20501034 -Entry 7

All about Strategic Positioning
Markstrat
Article

Since April 1st, we have been playing business simulation game, Markstrat in business strategy class. As a matter of fact, it is very exciting game and the competition that was around this game is far beyond my expectation. Looking back what we did for this game for the first moment of this game, we messed up the game. We don’t exactly understand the manual of the game and we didn’t play the Markstrat based on analysis but sense. As time goes by, we realize we are in trouble. Our stock index rapidly decreased and our market share is getting smaller and smaller. Experiencing trial and error, I realize that this simulation is all about “strategic positioning.”

Strategic positioning is the strategy that corporation concentrates given resources on the target market. However, this strategic positioning is getting difficult and challenged especially in service industry, because customers’ needs are becoming more diverse and it is getting hard to find common in them.

If the company is big enough, it can target various kind of market at the same time. However, if the company doesn’t have enough resources, it’s almost impossible to target various markets. Even though, the company that has enough cash and capacity, it became very hard to keep competitive advantages in every market they launched into. In the worst case, the company could front the fact that they don’t have any competitive power in any market in which our team is. In other words,

Therefore, many times, it could be more efficient to target specific demographics and heavily focus specialized competitive advantages and resources on the target group. Once the company positioned in specific target group in the market through this strategy, the satisfied consumers who were targeted by the company can create new customers in the other market through the oral marketing.

The market that the company concentrates on could be the specific area or particular age group. The important thing is to arrange the very narrow target group and massively focus on.
When Starbuck launched into Korea for the time, they did strategic positioning. They decided highly targeted places, City hall, Jong-ro, Gangnam where most people who have purchase power walk around and Starbucks opened the shop almost every corner of this districts. As a result of this strategy, Starbucks could successfully appeal the luxurious image and high quality and then it was kind of easy to open the business in other district because Starbucks already got a reputation among people.

Of course, this strategic positioning isn’t always successful and it is quite risky to put all the resources into target group. Therefore, the company should have enough time to consider about what their competitive advantages are and how to implement.

20600331 - Entry # 5 A Drought in Australia, a Global Shortage of Rice

Artle Title - A Drought in Australia, a Global Shortage of Rice
Writer - Keith Bradsher

Resource = NY Times
Site=
http://www.nytimes.com/2008/04/17/business/worldbusiness/17warm.html?ref=todayspaper





--------------------------------------


My Summary/ Opinion:

Rice is very important part of life, especially in many parts of South East Asia. Here rice is what bread is to the west. It is a “life food.” For the past six years, the severe drought in Australia has affected many people. The Deniliquin mill, which used to process enough grain to meet the needs of 20 million people around the world, dropped all production by 98 percent. It is a significant drop that has left the whole world in utter chaos. Violent protests are occurring here and there in countries such as Cameroon, Egypt, Ethiopia, Haiti, Indonesia, Italy, Ivory Coast, Mauritania, the Philippines, Thailand, Uzbekistan and Yemen.

Many specialists blame this climate change to global warming. Perhaps it is nature’s warning to take care of her better. Whatever it may be, rice production is very low. Also a plant disease in Vietnam is also affecting how much rice is being shared. More than 90 percent of rice produced is consumed by the country that has it. So this would mean that countries that don’t produce it are in trouble.

People have to do something about it. We should put more limitations on greenhouse gas emissions, or else this is going to make things worse. Climate changes will also produce more intense bad weather, more pest and weed outbreaks, and changes in sea level as polar ice melts. Rivers like the Mekong in Vietnam, Chao Phraya in Thailand and Ganges-Brahmaputra in Bangladesh have changed sea level in the past few years and influenced on the countries’ rice production.

I’m sure that people would develop or find something to replace rice somehow; however, I doubt that it is going to be any time soon. We have to learn to use our resources carefully, or it will have tremendous consequences on our country, economy, and future children.

7. What Makes Ford Different

Original Articles

What makes Ford Different?

