Xbox One sales prevail over PS4 sales on Black Friday: Surprised?

Week Beginning: 01.12.2014

This year’s Black Friday was a major success for Microsoft, mainly because of the increased sales of the Xbox One. The Xbox was the bestseller on Black Friday and even topped the market leader Sony with its PlayStation 4. This was possible due to huge price reductions and bundles. Originally the Xbox One was available for $500 and then lowered to $400. Finally it was available for $330 to undercut Sony’s PS 4. Although Sony’s PS4 might be winning the video game console war, market share for Xbox is increasing. This year Xbox One accounted for more than half of all video game console sales on Black Friday with 62 percent. Microsoft’s latest system took over 53 percent of all sales, while the PlayStation 4 only sold 31 %. Even the Xbox 360, which came out 2005, had an increase in sales. Although Sony’s system came in 2^nd, their sales still increased by 15 percent. Adding to that the bundles were the main reason why Microsoft’s sales increased. 90 % of all purchased sales on Black Friday were bundled with a game. Interesting to see was also that 55 % of the PS4 customers bought the product for themselves, while 66 % of the Xbox One customer bought it as a gift. All in all Sony’s PlayStation 4 still rules the gaming console market with 13.3 million units sold this year (September 2014), followed by Nintendo Wii U with 7.29 million units and Microsoft’s Xbox One with 6.7 to 7.35 million units sold.

This links to marketing in general and changing market share. We discussed different markets in class and were taught about every brand having a different market share. In this case Microsoft’s market share increased through the units sold on Black Friday this year, which increased the market concentration too, which makes it more competitive. Although Sony is the leader of the gaming console market Microsoft’s sales are increasing immensely and ranks the brand as second on the market. This only happened, because they changed one of their 7 Ps/ 4 Ps, the price. To attract customers they lowered the price and even made the product cheaper than its leading competitor’s product, the PlayStation 4. Adding to that all of the gaming console brands had a strategy to sell more consoles. They bundled the console with a popular game which made it more appealing to the customer. Therefore it links to strategy of the CUEGIS, because Microsoft changed their selling strategy / marketing objectives, which resulted in great success.

 

China`s enonomic growth rate falls

Week Beginning. 03.11.2014


The latest updates show that growth in Chinas secondary sector slowed down since 2013. the current uptated Purchasing Managers Index (PMI) fell to a score of 50.8 from 51.1. Any PMI score over 50 represents growth. Figures also show that the wider Chinese economy is growing at its slowest speed for more than five years now. This is shown by the economic growth rate which is 0.3 % lower than last year. Since the PMI was published last week, China receives even more downward pressure.
Due to this Chinas government have several growth targets. Bejing published measures designed to stimulate consumers spending. This includes relaxing limits on home purchases and investing billions of dollars into Chinas biggest banks. Chinas Central Bank cut certain inter-bank interest rates. The government aims to increase the economic growth to 7.4% this year, which many analyst do not believe in, because the growth ambitions of China are much higher than expected rates in more developed countries. As an example the US economic growth rate is 3,5 % per year. A higher percentage of growth is needed to create enough jobs for the large number of increasingly educated people. The GDP in China is a continuiung up and down as shown below.



This article relates to business in many ways. First of all it links to the topic of Growth and Evolution. A reason why the economic growth rate of China is falling could be the diseconomies of scale. Another reason why this is happening is the spread of globalisation. Furthermore thi artivle also shows the aims and the objectives of the country. This perfectly links to the topic of Organisational Objectives. Objectives always have to be Specific, Measurable, Achievable, Realistic & relevant and Time specific, to work for an organisation. In this case also analyst mentioned that they might not be achievable. China has several ideas of growth strategies, but they need further develpment to succeed. 

Yahoo in Talks to Invest in Snapchat

Week Beginning: 29.09.2014

New York Times posted an article on Saturday, talking about Yahoos thoughts investing in Snapchat. Snapchat is an App that allows its users to share photos that self destruct. This deal has not yet closed, Yahoo still has to decide if they want to be an investor of the company. They did not decide yet, because they do not know if it would be better for the company, if they invest or not. If Yahoo decides to invest they will join other famous investors.
An advantage for Yahoo would be that through the investment in Snapchat, the company would become more relevant to younger consumers. Adding to that Snapchat has much publicity. Last fall the business rejected a 3 billion dollar offer from Facebook.
Although Snapchat is very popular shareholders think that an investment is just another spending spree, because the App has yet to develop any revenue.
Despite the undecided investment question for Yahoo, both companies want to increase their content offerings, and therefore have the goals for the future.

This article clearly summarizes what we have learned in the last few weeks/in the last week in Business Management. Investing in Snapchat could be a great chance for Yahoo, but this could also be a risk, because Yahoo already had made the mistake to invest in a wrong company. We discussed organizational planning tools, which would be used by Yahoo in a situation like this. A decision tree could be used to decide whether to invest or not and which profits or losses the firm makes through that. Therefore they could easily decide if they want to invest.

