand-cobblers!
Authors: Reena Jana, Frederik Balfour and Oriana Schwindt
Concept: R&D, Marketing
Brief Synopsis: This article discusses how many companies are using the olympics to showcase new technologies and use the coverage as a free way to market products. Also, new products are tested and feeback from athletes and trainers are used to help R&D teams to improve the existing product. Companies display products from varying categories, ranging from medical scanning systems, to swimwear, shoes, tracking chips, and vitamin-enhanced energy foods! The olympics seem to be a great way to test and market new, innovative products. For instance, General Electric has been able to rack up $700 million in sales from the Games alone.
My Thoughts: I think that the companies who are using the olympics to test out new products have the right idea. Not only do these companies get feedback from the best athletes on their products, but they also get free media coverage which promotes their products to the public. If Michael Phelps is wearing the newest goggles from Speedo, you can count on swimmers everywhere going out and buying the same pair--and all that coverage was free (during the Games at least!) The Games give great insight to products, though. If a product in unsatisfactory for an athlete or trainer, the company can take that feedback to the R&D department for more work. For example, another article following this in Business Week talks about Nike's new equestrian boots that look more like "hooker boots". Clearly, Nike made a mistake by trying to modernize a sport that does not want to be modernized. But now they can go back to the drawing boards and change the look of the boot, if they want to try to compete with the skilled hand-cobblers!
Thursday, September 11, 2008
iPhone: More Fun Than Phone
Source: Business Week September 1, 2008; Pg. 20
Author: Olga Kharif
Concept:Customer Value
Brief Synopsis: People who have bought the iPhone are less than pleased with all it has to offer. For some, up to 40% of calls are being dropped. A source close to Apple blames it on a chip from Infineon that manages wireless communications, while Infineon spokesman says the chip performs smoothly with Samsung phones. iPhone owners have turned to using a different phone, mainly the Blackberry, as their primary phone and keeping the iPhone for internet searching and video viewing. According to the article, the iPhone is a cool toy, but it's a phone and that is what people need to to be first. Instead, Apple should change the name to iTablet.
My Thoughts: From the article, it seems as though Apple has not been successful at creating value for its customers with its iPhone. Likewise, customers do not perceive this phone as having value. In all reality, most of the users, according to the article, aren't even using the iPhone as a phone, but instead as a device for surfing the web on the go. Considering the price of the iPhone, one would expect to be able to make phone calls without having them dropped a little under half of the time. I suppose if a person only bought the iPhone for web surfing purposes value could be perceived, but I believe the iPhone is unsuccessful at creating value for the majority of its owners--Apple needs to watch out for competitors who will undoubtedly design a similar phone that *gasp* actually makes phone calls!
*I personally do not have an iPhone but after reading the article I don't plan on getting one. Hopefully those of you reading this who have this phone have had better luck than those in the article!
Author: Olga Kharif
Concept:Customer Value
Brief Synopsis: People who have bought the iPhone are less than pleased with all it has to offer. For some, up to 40% of calls are being dropped. A source close to Apple blames it on a chip from Infineon that manages wireless communications, while Infineon spokesman says the chip performs smoothly with Samsung phones. iPhone owners have turned to using a different phone, mainly the Blackberry, as their primary phone and keeping the iPhone for internet searching and video viewing. According to the article, the iPhone is a cool toy, but it's a phone and that is what people need to to be first. Instead, Apple should change the name to iTablet.
My Thoughts: From the article, it seems as though Apple has not been successful at creating value for its customers with its iPhone. Likewise, customers do not perceive this phone as having value. In all reality, most of the users, according to the article, aren't even using the iPhone as a phone, but instead as a device for surfing the web on the go. Considering the price of the iPhone, one would expect to be able to make phone calls without having them dropped a little under half of the time. I suppose if a person only bought the iPhone for web surfing purposes value could be perceived, but I believe the iPhone is unsuccessful at creating value for the majority of its owners--Apple needs to watch out for competitors who will undoubtedly design a similar phone that *gasp* actually makes phone calls!
*I personally do not have an iPhone but after reading the article I don't plan on getting one. Hopefully those of you reading this who have this phone have had better luck than those in the article!
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