Foreign Market opportunity

Good Risk Taker

It capability

Foreign Market Opportunity

Ford most achievement is now going on in South America and Europe. That means customer from South Americans and European that they have good tastes on Ford Cars. One of Ford’s good strategies was that they are trying to know what customers think about Ford Car. They prepare for the international market like Europe and South America that Ford company made overall profit than estimate one. It totally surprised Wall Street’s Stock Market. Ford Company helps American economic system. This result change peoples’ perception about the Ford Car in United States as a patriot car brand. It might have great effect on forecast.

Good Risk Taker

Ford CEO is a good risk taker and stragier to know the threat, opportunity, weakness, and strength. To export their car, there might have some great barrier which is taxation in South America and Europe. They know about their strength that if they use in good opportunity of price competition. They guess the hitting profit. They invest in foreign market to sell their car. As a result, It was totally boomed

IT Capability

In Car business, their car IT capability is so important that most customers check capability of cars when they buy a car. “Mark Bunger, an analyst with Forrester Research who covers the automotive industry, says Ford’s choice of Adams as its top strategist reflects IT’s importance to the company." Every core function at an automaker today is strongly affected by its IT capabilities.” To see the main point in car business, it’s not just car business competition but IT competition.

Reference

http://money.cnn.com/2008/04/24/news/companies/earns_ford.ap/index.htm?postversion=2008042407

http://www.cio.com/article/10501/ON_THE_MOVE_IT_Drives_Corporate_Strategy_at_Ford

St #: 20601011

20600331 - Entry #4 Behind China's Anti-Foreigner Fever

Article Title - Behind China's Anti-Foreigner Fever
Writer - Dexter Roberts

Resource - Business Week
Site -http://www.businessweek.com/globalbiz/content/apr2008/gb20080424_222320.htm?chan=globalbiz_asia+index+page_top+stories







-------------------------------------------




My summary/opinion:

Many Chinese people were angered when they heard that Carefour supported Tibet. They started boycotting the French supermarket chain. Now the winds are blowing towards America as well. At first it began when CNN supposedly made biased reports on the recent protests in Tibet as well as those surrounding the Olympic torch relay. This added pain to injury when CNN commentator Jack Cafferty referred to the Chinese government as "basically the same bunch of goons and thugs they've been in the past 50 years." Although later on he did say that he meant the government, not the people, it did not help lesson the situation.

It is quite fortunate that this has not influenced how American companies perform in the Chinese market; however, many French companies are not doing so well due to the French President Nicolas Sarkozy boycotting the opening ceremony of the Olympics. The Chinese government views foreigners as a threat. They are trying to convince people that foreigners are attempting to ruin the plans of a successful Olympics in China. Thanks to the government, many Chinese people view the Olympics as a “coming-out” party.

China is trying so hard to prove that it deserves to be part of the center-stage that it forgot some common sense. China has put patriotism on the forefront and forgot how to accept criticism. Instead of listening to what foreigners have to say, China has decided to lash out on foreign corporations and put a limitation to what Chinese people can know because it's criticizing the government.

If they keep continue on to do this, it is going to influence how they do business with other major corporations whose culture and opinions will be very different from their own. People, no matter where they are from, should learn to work together despite their many differences.

20601016 Entry # 7 - Here comes another hit: LG’s competitive new phone

World’s thinnest phone

original article:

- LG Electronics Inc. released new black label phone. Many customers are really looking forward to seeing new LG’s new model and expecting its good performances and conveniences.

*Differentiation(Competitiveness) of LG’s New phone
: To win among many industry markets competition, differentiation is one of the best strategies. To get customers attention and make them to buy our company’s product, it is necessarily to have strengths that are remarkably outstanding compare to any other company. That way we can produce lots of profit by appealing at least to certain customers who considers good quality and performance most. In this point LG’s unique ‘handset design’ is good enough to generate a lot of profit in the future.

* Research & Development
: This awesome product “LG’s new black label phone” is outcome of well-done research and development. To make preexistent product better, we should research markets, sales-forces, customer-segmentation, economic trend and so forth. Through these procedures we can upgrade or innovate a product.

* Modification
: LG’s new cell-phone, black label phone is third series after Chocolate, Shine phone which generated lots of profits before. Main concept and components of this new phone are almost same with pre-model; Chocolate, Shine phone. However, LG Electronics Inc. made a little change to it and released it as a new model; it added more high quality and slimmest 5 mega-pixel camera. Most of customers might not recognize it clearly and 100% trust on the new product thinking this is better one since new. This is showing how powerful and important to modify preexistent product and actually release it. Though this, we can save money and needless to say, and generate lots of profit.

