Friday, 7 December 2012

NETFLIX


Netflix was the first to offer movie renting service to customers online. They have a very only niche of loyal customers. They also do online streaming of movies and TV shows, and video on demand services. Netflix started out has an innovative price leader for DVD rentals, on a subscription basis which offered free streaming to members. But have changed the pricing strategy and customers have to pay a separate fee for streaming videos. Netflix has low fix cost and is able to past on the saving to customers through their low cost strategy. They offer rentals for lower prices than rivals and this is what attracts their customers. Customers do not have to go out and rent or buy movies, they can have it delivered to their homes or stream it online and these are factors of Netflix differentiation strategy.

Netflix Swot Analysis:

Strengths
• Brand Name
• Strong financial position
• Very wide geographic coverage 
• Dominant market share on online rental
• Low fixed cost
• Expertise and experience in e-commerce
• Loyal customer base
• Economies of scale
• Competitive advantage
• Skilled employees in all areas
• Flexibility and competitively low prices

Weaknesses
• Limited movie options
• Some persons don’t understand how to use their product
• Little control over important expenses like shipping, depending on shippers like UPS.
• Reduce demand for their high price subscriptions
• Unable to supply customers with the latest movies
• Vulnerable to technological changes
• Customers have to wait to receive their products

Opportunities
• Offering other rentals like video game
• Growing demand for online streaming
• Strategic partnership with other companies
• Expanding into Foreign markets
• Incorporating movie downloads

Threats
• Competitors launching similar products
• Piracy 
• Improving technological changes
• Slowdown in market growth
• Likely entry of new rivals
• Cost of entry is fairly low web base business

 The industry growth is slowing down, so it may be beneficial for Netflix to extend their line of products. Netflix could incorporate video games and music in their business offer. They could create bundle offers and give customers better quality. In order to survive they need offer their customers more for less. It’s important to keep their present because competition is very present and the market is no longer going growing substantially. Netflix needs to be seeing more than just another company or website offering movies to watch. Other competitors are offering similar products so Netflix has to continue to differentiate itself in whatever way possible and profitable.






Tuesday, 27 November 2012

Targeting the female consumers

Women are responsible for the majority of shopping in most of the world economies. The female consumers are usually the one’s purchasing the grocery, cloth and school supplies for the kids. But the role of that that the women consumers play goes deeper than simply shopping for the household regulars. The role that the female consumer plays in the economy as developed over the years and marketers are beginning to understand the importance of the female consumers in the market place. According to Kelly Westman, “Today's woman is sophisticated, educated, savvy and, most importantly, more independent than ever before”.
MasterCard Canada conducted a detailed study of 2,088 women that explores their attitude and behavior over their lifetime. The findings identified 5 life stages of the female consumers: Emerging Consumers, New Earners, Moms, The Established and Silver Spenders.

The key findings are as follow:     

  • Canadian women are cast in many financial roles through the course of their lifetime, and those roles shape how they spend, where they shop, and how they feel about their finances
  • At each life stage, women's economic circumstances are markedly different and their behavior and attitudes as consumers change.
  • Canada's most powerful female consumers are the New Earners. Simply put, working full-time equates to more disposable income.
  • Motherhood is the turning point that transforms women from individual spenders into the Chief Purchasing Officer of their households, a role they embrace.
  • Indulgences: when asked what one thing they would always spend money on to treat themselves, women were most likely to say a food/restaurant purchase (25 per cent), followed by new clothes or shoes (14 per cent). Among Moms, simple treats like coffee in the morning (nine per cent) or a magazine or book (eight per cent) rise in significance

 Another major survey, recently conducted by market researchers ACNeilsen Panel Track and Hardliners, an electronic news service for the home improvement industry, indicates that women now make 80 percent of the decisions about where to go shopping. Women  love to shop but it is important to understand that it is not only the purchase that women love; it's the shopping experience itself that make them tick. Most Companies are finding ways to appeal to women consumers while others are struggling to find their footings and as result women are still underserved in many consumer categories.  The companies that are capitalizing on the opportunities to satisfy the women consumers are the one’s who understand the things that makes them tick. Women consumers, more so than men, care about whom they purchase from. Women will pay a premium for a product or choose to shop at a particular store if they feel that the business owner is trying to make a difference in the world. Most females will support a retailer or identify with a brand if they feel that they can trust the company and its products. Once they find a store that they feel comfortable dealing with, they are loyal supporters. Jennier Reed, vice-president of public affairs says, "Canadian women generally embrace their role as important drivers of the consumer economy

