Online Groceries

 http://blogs.wsj.com/venturecapital/2013/04/12/investors-stay-hungry-for-online-groceries-in-relay-foods-deal/?KEYWORDS=core+competency

Do you think retail grocers will be challenged to maintain sustainable competitive advantage with the emergence of online grocery options?
Not in the immediate future.  I do think there will be a merging of the online concept with the traditional bricks and mortar stores.  Like the article stated, many consumers are going to feel more comfortable buying products from a store and source they know is of the expected quality they are use to. 

Some grocery chains seem to have established core competencies in online grocery (Walmart, Safeway).  Assuming online grocery shopping rapidly increases its market share, how will those without core competencies in this area compete?
They have two possibilities, one seek a merger/acquisition with a company that does have a core competence of online retailing or two work on offering something in stores that online customers can't get.  Many of the boutique grocery stores in my area have developed little wine tasting events, sampling of products, even social events to draw in customers, the more they can offer these types of perks the more they increase their core competence on the brick and mortar side of the business, maybe they don't need to do both.

Is the online grocery offering really a core competency; i.e. does it meet the four criteria including: valuable capabilities, rare capabilities, costly-to-Imitate capabilities, and nonsubstituable capabilities?  Another way of asking this question may be: Does it really take much to compete in the online grocery business and might brick and mortar retailers be able to react quickly to any competitive threat in this area?
I don't think the online offering can be considered an competitive advantage, unless they are able to prove efficiencies in the delivery process, for example a special type of bag for frozen items, or efficient sorting and organizing on the delivery truck, or other types of logistical advantages.  I don't think the potential threat is that great, as most of these types of advantages can easily be replicated or redeveloped.

Samsung - Acquisitions

 http://online.wsj.com/article/SB10001424127887324010704578414251706522238.html?mod=WSJINDIA_hps_LEFTTopWhatNews
What would you consider Samsung best internal resource:
They are strong in what they currently are doing, this includes both the tangible assets such as the product and distribution chains already engaged and the intangible assets such as their internal intelligence, business processes, marketing experience, etc.

Which resources have they used to develop new core competences that have contributed to their competitive advantage?. 
They have invested their financial resources into purchasing stake in other companies that can add in the development of a better stylus and displays.  Next up, they will be seeking out the same in terms of gaining a core competency to sell their products in the business to business market.

A company spokesperson commented, "Acquiring a company is also an effective means of developing technological capacity and patent competence." Do you agree? Do you think mergers and acquisitions are a sustainable way of building core competences?
Yes, I think it helps aid in building the core competences, but it also needs to be come from internal growth and tie in with the culture that already exist.

What do you think of Samsung’s product line? Do you feel it maximizes its use of company resources?
I am not that familiar with the product line, but for them to have out paced Apple in the smartphone market globally does give light to the fact they must be doing something right with the resources they have.  But with all growing technology, they will need continue to revamp those resource and their product line to stay ahead.

Hangover upgrade

 http://online.wsj.com/article/SB10001424127887324504704578408750690959288.html?KEYWORDS=competitive+advantage

What value does the product bring to the market?
The value of the product is its ability to minimize the side effects of drinking, The value is unique in the market, it is a rare product and will have minimal initial competitors.

What are the competitive advantages associated with Mercy?
Based on the four criteria in the book for competitive advantage, the strongest two for this product is the value of the product to the consumer and its rare.  The product could be very valuable for curing a hangover, depending on the consumers need to be productive the next day rather then dealing with a hangover will increase increase its value.  The article does not say if this magic potion has a patent, which could increase its length of continued competitive advantage.

Do you see the competitive advantage as being sustainable?
No, as I touched on before, chances are the magic potion wont be able to carry quite the same patent and competive protection like that of lets say a new pharmaceutical drug.  Much like Red Bull there will most likely be other similar products that enter the market, and like red bull, if they are able to be the 'first" to the market and leverage its marketing to hold on to its customers they could hold on to their competitive advantage.


Are there any ethical dilemmas with Mercy and/or its marketing?
Yes, its connection to the alcohol, a legally regulated product does toss in many questions about it consumption.  A few of the major issues I think that will need to be taken on with cation are: 1.  its adding to the ability for consumers to binge drink, which could lead to medical issues and long term side effects, 2.  underage consumption, will the product be available to those underage and who are prohibited by the law from drinking?  3. alcoholism is a dangerous disease, will a product like this increase its frequency in our society, destroying marriages and families, DUI's, etc. 

ShowRooming - Bestbuy

Best buy show rooming

http://blogs.wsj.com/corporate-intelligence/2013/04/04/has-best-buy-turned-the-tide-against-showrooming

Showrooming – big physical retailers being hurt when consumers use as show rooms but buy in stores

Online being pushed to charge sales tax – narrowing the gap

Also offer a price match

More sales per sq foot (other then costco)

Questions:

Has Best Buy done enough to keep its strong position and bring back consumers?  it’s unclear if ‘enough’ as been done, as they are still not turning a profit, but it is safe to say that they have strengthened their position and starting to bring back their consumers.  This article does fail to mention about potential things that Amazon and some of the other online retailers may have not done, which pushed consumers back to the physical store for their electronic purchases, such a possible deficiencies experience with malfunctioning equipment.

