20400442 Entry 4

In the basement under the offices of founders William Hewlett and David Packard, there is a mistarious room full of giant screens around the wall giving a feeling to visitors they are in some kind of a wonderland. The place is for younger program designers to hang out hoping right ideas would come.
The executives of HP slowly starts to say that they were too busy to make high functional computers and other products to show supreme functionality. As a consequence, HP has became synonymous with complacency and high costs. They said old program designers made technologies and products, expecting customers to buy them. However, top executives come to realize that they are missing something very basic in their marketing, saying "We were missing the DNA of an organization that had its finger on customer desires!"
So the company is trying to support and provide "Innovative Progam Office" as a prototype to feel cutomers' need again having a slogan "The computer is personal again."


My Opinion

How in the world playing in a basement full of giant screens all over the room helps anyone to come up with what customers want?? Reading the article gave me a lesson. I was missing a whole point thinking having a superior advantages over technology can give a company sustainable advantage. I was wrong. The first thing of Marketing was to know what customers want and to fulfill that want... Marketing was setting direction of a company... The room..one of Innovative system to creat Personal system was one of the company's idea to promote their product to meet customers want...

20500356-entry4

How “competitive” became turbulence to market
-in view of brand

Last class, we learned about competitive turbulence. When product successfully makes a profitable market, competitors get to look at the market and come into there. That makes a competition, and companies get to have needs to lower the price down in order to have comparable advantage. That calls the quality down, and then the product fails because of it – that is what we learned.-

Competitors might be turbulence by threatening the brand-power of original product. When companies easily have brand-power when they make new market – by its first-mover product, the success of the market calls competitor, and such of them tend to copy the concept of 1st mover. We call it ‘me-too’ products. They have no creative/distinguishable figure, but just follow the market trend. In case of view, they could bring the market-growth by spreading the product. However, me-too products have a dangerous characteristic.

They can spoil the market itself, then it could be failure not only competitors and themselves. It occurs because, consumers have the image to the market less clear and market has less impact on them. Consumers get to have an image to market by their 1st mover brand. Me-too product makes consumers confused to the brand, and the confusing moves to market itself. It brings the dislike to market, with the fall of demand, and it makes market fail.

We can look at the example of ‘Bi-rak Seekhye(rice nectar)”. 15 years ago, a traditional beverage “Seekhye” appeared to market. Soon it became an impressive trend on beverage market, because there was huge needs of traditional product on side effect of globalization (ex>UR) and there was no product which meets the need. Market size was rapidly grown in 140 times. No sooner as the product made a profitable market, the competitors came. Near 70 companies got into the rice-nectar market, and it brought the whole-market failure. Almost of them disappeared with depression of market, and now there is only 10 companies making “Seekhye”.

Companies use an interesting method to protect their brand – by registering almost of available brand name. When companies launch the product, they register not only their own name but similar brand name also, because me-too product primarily names the similar one to easily follow their concept. The article shows that brand is very important things by the ways of delivering the value of product to consumers, because consumers usually estimate the value by their brand-prefer than product itself. That is why companies put their efforts to ‘branding’.

http://www.adic.co.kr/data/sem/cpr9814/cpr1.html statistics about decline of rice nectar market
http://media.daum.net/economic/others/view.html?cateid=1041&newsid=20020401060147165&cp=donga me-too product
http://www.hankyung.com/news/app/newsview.php?aid=2007032007831 protection of brand

20820007 Entry - 4

China: Top in tourism, too?

China is the country of rich story and culture which attracting many tourists all around the world. According to statistics 132 million people visited China last year and spend 42 billion dollars making it 4th most visited country in the globe. The World Tourist Organization is expecting that it will be no.1 by 2015. Since Beijing won in 2001 to host Olympics it is estimating to welcome 820000 people during it. Compare to Olympics 2000 in Australia it is 2 times more number of visitors. Tourism revenue will be about $183 billion showing growth by 18% up. Many hope that in August it will be busy days for tourist business. The boom will be in the all industries from guest houses to luxury accommodations.

For example, Super 8 Franchise first opened its hotel in 2004 in capital is going to double its location in China. In January it became a member of the Olympic Village Accommodation Service Management Team which is only hotel that won that honor. Many hundred of employees work for it in the Olympic Village where athletes and coaches will stay getting many various services such as restaurant reservation, check mail and others. Also there will be available 11000 luxury high class rooms in the Ritz- Carlton Hotel. Now it has a 2 in the Beijing, one in Guangzhou and first hotel in Shanghai which opened in 1998. It keeping in the secret how much they will earn in revenues but many other hotels already reserved for the 17 days of the Olympics. They will charge from 3 to 10 times their price. As a result it will bring long term economic growth in China.