* LG’s targeting overseas markets
: LG Electronics Inc. has targeted Europe market first(it will be launched in Europe on April 24) and later is will go around to the rest of the world. Targeting overseas markets will bring lots of profits especially in case of cell-phone product. Because foreign cell-phone markets is not developed yet like Korean markets. Therefore our product might be so competitive. In addition, it is also price-competitive. Moreover, if this product is so successful in overseas markets, it will get lots of good reputation to Koreans and it will naturally be sold a lot when the product comes in Korea. This is another good benefit. In these reasons, LG’s ‘first targeting overseas’ choice is good strategy.

Reference:
http://nexus404.com/Blog/2008/04/06/new-lg-black-label-cell-phone-lg-promises-the-worlds-thinnest-5mp-camera-phone/
http://mobile.dpszone.com/the-third-lg-black-label-phone/
http://www.koreaherald.co.kr/

Student NO.: 20601016

20501034 Entry-6

Toyota Lexus Market Penetration Strategy

In 1989, Japanese automobile brand Toyota launched high ended luxurious car, Lexus in American market. Lexus was the new brand and Toyota didn’t mention their Toyota intentionally in the Lexus commercial. As a matter of fact, Toyota’s cash cow was Corolla and Camry and both of them was regard as very reliable and price worthy car. However, in American thought that Toyota didn’t match with the luxurious automobile brand.

The LS 400 that was the first model of Lexus was $ 35,000 and 16,000 cars were sold. Experts estimated that Toyota barely made a profit with $ 35,000 retail price. However, with this penetration strategy, Toyota sold 63,000 cars and the people who were riding the LS 400 became the valuable oral marketer for Toyota. For the first 2 years, Toyota secured the American luxurious automobile market.

LS400 became kind of symbol in high ended car market and always the top of the consumer satisfaction survey. The doubt American might have about the capability of Toyota suddenly disappeared. And then Toyota increased the price of Lexus.

The history of LS 400 retail price

1989 $35,000
1990 $35,380
1991 $39,000
1992 $42,600
1993 $47,030
1994 $50,370
1995 $51,680

In this way, Lexus successfully positioned itself as a luxurious brand. For the first year, Lexus barely made a profit but in the long term perspective Toyota developed the Lexus brand as the strongest brand in the American high ended car market and now Lexus became star item concering BCG matrix.

ORDEM E PROGRESSO

Pele’s legendary dribbling skills and legendary goals, Ronaldo’s wide open front teeth, Roberto Carlos’ powerful UFO kicks, the samba, the carnaval, the statue of Jesus Christ and the great Amazon river all represent the biggest country on the continent of South America; BRAZIL. One more asset is about to be added on to the long list of “Brazilian goods”. This is energy. As a result of petroleum power, Brazil is being predicted as one the biggest to-be energy suppliers of the world. Ranking their recently discovered oil deposit third biggest in the world, Brazil is expecting to have massive amounts of resources for an energy-hungry world.
Up until now Brazil has been mainly famous for its excellent soccer skills. An endless count of soccer talents have been produced from Brazil and seems like every four years, the World Cup is filled with new Brazilian soccer genius who will show that lively, Brazilian soccer spirit over and over again. Just when we thought it was over after Ronaldo lost his moment in the World Cup, Brazil, amazingly enough produced two of the most genius players on the soccer fields presently; Roberto Carlos and Ronaldinho.
Just like Brazil’s soccer game, it seems like Brazil’s economy is not going to give in when it is being challenged by the environment of a torn continent where socialism is slowly creeping its way into the minds of many South Americans.
Energy is the most precious thing that our present world I quickly running out of. Energy gives this industrialized and computerized world its air to breathe. It keeps it alive. Because of this crucial responsibility that has been now bestowed unto Brazil, it should be capable of and start managing these resources, not only for the good its own country but for the good of the whole world. Brazil must make plans in advance as to what steps it will take to use this resource in the most efficient way possible and also it must create a safe environment for the investment and value of this resource.
Like all natural resources, the one in Brazil will also dry up. What Brazilians should focus on right now, is the conservation and efficient use of this product so that it would benefit everyone and lead to a more stable world. Just like the words on its national flag, Brazilians should strive for "order and progress".

http://www.msnbc.msn.com/id/24185233/

Entry #6 (20100656)

What Has to Be Considered in Car Business?