Woman, none the less, aren’t hardwired and they are enticed by different taste. "Advertising to women is about learning the truth, and the truth isn't about the product- it's about the person using it," wrote Joanne Thomas Yaccato, president of the Thomas Yaccato Group in Toronto, in her bestselling marketing book, the 80% Minority (Viking Canada, 2003).
Women spend more time and put more effort in their shopping habits than men do. Women spend a greater deal of time seeking out bargains and deals. Working with a limited budget, women consumers are the ones that find the means and ways to manage the household. Jennier Reed, vice-president of public affairs says, "Canadian women generally embrace their role as important drivers of the consumer economy. Understanding women consumers and targeting them successfully takes good market research, good marking and the offering of quality products.

Tuesday, 20 November 2012

Canadian Own vs. Internationally Own

The Canadian economy is one of the most stable economies in the world. Although Canada is sometimes seen as the smaller cousin of the United States, Canada has always been proud of its own achievements. There is countless number of proudly owned Canadian companies around the world today. In the case internationally owned companies in Canada; it has always been matter of political debate. Nonetheless, the paradigm of free trade as old firm. Today, Canada’s has one of the most of diverse population in the world, and this diversity is also present in the business sectors.
Some in Canada will argue that too much foreign own companies are bad for the economy, while others will argue the opposite. The definition of “foreign owned” can also be a matter of debate at as well.

Despite the concerns of some, the Canadian economy has a large number of foreign owned companies competing with those locally owned. Many would say that the foreign companies are actually doing better than Canadian companies, at least in some sectors. The retail sector for example comes to mind first because of the number large American retailers in Canada. Large establish retailers like, Home Depot, Lowes and Wal-Mart are all top performers in the Canadian retail market. Many new foreign retailers are also looking to get into the Canadian market. Stores like Ann Taylor, Nordstrom and Target are set to establish business in Canada, following the footstep of J. Crew and Marshall that came to Canada in 2011. The impact of these companies coming to the market is seeing in the closing down of many companies that was considered Canadian. Most recent was Zellers, which is being converted to outlets for Targets.

Canadian market is getting more appealing to outside companies and more foreign business will be looking get into Canada. A number of things is contributing to the appeal of the Canadian market are; the increase in value of the Canadian dollar, Canadians now have more disposable income, There is less competition in Canada and the retail market in Canada is growing fast. The US retailers, also doesn’t have to do much advertising cause they are already well known in Canada. No matter which side of the flip coin you’re on, the main concern is the state of the Canadian economy. If the foreign companies are benefiting the economy then by all means they should be welcome to Canada.



Friday, 9 November 2012

The Banking Sector of Canada


Canada has a very stable and well run financial sector, which heavily regulated by the Canadian Government. The strength of the Canadian economy was tried and tested during the most recent depression, but it stood firm.  America, who has a more “hands off “, approach to their economy, paid the price. Unfortunately, many other countries around the world also had to pay the price. The thing is what must acknowledge is that the financial industry of a country is different from other industries and must be paid close attention. It’s easy for companies to abuse policies and take advantage of customers for profit. 

The financial sector in Canada has number of different financial institutions which provide a number of financial services. Canada has about 76 different Banks, some more recognize than others. The major banks in Canada, more popular called the big five are; Royal Bank Canada (RBC), Toronto Dominion bank (TD), Canada Imperial Bank of Commerce (CIBC), Bank of Montreal (BMO) and the Bank of Nova Scotia. Canada’s big five banks are all classified as schedule 1 banks and they are among the strongest banks in the world. The banking sector of a country is very complicated and involves allot of know how to operate. All of Canada’s’ big five banks have large asset base, and they have the necessary people that can operate them successful. Another major reason not be overlooked is that Canada’s banks are largely capitalized when compared to other countries.