My opinion

Since China won to host Olympics this year it is a tremendous opportunity for Chinese to promote their rich history and culture to whole globe. Just wining this honor made China known to entire world that every one wants to go China to see Olympics even Beijing’s hotel already reserved due to it. Every one says these days “one world one dream.” Therefore all industries especially tourism industry will rapidly reach high rate of revenue as they expecting to welcome large number of visitors. Also economic growth will be long term. I saw some products in the Internet that represents Olympics in China which means chinese businessmen really sensitive about environment in where they are making business

Reference:www.businessweek.com

20820014 Entry-4

Managing experience- How to give and receive criticism?



Once one of my leader told me that “ To reach the top of the mountain is not difficult, but to keep standing on the peak is difficult. How long will you stand on this peak depends on your personality and character”.
Obviously everyone faces to criticism in their daily life. As a Christian manager, how we ought to respond when someone finds fault with our own work?
According to this article, the goal of true criticism is help someone be the best they can be. It`s not about making someone feel bad, instilling guilt, or reducing a person to tears.
When criticism is done appropriately, the person who has been criticized will understand what he or she has done wrong and will feel inspired to make a change for the better. Not only should we not avoid being criticized, we should embrace criticism because it is the only way we can continue to grow professionally and personally.
In the article author described 2 kinds of person. One has rich, successful life and generous to others. Another one isn`t noble, doesn`t want to apologize others. He explained that it is the two side of man in other words people can be both of these two. Therefore, criticism should include an acknowledgment of what the person has done well, as well as an account of what he or she has not. Criticism shouldn`t be personal. It's easy to criticize the person rather than his or her ideas, but just because we can do something doesn't mean that we should.

My opinion
Corporate social responsibility also covers employers. Moreover the relationship with employers affect firm`s operation directly. Therefore managers must to know well how to communicate with them in this kind of situation unless they lose their valuable employers.
If we don't have high self-esteem, criticism validates our already low opinion of ourselves. If we're strong and self-confident, criticism might surprise us with an unflattering view of ourselves.
I still thinking and hesitating about how to handle the business by biblical way?

Reference:
http://www.businessweek.com/

20501034 - Entry 4

Original Article

Since financial crisis occurred, sale of mid-low price toothpaste has been substantially growing and expensive whitening toothpaste is now lag behind. Consumers have needs of the toothpaste that is effective and cheap.

Scale of toothpaste market has been gradually shrinking. Reasonable consumption culture has been settled and consumers wanted mid-low price product rather than pricy product. Therefore, Aegyoung made mid-low price toothpaste which can be used by whole family.

Brand
The product name, 2080 means that 2080 keep your 20 healthy teeth until you are 80. They made product name with number and it appealed to new generation group.

Product
It was developed for whole family. It contains fluorine which protects carious teeth of child. To appeal younger generation, they enhanced whitening effect, foul breath removal effect. In addition to this, it has some components that prevent the elder for having gum disease.

Price
In comparison with it’s competition model; Medi-dent total (Pacific), it’s 40% cheaper and 20% cheaper than Perio (LG). With its competitive price, it satisfied the consumer’s needs which were changed facing financial crisis.

Place
Using distribution chains that locate all around in Korea, Aegyoung aggressively started to sell 2080.

Promotion
Aegyoung supports “the 2080 healthy teeth campaign” that is co-run by Korean Dental Hygiene Association. Aegyoung also try to enhance their name value through consistent TV commercial and media advertisement and emphasizes that 2080 have been awarded “1998 and 1999 hit product.”


Present Status
8 months after dental clinic 2080 toothpaste was on the sale, it has 7% market share of toothpaste. If we look at the market share according to demographics, you will see that it has preference from broad range of age group. (20’s 14.9%, 30’s 8.3 %, 40’s 12.7%, 50’s 8.2%) It could be regarded as the most successful toothpaste for such short period of time.

20501005 - Entry 4

(Paul Kim)20501005 - Entry 4

A Business Card for Your Avatar
By partnering with online communities and building a geek-chic brand, an online printing startup sells business cards to people without businesses

original article

Well, Today I would like to talk about business cards that prof.Lee has given us as a project.While I was thinking about how to make my business card which should express myself well,I found this article which is about Moo,a London-based online printing company.You may wonder how Moo is different from other printing companies.Let me tell you the reason. Moo is selling business cards(or, more accurately, calling cards) to people who don't have businesses. Instead, they have blogs, online photo sets, and avatars. It was a hugh and new niche!!Since Moo has launched its services in September, 2006, it has shipped more than 30,000 orders to 140 countries. Isn't it amazing?Can you realize the reason why it is successful?Moo offers services that people can customize their business cards, and there are lots of options people can choose.In addtion, Moo made some partnerships with some of the Web's most popular online communities, so it can enlarge its market share and brand value.According to the article, At half the height of a standard business card, Moo's "minicards" offer a distinctive canvas, and for about 25¢ each users can put a different image on every single card they order, with a simple drag, drop, zoom, and crop. Wow,, It is impressive.Now, I am thinking of something innovative and special design for my own business card.I think it might be great that I get some idea from Moo's design.Anyway, these days I am so excited to think of my own business card.I'll try to make the best one! :)