What Part of Car Most People Care When People buy Car

Original Article

It is so important in car business to know what people want. In business strategy, it is called as tarketing. Now a day, most people prefer to pay more if car has safety detector which is warning for the blind spot. Many of luxury car brands attached safety detector to their selling cars. That is the most reason that people buy luxury cars.

Differenciate in Car Business

Most car businesses competite with their differenciation, such as pedestrian-sensing detector, panoramic sunroofs, rear-seat entertainment, and satellite video. They most consider about the safety. Most People care about their gas tank size for fee. In car business, it is important to check how much gas has to be spend to drive 100 miles. As people know, gas fee will cost higher than car price after several years. Good car needs to have good quality of gas to drive. It is good way to differenciate not just facility and safety but also gas tank.

Technology and Design

Car business consider most part of techonology what they have. Most part is the engine. They also consider car design. Now a day, car design also choose price of car. For example, Hyun-Dai company product many cars which has same engine with different design. They just put different name on car by design of car.

My Opinion in Car business

My opinion in car business is that most people buy their car in the off-line because they want to check car which is check for the damage of car. However, if car company give customer insurance to sell the cars. Even, on-line car business could work much better. For now, most used cars are selling on the internet. For latest cars, people usually buy them by off-line. Car business should differenciate their service of car after service not just ability and design to compete with other car companies.

Reference

http://www.msnbc.msn.com/id/24159301/

ST #: 20601011

20601016 Entry-6

Which one will be better: Casual or hardcore?

original article

+ Research on the market.
- In doing research for generating maximum profit, knowing main customers is very important. We should find out which customer is majority of all or which customers are willing to buy at high cost. Also, we need to know what the customers are considering most for example, higher, quality, lower price. As there is saying “The beginning is the half of the whole.” A market planning by customers needs is the most essential thing. That way in the long run your company will be more successful and improved.

+ Analysis on game industry
- There are three main game players which are Nintendo’s wii, Microsoft’s xbox360, or playstation3. As we can assume, a target that we should aim for the game industry is teenagers. Who are they? Most of them don’t want to think seriously or study hard on anything, so usually they pursue games that really simple. In this point, to get teenagers attention, making games simple is most important.(simplicity) In the article, the reason of wii’s dominant selling in the market is; Nintendo’s wii was focused on casualty whereas the others were focused on hardcore. In this point before you start a business you should find out who your customers are and what they might needs.

+ A tendency of characteristics of game
- As we get something more, we want more and more of it. As same with this in terms of game industry, we want more virtual, exciting, stimulus visuals as it fills up our desires little by little. Therefore, in the future, games will be turned more stimulus, violent, and virtual. While teenagers(main users) playing games, they might be influenced by these tendencies of games. Therefore, there is chance that it will bring about some social or ethical problems.

+Future game industry
- As technology has been developed so much, we could enjoy our leisure. Therefore, game industry is also will grow in the future. These days, people do so much care about health(so as to be called)”well-being”. I think a game which we can enjoy by actually using our body would be popular in the future. How interesting a connection between game and sports!

reference:

http://us.wii.com/

http://www.nintendo.com/wii

student NO. 20601016

Professor Google

Prof. Google. Our economics professor refers to the mega search engine www.google.com as “Prof. Google”. If you quite don’t understand opportunity cost, go to google. If you are finding it hard to comprehend all those graphs, go to google. This is how much the average person depends on this search engine to solve their problems. Because even professors are suggesting them to. Google is one of the most biggest serach engines presently existing giving access to millions of people all around the world to valuable online information. It requires a few steps to effectively use this tool to acquire all different types of knowledge. Its casual design and free ambient makes it friendly to many people who would rather a more relaxed view. It is unlike the design of yahoo which portrays a formal, systematic look and other korean sites which are too clogged with all sorts of information and links to different places. Opposed to that, google has a more spacey juvenile design. This also might be another reason for its popularity. Giving it a young appeal.
Google is not only a perfect site for valuable information, but it is also a perfect site for the thousands of people who are tired of all those clogged, uptight sites that just make one dizzy at the site of it.