Canada with so many strong banks and other financial institutions, like credit unions and mutual funds companies, has made the industry very competitive. A competitive market is good for the consumers and is vital to any country’s economy. However, being much regulated, the banks in Canada have specified markets and boundaries of operations. None the less it does not by any means reduce the competitiveness in the Canadian financial sector. Canadian consumers are looking basically for three things from a financial institution, these are; a place to grow their money, a source of capital and provider of financial advice. A consumer will likely walking into a financial institution with one of those three things and there mind or all of them.

Customer service is still a big part of the financial sector and consumers are expecting the best services when it involves their hard working money. All the banks recognize the need of quality customer service, none so more TD banks, which well recognized for its customer service. Banks in Canada have to structure their service in particular ways that beneficial to consumers, within the law and profitable to them. Seeing that all the big five banks of Canada are operating on the same platform, you have to wonder how they separate themselves from the competition. Again customer service is the key in the banking sector of Canada. The reason is that customer service in the financial sector is more detailed and involves much more than just a smiling and having a nice voice when talking to customers.  Consumers are looking for profession advice to make important financial decisions. Knowing that financial information can be complicated and hard to understand, banks must find ways to convey the right information to customers.



Wednesday, 31 October 2012

Bell, Telus and Rogers Competition

Canada’s Radio-Television and Wireless Telecommunication environment is very interesting to say the lease. In terms of market share, the big three as they are commonly known, Bell, Telus and Rogers are all well established companies in Canada. Wireless market share for these three companies in Canada are, Rogers Wireless 35%, Telus Mobility 28% and Telus Mobility 28%. Smart Phone market share sees Rogers in front with 41%, Bell with 28% and Telus 31%. However, a share in particular markets doesn’t represent the general size of a company. Diversification is the name of the game and some companies just invest and compete in different market.

Bell Canada Enterprise (BCE) is Canada’s largest communication company. Its multimedia division, Bell media, owns 28 television stations, over 30 radio stations and a number websites including simpatico.ca web portal. The size of Bell Media has made them target for accusation of many of the smaller companies. Bell uses it size to its advantage and any company in its position would do the same. But the fact remains that Bell size and penetration in the market put rivals at a disadvantage. Large competitors like Rogers and Telus are quick to point that out when things like broadcasting rights and negotiations with Bell doesn’t pan-out as they feel is fair.

Rogers is a well establish wireless telecommunication company and are the main competitors to Bell Canada. Rogers Wireless is the largest communication provider in Canada.  Brand names Fido and Chatr are under the Rogers logo. Rogers is also Canada’s largest cable television cable provider. Rogers is very diverse at the moment and isn’t afraid to enter into new related market. They have recently introduced their Home Monitoring service to its customers.

Telus Communication is the latest of the three companies to come onto the scene. A few acquisitions and mergers, over the years have fast-forwarded the growth of the company. In 2008, Telus introduce Koodo mobile, which strategically introduce to cater for its younger customers. Telus tries to distinguish itself from its competitors in whatever little ways it can. Telus is often recognized for its customer service. Telus attempts to get the little things overlooked by the other two big communication companies.

To say that the Canadian Communication industry is very competitive might be of a stretch. After all, Canadian pays some of the highest phone and communication bills in the world. Many might say its fault of the large greedy Companies who are driving the prices up, while others will argue that it’s the high demand from customers that driving the prices up.
           
             



Thursday, 11 October 2012

TOYOTA

Toyota is a well establish company in the automobile industry and it strive itself on excellent operational procedures. Toyota markets vehicle in more than 170 countries and pride itself on its unique marketing strategy, structured around quality maintenance and its method of operation.  Each car that is made at Toyota has already been purchase. Toyota only makes vehicles that have already been order by its customers. By doing this Toyota cuts down inventory cost as well as any associated labor cost to do with inventory. Parts for the cars arrive just in time for them be used in production. The system is well organized and efficiently operated at Toyota. Intelligent mechanical equipment make light weight of task which would others wise take many days to complete by hands. Some structured task like welding and painting are done by machines.