What else could Best Buy do to remain relevant and be a market leader?  They need to continue to offer things that the online retailers cannot.  Such as the face to face customer support.  Technical equipment can be difficult and just having a knowledgeable person there to sort out your issues and offer support can be a game changer.

If you were to compete against Best Buy what strategic positioning would you take to exploit Best Buy’s position? I would offer the physical store front for my customers to get the face-to-face customer support they need. 

What degree of ‘Showrooming’ is ok for retailers? Can it ever be stopped? No, I don’t think showrooming is a horrible thing.  It gives the physical retailers the chance to win over the customer.  And even if they don’t win them over the for that specific purchase, they have open the door for when their competitors dissatisfy the customer to become their satisfied customer.

Facebook New Home

Facebook new home

Taking over the main screen on androdes

Check phones almost 100 times aday where facebook is around 12

Center around people, but people first then apps

http://online.wsj.com/article/SB10001424127887324100904578402641910056404.html

What external observations did Facebook make that most likely led to the development of Home?

The technical environment that has lead to people checking the home screen 100+ times a day and facebook only on average of 12 leads facebook to realize they could easily hook into the home screens additional activity to increase their views and in turn potential marketing opportunities.

What potential barriers is Facebook creating for its competitors by essentially becoming the home page for android users? There is only one home screen, so if they are able to secure even just the default of being the home screen they will be able to get users hooked.  One huge barrier to its competitors is that end users don’t like change, once they become familiar with a product and its operation, it will be hard to get customers to invest their time in alternative options for the phones home screen.

In terms of forecasting, what do you think is the full potential of Home?

I think it is large, but there is going to be a huge barrier to overcome with privacy issues, even as the technology becomes more advance at connecting with people, there is still the question of how connected people want to be, in particular their privacy.

How will Home impact Facebook’s leverage with advertisers?

It could be potentially large, given the additional number of views, facebook could develop a strong opportunity for the advertisers to connect to the facebook users, even when they are just acting a cell phone user.

Apple and China - Fair?

http://online.wsj.com/article/SB10001424127887323611604578398250886072728.html?KEYWORDS=apple+china

Apple

Treating China customers unfairly?

Getting in with China mobile

Getting in the lower end handset

1.      What external factors that force Apple to apologize to Chinese consumers?

The political and legal factors were one of the major external factors that forced Apple to apologize.  The China State media acts as a political influence on the Apple and the people of China.  It has access to mass communication, potentially having the ability to passing only negative information to Apples potential customers.   Also, it was stated in the article, the changes to the warranty are designed to correspond to the Chinese law, which is also a political factor.

2.      How will this issue impact Apple’s market share in China? Do you think it is good time for other companies, like Samsung, Nokia or Lenovo, to swallow Apple’s territory?

I don’t think this will impact Apples share, since the CEO, Tim Cook, offered an apology, I would assume this will soon be water under the bridge, even possibly add a positive light to Apple as they show their awareness and respect to the China market and customers.

3.      Do you think that it is a wise choice for Apple to make this apology?

Yes, I don’t think Apple had much of a choice if they wanted to continue their success in the China market.  The market is huge just by sheer numbers, it’s a winning playing field.

4.      What things will Apple loss if Time Cook didn’t issue his apology letter? 

Apple could potentially lose access to the market if they are not willing to modify their warranty to the Chinese law.

Ethical Business

Ethical Business

Environmentally produced products can provide higher profit margins if the companies environmental practices are marketed in a way that makes customers aware of them (and aware of their competitors lack of ethics).  Do you believe this is true, and why?

It all depends; in some cases the cost for following environmental practices could be enormous.   Much of the cost/benefit analysis is going to depend on the industry and marginal cost that will be incurred as its production becomes more environmentally friendly

As ethical business becomes more and more widespread, do you think this advantage will disappear?

No, I believe there will always be the ethical business and the unethical business, which will always produce a gap in the price premium ethical companies can charge.

What was particularly interesting to me was the question "were customers will to pay more for a good that was 100% ethically produced vs. 50% or 25% ethically produced?"  Is this really all about marketing and less about ethical management?  What is the impact of data like this?  Could a company choose to only use 25% ethical production, because investing to get to 50% does not provide enough payback?

This relates back to my comment on the first question, it is hard to analysis this concept without knowing exactly how much the additional cost is going to be for each increase in ethical behavior. 

Also, of another thought that comes to mind when reading this article is how the consumers behavior fluctuates and its relationship to how the overall economy is doing.  As a consumer a few years ago, the economy had a gloomy outlook, high unemployment, etc. at this point I would assume consumers will fall more towards the median regardless of how ethical the company was then if the economy was in a upswing.