20100656 Entry#5

20501034 - Entry 5

Original Article

Glaxo's Price Strategy

Based on Value

Zantac is the most famous product of Glaxo. Before Zantac came, the market was dominated by SmithKline's Tagamet. As Glaxo launched the market, SmithKline lower the price as much as 20%. However, Paul Girolami, the president of Glaxo decided to put Zantac in high price point because it is much better than Tagamet in many ways. When Zantac came to the market, the price of Zantac was 56% more expensive than Tagamet.

In addition to this, they set the marketing strategy with Roche, marketing partner firm in USA, to notify its excellence. As a result of these effort, the benefit of Zantac was broadly notified. Especially the doctor who prescribed the Zantac had seen that the patients who take the Zantac didn't feel pain anymore. Moreover, the patients doesn't need to take any more stomach operation. Therefore, doctors could recommend the Zantac with confidence.
This strategy was not the option unless they have strong confidence about their product's excellence and marketing capability. However, Glaxo proceeded what they believed and the consequences was proved as a great success.

Zantac's case could be the wonderful model of value based price strategy.

5. Warning to the U.S economy

Original Articles

Warning to The World Economy

As people know the truth about American economy related to many other countries. If U.S economy going down, it could cause inflation and economic chaos. Many countries depend on dollar cost. Most of U.S. economy problem caused by amid housing. People lent money from the bank to buy a house. However, they do not have ability to pay back. Federal Reserve Bank takes their house instead of money. It affects U.S. dollar value. As U.S. economy going down, dollar is cheaper and cheaper. It is going to cause inflation. Federal Reserve Bank should have strategy to defense U.S. dollar value.

Economic Growth

U.S. 0.5% growth

China 11.4% growth

Japan 1.4% growth

Canada 1.3% growth

India 7.9% growth

Russia 8.1% growth

As people can see the result. U.S. economic growth is too slow. "Many private economists and members of the U.S. public believe the country has already fallen into its first recession since 2001. For the first time, Federal Reserve Chairman Ben Bernanke acknowledged last week that a recession was possible." When FRD trying to limit the damage, they lower the interest rate to find their money. Their most problem started at subprime mortgage. They now have to consider their economy to rise up. U.S. economy already experience Great Depression. U.S. economy affects most of countries economy. It is now not just U.S. economy but all around the world economic problems to limit the inflation.

ST #: 20601011

Referencese

http://money.cnn.com/2008/04/09/news/international/world_economy.ap/index.htm?postversion=2008040910

5. Threat to Netflix&Blockbuster(Series2)

original article

1) Strength and weakness of VOD, Movielink & iTune

- There has emerged VOD(Video-on-demand) after Blocbuster&Netflix video-rental business industry. VOD is kind of mixture of video-rental service and telephone service. Through this system customers don’t need to move to a video-rental shop anymore. Only thing customers need to do is click a button and choose the movie that they want to see from the list.

Secondly, Web site Movielink is another factor which is intimidating preexistent market. So far, Movielink had offered movie-downloads as rentals, which, like the VOD model, the customer could watch for only 24hours. However, they improved this problem by offering download service. Therefore, customers can have movies exactly same as they buy them in the DVD store. But they have some problems like piracy issues, uncertainty of success(risk taking), technologic problems(hard to transport the download movies from computer to the TV screen). The more people download movies from Movielink the more the piracy will be prevalent. It will bring about patent problems. Since this is new trial of the business industry, there are lots of uncertainties to success. Movielink’s higher download fee than iTunes is another weekness and things to overcome to grow larger.

Lastly, it is not yet free from technologic aspect. To watch movies on a television screen, users would need to have Windows Media Center, which is designed to connect to a TV, or special jacks and cables. This technology has not come into wide use yet. Also, it requires customers to study and think to get used to it.