First Russian woman in International Space Station

Week Beginning 22.09.2014

BBC News posted an article about a 38 year old engineer, Yelena Serova, who launched of on Friday to the ISS as the first Russian woman. This is the first time since 17 years that a woman from Russia was send to space. The last woman at the International Space Station was the astronaut Karen Nyberg from the US in 2013. This mission is a cooperation of the Nasa and Roscosmos (USA and Russia), where the astronauts and cosmonauts will stay at the ISS for six months.

Ms Serova was trained the last seven years for this role. She is the fourth Russian woman in space and at a conference she mentioned that she feels great honour and responsibility for this role and towards the people, who trained her.
Adding to that Serova was asked several times about how she will take care of her hair in the orbit. She replied very cleverly and asked why they were not interested in the hairstyles of her male colleagues. Furthermore some reporters asked how her eleven year old daughter will handle her absence. All in all she said that this was her job and that she prepared for it a long time. This mission comes amid political issues of Russia and the US.

This article shows clearly that women are in business nowadays, but it also states the thoughts of society. Serova was asked several times about her hair and how she will handle it in space, because most of the people in society don't associate a woman with space. I personally think asking these kinds of questions is not bad, but I wonder why her male colleagues were not asked the same questions.
The article of BBC News also links to the current situation of the USA and Russia. That is why I find it pleasing to hear that they are having a cooperated mission. Furthermore this article links to the change if women in society and business. Women are working nowadays, also in mens profession. Although the first woman in space was also from Russia in 1963, people still dont take it for granted.

Burger King Sells Gay Pride Whopper

US TODAY posted an article by Bruce Horovitz about Burger Kings new campaign supporting gay rights. For the 44th annual San Francisco Pride Celebration & Parade the company offers the Proud Whopper, which does not differ from the usual Whopper except the rainbow coloured wrapper saying on it "We are all the same inside". Burger King even saw people keeping their rainbow wrappers. Burger King also sponsored the Gay Pride Parade for the first time, where they sold burgers to participants and passed out Burger King rainbow crowns.

The Senior Vice President of Global Brand Management at Burger King said that this campaign shows who they are as brand and what they stand for. Burger King believes in self expression. their new slogan: "Be your way". Through this campaign Burger King can easily connect with their customers, mainly because gay rights are a strong issue all over the world.

All Proud Whopper sales will be donated to Burger King McLamore foundation, where Burger King gives out scholarships to students.

So far they have only had good responses from customers and supporters saying that it is a great marketing strategy and shows that the company understands the diversity of the topic. If a big company supports gay rights it makes a difference and can chnage minds.

This campaign is a very good investigation and a great way for marketing. Especially if a company like Burger King supports gay rights, people will think differently about it. Ethics are a huge part of business, because companies use donating and ethical business behaviour for marketing. Many companies also donate money to help others and try to encourage others to do the same. I think this campaign is a great idea and should be continued in the future to give gays more support and change peoples mind about this topic. If Burger King support them others will too in the future.

http://www.usatoday.com/story/money/business/2014/07/01/burger-king-gay-pride-burger-parade-fast-food-gay-rights/11903861/

Tunisia's Video Game Business: Digitalmania

BBC News posted an article called "Tunisia's first video games boss's global ambition" by Naveena Kottoor, telling the story of the 31 year old Walid Sultan Midani.
He is the Founder and chief executive of Digitalmania, which is Tunisia's first video game company. He already was interested in video games since his early years of childhood and has a degree in information technology. When he graduated from university he wanted to start his own business, but struggeled with his start up capital, because the Central Bank of Tunisia has a limit on converting foreign currencies to and from dinars (Tunisia's currency). Therefore Walid could not use crowdfunding websites and had to get finacial support from his family. The company had a tought first year. This was mainly, because of financial issues and the political situation in Tunisia in 2010 (Arab Spring).
18 months later, 2011, Digitalmania got a business loan from the BFPME Bank and they could officially launch. Today they have created 34 video games, four of them under their own name. 99 % of their revenue is mainly achieved in foreign countries like Germany, Italy, UK and France. They are still a small business with only 13 employees, but Walid Sultan Midani hopes to expand his company and works towards a successful video game like Candy Crush or Angry Birds.

Walid Sultan Midani's story shows the advantages and disadvantages of establishing an own business and being a sole trader. It also relates to a cultural aspect, because his conditions in Tunisia are not the same as in the MEDCs, due to the Arab Spring in 2010.  I personally think it is an interesting article, because it is the first video game company in Tunesia. It shows every hard beginning of a company and that it is possible to start up an own business with an idea and hard work.

Tunesia's first video games boss's global ambition, n.d. photograph, viewed 7 September 2014,
<http://www.bbc.com/news/business-28837004>.