Archive for the ‘IndustryNews’ category

Starbucks–Why the Starbuck’s Logo Hype ?

January 11th, 2011

Howard Schultz, the owner of Starbucks has a story worth telling. He is a master at what he does and he brought it several key concepts to the marketing world.

He figured out that by providing speciality coffee, he could charge the customers a premium and change the attitude of traditional coffee which was considered “cuppa Joe” , thus bringing in the concept of customer engagement . Unlike the other companies running during the 1990, he outwardly rejected the franchising model and decided to spend the profits and marketing resources on its stores, employees and thereby improving the customer experience.

This lead to word of mouth publicity of Starbucks and created a more powerful brand which has dominated the coffee business ever since its launch. The customers promoted the brand free of cost through word of mouth and the there is a sense of customer ownership of the brand more powerful than any other brand.

gaplogo.jpg

There are examples of companies where logo change did not work – Gap who changed its logo had to revert back to its original logo within a week after massive criticism on twitter and Facebook. So much so, the company even tried a failed attempt  to crowd source the new design to the customers who were annoyed by Gap’s initiative to change the logo.

How the customer would be associated with the new logo is still to be seen.

Getting your car serviced!

April 11th, 2010

Ahem! Getting the car serviced seems to be a very simple task but try getting it done in a populous city. Whichever day of the week you choose for the servicing, you cannot escape the Murphy’s law. Crowded and unmanaged. Every time the service manager would say “please try to bring the car in a less crowded day for a better service”. WOW! I spend lakhs of rupees to buy a car and i spend on maintaining it at the authorized service center because i feel that i will get a good service just because they are “authorized”. ALAS! they are seldom OK. » Read more: Getting your car serviced!

Cost of no CSR!

March 23rd, 2010

how many think that csr is a waste? Coca-cola, the world’s largest beverages maker, should pay Rs 216 crore compensation for pollution and depleting groundwater, a Kerala government panel has said.
The nine-member » Read more: Cost of no CSR!

Microsoft XP to be obsolete soon!

March 10th, 2010
components of hard drive

components of hard drive

Hard Drives will soon be available in a new format which might not run with XP. Currently the drives are manufactured in 512 bytes format which will be replaced by the 4k bytes format. The 512 byte format has reached saturation levels. i.e. it is becoming difficult to reduce its size further. Whereas 4k byte format has scope to reduce the size and increase efficiency simultaneously.
Experts in a discussion said that the industry has agreed to phase out the old formats by 2011. Except XP all other new operating systems are likely to support this new format. Some say that this new drive will still be compatible to XP but the data transfer speed might suffer.
I was » Read more: Microsoft XP to be obsolete soon!

Turbulence in automobile industry..

March 9th, 2010
turbulence

turbulence

After the season of recalls, it is now time for the major players to reshuffle their stakes. The reason may be the unpredicted growth in automobile sales all over the world in the month of February. The recovery of JLR sales have increased the SPI of TATA Motors which in turn triggered Daimler to sell its 5.34% stake. Daimler, also plans to enter India by investing more than Rs.4000 crores for which it had collaborated with Hero Honda. However, the deal was called off. Now, after raising cash from stake sale at TATA, Daimler might strategically enter India and other developing nations.
In another move, » Read more: Turbulence in automobile industry..

China:War against Overcapacity

March 8th, 2010

The largest developing country, China has pledged to improve the industrial efficiencies so as to grow sustainably for few more decades. Chinese officials, after doing a root cause analysis found that most of its fragmented industries were running under capacity because of high bargaining power with few large organizations. In a move to exploit rare and inimitable resources, China will try to consolidate the industrial sectors. It has be observed over the last century that big economies start with small companies but to sustain the growth, big is better. » Read more: China:War against Overcapacity

The rise of Advertisement industry

March 6th, 2010
brand ambassador

brand ambassador

The advertisement industry experienced drastic fall in revenues during the economic downturn last year. WPP, the world’s largest advertising company saw a fall in profits by 11% in 2009. Organizations in all major sectors in order to cut short their losses reduced the advertisement budgets handsomely. It is said that the health of the economy can be judged by the amount of advertisements. If its low then something is wrong and vice verse.
» Read more: The rise of Advertisement industry

Impact of price war in telecom sector

March 5th, 2010

victim of price war

victim of price war


Apart from decline in profits for telecom companies, this price war has also affected the cash rich BPO industry of India. It is seen that because of the declining profits, telcos are reorganizing their contracts with BPOs to get better price points. The cutting edge competition between the telcos have forced them cut their operating expenditures drastically.
Moreover, the volume and revenue per user has reduced against predictions because of people opting for multiple SIMs to make use of the best schemes by various service providers. As a result BPO organizations like Hinduja Global Solutions, Firstsource and others have seen significant dip in their bottom lines in the last quarter. The only party enjoying his war is the consumer. They are just enjoying!
The question is how long will this price war last? Is it time for consolidation as seen in the airline sector a year ago?

Rogues

The patent war: Apple blames HTC

March 3rd, 2010

apple jobs
In a recent statement, Steve Jobs, head of Apple said that HTC had used around 20 of their patented technologies to fuel the growth of its competitors like Google. Therefore they have sued HTC whose products are used widely in the smart phone market. He emphasized on healthy competition which would create more value to consumers by means of better innovation. However, we have seen before that Apple is no saint in this regard. Nokia, RIM and Apple were already in a patent war which is yet to be settled. This case against HTC is just another brick in the wall.
What makes such huge organizations commit such mistakes? Is it an intentional mistake or an innocent mistake?

Rogues

e-commerce vs Me-commerce

February 27th, 2010
me-commerce

me-commerce

E-commerce entered the technology market after the evolution of internet as a medium to communicate. It so happened that this technology was widely used to increase operational efficiency and save costs for the channel partners. The entire e-commerce industry focused on transactions rather than relationships. This feature was one of the key in many unsuccessful e-ventures. Lately, we can see that people are doing online business in a much different way. The influence of SNSs (social networking sites) in the e-ventures have become very important. Microsoft is planning to launch its outlook 2010 which is compatible to SNSs, auction sites like alibaba’s taobao has these features and many such ventures. This concept of making the e-ventures more social is now being termed as Me-commerce! » Read more: e-commerce vs Me-commerce