Another force that Blockbuster and Netflix have faced is the entrance of Apple into the movie download market. As we know, Apple’s iTunes is already a huge unchallenged company, so just its coming to the business could be a heavy burden to them. On the other hand, there are some problems they are having. First, it’s time consuming to download movies via that service. Because, even using a broadband Internet connection, high-quality movie files, which generally surpassed 1 gigabyte in file size, required in the neighborhood of 90minutes to download completely.

Moreover, it takes certain time to make customers to adapt to the new technology. Also, they should spend some time to learn how to use the system. In brief, it’s more complicated than just buy DVDs and watch it. Lastly, many piracies will be prevalent. Then, naturally it will cause downwardness of Movie industry.

2) Its effect in the future to Blockbuster&Netflix Market

- I don’t think nor Blockbuster and Netflix will keep there market share in the future unless they innovate present system and organization. Because, as time flows lots of new entrants will be coming into this industry with better contents. Since science and technology are developing fast these days, position of the bricks and mortal industry like Blockbuster is getting smaller and they are now facing crisis. To survive in this tough, competitive environment, Blockbuster and Netflix should innovate on their present structures and ideas to catch up changing trends.

3) Different point of view: Would the Netflix model work in Korea? Why or why not?

- It will be little bit tough for Netflix to succeed in Korea. Because, most of environments and circumstances are different between US and Korea.

Firstly, Korean technology has developed so well, so there are many ways to download movies and even dramas at low cost. For example, Korean internet site ‘we-disk’ offers 10MB/1Won download service. Also it helps us to download a movie within 5minutes. It’s really convenient and time-saving. Therefore there is no room for Netflix to come into Korea market.

Secondly, Korea online DVD&Video rental industry is already fixed firmly. It’s already full like Cashcow of BCG Matrix. Therefore we don’t need to use foreign company.

Thirdly, it’s really easy to access offline store. If we leave home, we can reach DVD&Vedio rental store just by few steps. We don’t want to spend our time and labor searching on the internet to rent DVDs via online.

Reference:

Management Information System -Pearson Education- P121-123

http://en.wikipedia.org/wiki/Video_on_demand

http://industry.tekrati.com/research/news.asp?id=7746

student NO. 20601016 entry-5

cool shoes?

GEOX respira. Means “GEOX breathe” in spanish. These are the first words you see when you go into www.geox.com. Geox is a shoes and clothing manufacturing company that manufactures shoes that actually “breathe”. With the original idea developing from an arduous hike and a visionary who believed in his creation, Polegato (founder and president of GEOX) came up with an innovative product in an industry that was slowly starting to depend on bizarre models and name brand to survive. As GEOX, which was previously only a shoes company, expands it is now trying to grab a piece of the athletic shoes market pie.
GEOX shoes are normal shoes but with a touch of comfort in them. These shoes actually let your feet breath and cool down. GEOX shoes are made similarly to any normal type of shoe except the sole. The sole is a perforated one that allows air to ventilate through its holes but at the same time leaving all the water and liquid substances out of the shoe. Making it a cooler shoe. (As in decreasing the temperature and stuffiness inside the shoe).
But making a cooler shoe is quite hard these days as shoes, not only dress shoes but even athletic shoes are all becoming “apparel”. Nike’s Air Jordans, which were specifically designed for maximum comfort and efficiency on the basketball courts, are now being worn by consumers with no experience or interest in basketball. The Adidas “Samba” were also designed and manufactured for soccer players and people who play the game of soccer. However this shoe has become more of a casual wear to match with a pair of pants and a casual shirt. My point is that many of the athletic footwear that were once designed for athletic purposes are being used for a different purpose. And these companies are making profits because of their “looks”, not because of their comfort and strength on the soccer field.
As GEOX tries to jump into the athletic footwear market, GEOX should consider its apparel more than it is doing right now. From what it looks like, GEOX is investing zero research on fashion and the way the athletic shoe looks. My first impression when I saw the GEOX atheltic shoes reminded me of a “Nice” instead of a Nike, an “Adidos” instead of an “Adidas” and a “Fuma” instead of a “Puma”. In other words cheap and not cool.
In Geox’s attempt in marketing its “cool” shoes, GEOX should probably focus more on the “coooool” that would come from the consumer’s peers mouth rather than the “cool” that the wind would bring.

http://www.businessweek.com/magazine/content/08_15/b4079058287126.htm?chan=top+news_top+news+index_global+business



Entry #4 (20100656)

4. Nolbu's business

Original Articles

NolBu's Business Strategy

1. Tarketing

2. R&D

3. Franchise

One of the famous restaurant in Korea is Nolbu Bossam. They started their business at 1987 with only 15 ft size of restaurant. However, they are now big restaurant company in korea which has many franchise all around in S.Korea.