 
                                  A video on Toyota’s production system

The work area at Toyota is very well structured and it facilitates the flow of production. Each section is has a job to fulfill in the production process.  Toyota is also big on safety and following procedures to avoid accidents and mishaps. Toyota has one of the most successful production systems in the automobile industry and it has been recognize with many rewards. Day to day operation is closely monitored as Toyota tries to maintain quality in products and operations. Toyota has been around for long time and his able to operate a state of the art facility. Toyota has also received the ISO 14001 for being environmentally conscious. Toyota's main aim is to have sustainable long-term growth, while staying focus and building on their differentiation strategy. Toyota as showed commitment to the environment, by attempting to create a hybrid model for every car they sell on the market. Toyota products differentiation and pricing strategy make the Company quite distinctive in the market.

The Company is determined to use a pricing mechanism that will give it a competitive edge over its main competitors. Toyota has taken a bold step in being a leader in sustainable development. This position will need some innovations which translate to expenditure. Toyota is recognized and symbolize with quality. Toyota uses various marketing tools wisely in order to create their image in consumers mind. The quality and prices of Toyota's vehicles set them apart from competitors and as gained Toyota allot of loyal customers.

Friday, 5 October 2012

McDonald's

McDonald's is a part of the fast food industry and is operating within a competitive industrial environment. Fast food restaurants represent one of the largest segments of the food industry with over 200,000 restaurants and $120 Billion in sales in the U.S. alone. Fast food restaurants, also known as quick service restaurants (QSRs), are noted for their short food preparation time.


Since late 2006, the fast food industry's growth has been slowed by soaring food and energy prices as well as, the increase in health conscious consumers. The high prices of commodities, combined with the housing slump and a weakening job market are taking a toll on restaurant spending worldwide. The same food and energy inflation that has eating away at consumer spending is also taking a bite out of the company’s margins. Fast food Restaurants have navigated this difficult landscape with varying levels of success. .  However, the economic recovery will bring consumers back to fast-food restaurants

Although McDonald's is the clear leader of the fast food industry in terms of revenues generated and restaurants established; it faces competition from other fast food chains, which are introducing new products themselves. Here in Canada, Companies, like Burger King, Subway, Wendy’s and Tim Horton’s are strong competitors to McDonald's faces competition from other fast food chains, which are introducing new products themselves. A major direct competitor in the (hamburger-based) fast food industry is Burger King which is the second largest hamburger fast food chain in the world. Although more of Burger King’s restaurants are franchised than McDonald’s restaurants, Burger King Franchise revenues trail behind that of McDonald's  mainly due to McDonald’s size advantage. Wendy's is the third largest hamburger fast food chain. It has a lower operating margin that McDonald’s, but is still very popular in Canada.

McDonald’s is one of the most successful companies on the planet. There are more than 1,400 McDonald's restaurants in Canada employing more than 77,000 Canadians. McDonald's operates over 31,000 restaurants worldwide, employing more than 1.5 million people. McDonald's makes money by operating its own restaurants and franchising to third parties. McDonald's targets a mass majority of customers as they do not aim to gain the attention of one particular audience in particular. Their goal is to entice and draw in all possible customers regardless of age, income, nationality, sex or lifestyle. . McDonald's caters to all their consumers’ wants and needs by offering fast efficiently prepared meals with customer preferences. They are willing to do everything within their natural capability to meet a customer's expectations in order to make the experience as great as possible and to encourage follow up visits


McDonald's prices its products at a relatively low price. They attract customers by using their speed in service as opposed to quality in the product itself. McDonald's may not be the best tasting nor most healthy, but they are the most popular. They also focus on promotional pricing where they incorporate many deals and coupons that customers can use to save money while McDonald's continues generate revenue




Thursday, 4 October 2012

AMAZON

Amazon is a great example of a modern day trend setter in the internet revolution.  Amazon started in the United States and as grown into a multinational electronic Commerce Company.  As online retail leader, Amazon has separate retail websites in countries like Japan, United Kingdom, Italy, Germany, Canada, France, China and Spain. Amazon is also likely to launch websites in other developing countries around the world.

The introduction of Amazon.com has change the retail environment drastically. Before Amazon, retailers who engage in E-commerce had an easy ride in terms of direct competition.  Amazon has brought competition to the door of many companies.  Amazon websites as made the market environment more competitive because it has reduced market boundaries. By Bringing products and offers from many different companies, Amazon has provided more options for customers.