Tarketing

When Nolbu CEO started their business, their customer tarket was worker who go to big company. They also consider the customer age about 30~50 who usually has money in their poket. They also tarket the korean foods for customer. Nolbu CEO knew that most Korean workers like bean soup, Kimchi, and meat. They started as sole proprietorship which is entrepreneur.

R&D

When Nolbu company grow bigger and bigger. They invest their money for new product to be competitive and Interior design for the luxury atmosphere. As people know, when people go to Nolbu restaurant, they told that Nolbu's facilities are clean and shiny which has good looking. They made good first impression to the customer, and it affected as strength of their company. They also invest to the new product. When Nolbu started their business, they only has menu for the Bossam which is their star product. Now, Nolbu menu has more developed and products. Nolbu invest R&D for only korean tradition food. They now have Bossam, Dolsot bab, and Budae JJigae. All of this product made big hit in restaurant business. They also invest to get people's opinion by event.

• New Products
• Interior Design
• Internet Business

Franchise

One of the reasons to be growing big company that is franchising. Especially, Nolbu CEO earns their most profit from their franchise. Because of brand name, people recognize their foods and eat their food. Their brand name is so strong. It became one of the famous restrauant in korea. Even, many korean, who lived in outside of Korea, also know the Nolbu brand. They now tried to open their market outside of Korea.

Reference

http://month.foodbank.co.kr/etc/search_view.php?secIndex=1036&page=4&section=&serial=&keyfield=all&key=

St #: 20601011

20501034 - Entry 4

TGIF

Original Article

Just 10 years ago, having a meal in family restaurant like TGIF, Outback, Marche is regarded as one of snobby life style. Once, some woman who loved to go to family restaurant enjoying fancy life style was very much criticized and named “된장녀”. However, we don’t criticize anybody who has a meal in family restaurant since more and more people are experiencing and getting used to these kinds of life style. As the pie is getting bigger and bigger, family restaurants are competing each other to have more market share. In this situation, TGIF has been shown as leading company. Let’s see how they did.

External environment

Social factor
Increasing the number of career women
Two career couple
Showing more interest in recreation
Anti-America emotion

Cultural factor
Improvement of cultural sense
Westernized eating habit
Introduction of western food culture

Economic factor
Economic growth
Globalization
Progress in FTA

Technical factor
Improvement of packaging technique
Technical cooperation with famous brand

Competitors analysis

Bennigans
Bennigans has the second largest market share after TGIF and has as many menus as TGIF does. In comparison with TGIF, it is evaluated as more sweet and spicy. Overall theme color is green and atmosphere is like middle part of America.

Tony Romas
Tony Romas is specialized in rib.

Marche
The concept that Marche is promoting is “World Tour Pursuing the Taste.” People can feel that they are shopping all different kinds of food in outdoor market.

Jungle Jim
Korean company developed the brand by themselves without any technological cooperation. It locates mainly in theater, institution, etc and attract a number of people. However, it doesn’t have crowded impression.

Chillis
Chillis is specialized in American style Mexican food. They consider foreign customers posting certain percentage of foreign staffs. They offer child meny.

Internal anlaysis

Taste and atmosphere
TGIF has extraordinary “Cajun” source, and “Pizzadilla” menu which is popular among customers. The number of menu is also very diverse, so customer can pick some of the menus they would love to have. TGIF is also putting great effort on its bar and have various cocktail menus. Stripe that is made of red and white and American curio makes TGIF’s unique atmosphere.

Differentiated service
Since they opened the first shop in early 90’s, TGIF has been promoted by customers who experienced TGIF’s service. TGIF induces customers to visit again by service and good food that worth more than their high price. For example, TGIF executed “Puppy dog service” that server kneel down to have proper eye contact. TGIF has not only “Puppy dog service” but also physically challenged people policy, service guarantee and clean toilet.

No.1 market share
TGIF has been seen the best family restaurant in popularity and market share. TGIF has been attracting consumers offering coupon, 25% discounts for SK telecom customers.

SWOT Analysis

Strength
Various menus, differentiated service
No.1 market share

Weakness
High price point
Limitation of responsiveness due to increasing consumers

Opportunity
Increase of people who eat out
Possibility of expanding shop

Threat
Aggressive promotion among the competitors
Consumer's diminished purchasing power

4. Who will be the final winner?

original article

DVD-rental business competition:
Blockbuster VS Netflix

1. How successful Blockbuster & its business model
- Blockbuster entered the video rental business in 1985, at that time, only certain customers were using it, but after 20years, it rapidly has been prospered. John Antico is CEO of this company. The rental giant opened 9,100 stores in 25 countries, gaining a market share that has been enjoyed by few companies in any industry.

1) Blockbuster simplified the procedure - using bar code scanner system
Blockbuster equipped each of its video rental stores with custom software it had designed to simplify rental and sale transactions. An automated point-of-sale system uses a laser bar code scanner to read data from items being rented or sold and from a Blockbuster customer’s identification card.

2) Blockbuster’s CRM(Customer Relationship Management) – Knowing customer’s needs on the basis of the record
These data are transmitted to Blockbuster’s corporate computer center. Management uses these data to monitor sales and to analyze the demographics, and rental and sales patterns for each store to improve its marketing decisions. Blockbuster’s success was based on video tape rentals and sales and rentals of DVDs. By 2004, Block buster possessed a 40-percent share of the U.S. video rental market, estimated to range from $7billion of business per year to $9billion; Blockbuster also had video sales of around $16billion.

3) Benchmarking – Analyze competitor and apply their strength to ours
Blockbuster faced a crisis as a new business model emerges to the industry. Unlike Blockbuster Nflix sells products via online. It was sensational and competitive at that time. So, it generates lots of profit. Seeing and analyzing this business model, Blockbuster decided to adopt it to survive in the industry. More commendable thing is Blockbuster doesn’t only adopt other’s model but also restructure their old system by offering “a monthly subscription service for in-store customers”, “a subscription service for video games”, “a trading service for movies and games” , etc. to the customers.
Finally, Blockbuster yielded 100$ million increase in capital expenditures from 2003 to 2004.


2. How successful Netflix & its business model?
- Netflix is one of video rental industry like Blockbuster. Reed Hastings is a CEO of this company. When it first emerged into online DVD rental industry, it was focused on customer’s convenience by giving new way to rent&buy DVDs; via internet. All interactions between Netflix and its customers took place on the Internet and through the postal service. Only thing that customers need to do is make a wish list and click some buttons to order it. Another good thing is that customer could keep for DVDs as long as he or she wanted without incurring late charges. That way, customers feel more secure and comfortable when they use Netflix. It was truly successful. According to Kagan Research LLC, revenues from online movie rentals, which were nonexistent in 1998, rose to %522 million in 2004. Also, total revenue would approach $1billion in 2005 and $3 billion by 2009. As Netflix caught on and its subscription model became popular, Netflix’s gains in market share, from 2 to 7percent between 2003 and 2004, gave Blockbuster true cause for concern.


3. Future of Blockbuster&Netflix
- I don’t think nor Blockbuster and Netflix will succeed in the future unless they innovate present system and organization. Because, as time flows lots of new entrants will be coming into this industry with better contents. Since science and technology are developing fast these days, position of the bricks and mortal industry like Blockbuster is getting smaller and they are now facing crisis. To survive in this tough, competitive environment, Blockbuster and Netflix should innovate on their present structures and ideas to catch up changing trends.

Reference:
http://writer111.blogspot.com/2006/02/blockbuster-beats-netflix-in-service.html
http://www.thelogicofsuccess.com/blockbuster-netflix-innovation-competition.htm
Management Information System -Pearson Education- P121-123

Student# 20601016 entry:4