Amazon has come a long way from the original dream of just being an online bookstore. Amazon does not spend allot on commercial marketing and has there personalize and direct marketing to thanks for their success. Most customers who shop online would have shop at an amazon website at least once.

Amazon is like one big online retail mall at the fingertips of shoppers around the world. Customers can find just about anything on Amazon at the lowest price around.  Amazon has partnered with allot of companies, like Target, Timex Corporation and Sears Canada to name a few.
Competition is good for any retail market and Amazon has made the online market very competitive. Customers around the world are benefiting from cheaper prices due to Amazon involvement in the market. 


Friday, 21 September 2012

APPLE AND SAMSUNG

Apple and Samsung are considered to be two of the most dominant force in the technological industry. We have seen as of the late, these two companies really going at each other in every corner of the market. Seeing Apple release the Ipad and Samsung introducing there version with the Galaxy Tablet. Both companies are quick to release new version of their devices, trying not be out down by the other. I myself is still deciding on which new phone to get, the Iphone 5 from Apple or the Galaxy S3 from Samsung.

 
         Fox Business news video on the Apple vs. Samsung saga

Both apple and Samsung has their own loyal customer base around the world. This technological rivalry has also seem to escape the realm of the just business rivalry to a rivalry between countries. Apple being a American company and Samsung a South Korean multinational conglomerate company. You would have surely being aware of the disputes and lawsuit battles, between Apple and Samsung over product design and other patent Infringement recently. Apple as accused Samsung of copying its product ideas, instead of coming up with their own concept and design. Samsung also have also slapped quite a few copyright infringement against Apple in a number of countries.

Seeing how profitable and lucrative the technological industry is, both companies are willing battle and go after each other anyway possible. There is allot legal issues and complicated laws in the technological industry, which also varies from country to country. As new technology; like mobile Application, continues to developed, the borders of international boundaries becomes more invisible.To say that lawsuits and legal issues between Apple and Samsung are bound to continue is an understatement.

Apple has been successful in past due to their market approach and the creative my mind of their late founder, Steve Jobs. Apple as strategically structured their product design and product release into the market, which as work very well for them. Apple is also considered to be one the most respected companies when it comes to quality in the world. Samsung, who presently has the largest smart phone sales in the world is no lightweight themselves. Samsung has the resources and capital do as they please and are well known for flooding the market with their many products.

The technological industry will continue be competitive as the customer demands for technology continues. The battle between Samsung and Apple will continue until one or the other loose pace and fall behind, like what happened to RIM and their Blackberry devices.





Friday, 14 September 2012

COCA- COLA VS PEPSI COLA

Coca- Cola and Pepsi Cola has one of the longest running rivalry in the world of competitive marketing. Popularly known as the “Cola Wars”, these two companies are well aware of each others presents in market place to say the lease. It's hard to mention one without mentioning the other, because they are so synonymous with each other. For many years, both Pepsi and Coca cola have dominated the soft industry with little or no competition besides each other.  As two of the most recognized brands in world, Pepsi and Coca-Cola has establish them well as household names.

Looking to their marketing strategies we can see why these two companies stay relevant and profitable year after year. Both companies are continuously reinventing themselves and coming up with new ways to appeal to an every changing market. Both Pepsi and Coca-Cola strive to position themselves as the cooler brand. You can find countless Ads and many celebrity endorsements for both these brands on TV and across the internet.



Sports, movies and music, are major means by which these two Companies reach their target market. Pepsi-Cola for instance as sponsored the NFL Super bowl halftime show, the FA cup and the X-Factor television show. On the other hand, Coca-Cola has been sponsoring the American Idol, Nascar racing events and they are also longtime partners of FIFA. Historically speaking, Coca-Cola mainly centers their Ads on the family and fun, using slogan like, “Open Happiness” and “ Life Good”. Pepsi-Cola is known for focusing on Individuals and the users of the drink. Pepsi has for instance, a number of Ads depicting celebrities choosing Pepsi over Coca-Cola.

Using People, events and other things that there target market follow, Pepsi and Coca- Cola have managed to stay relevant and profitable, while expanding their business reach. The Cola Wars is expected to continue for many years to come and these two companies will continue their never ending competition of who is better.