FACEBOOK - 01.02.15

 

Facebook made a change in 2014 compared to 2013.

Its an online social networking service located in Menlo Park, California. The website was launched on February 4, 2004, by Mark Zuckerberg - a normal collage student at that time.

Facebook’s profits are increasing rapidly of $701 million as well as an increase in shares of 34% in the same year. What a year.

Competition Whatsapp

The company used advertisement strategies, which let the revenue, grew by 53%, which was about $3.59 billion.  Most of the sales come from mobile advertisement sales, which many people really annoy because they cant continue with the things they wanted to do, which is a nice market strategy from Facebook.

Competition Snapchat

Currently the social networking giant reported that they have about 1.39 billion active users each month but it changes through that more users add an account. Which therefore gave an increase of 13% than the percentage of last year.

The profits of 2014 were about $2.9 billion, which is nearly the double than the profit that was made in 2013. However even if the company has made the double of profit their revenue decreased from 44% to 29%.  It dropped because of their current competitors as Instagram, WhatsApp and virtual-reality headset make Oculus Rift.  Even with their rising competition, does Facebook do a good job, even if Facebook mobile ads lack subtlety for sure but it somehow work and therefore does Facebook get even more users and increases their income.

As mentioned before did the Company Facebook have decreased revenue of -15% (44% to 29%) compared to 2013. This article refers to our current topic in class, by its market research and R&D (Research and Development) as well as market strategies – to get more people to use their social network, which a lot of people are already doing.

Hong Kong tycoon Li Ka-shing

A big commotion is going on that Hong Kong tycoon Li Ka-shing is going to buy O2 for about 10 billion pounds.

According to the forbes magazines is Hong Kong tycoon Li Ka-shing worth of about 22 billion pounds. His firm Hutschison Whampoa, already owes the three mobile networks and by combining it with O2, would this create the largest mobile group in the UK.

There is a high competition in the mobile group in the Uk currently, which involves O2, EE, Vodafone and Three. Therefore is their a high risk to buy O2, but as Hutchison Whampoa has pointed towards the deals with Ireland, which gives a green light to Hong Kong tycoon Li Ka-shing.

By buying O2, will it also reduce the competition from four to three, which gives an equal fairness to all mobile groups about the competition, accept that Li Ka-shing has more mobile market shares in Ireland and the UK.

As Rory Cellan-Jones has stated are their turbulent in the UK mobile phone industry, which is for nearly all the customers. Just a few years back, there were five operators - Orange, T-Mobile, Vodafone, O2 and the scrappy outsider, Three. Therefore when Three and O2 unite there will be a huge price difference towards the population in the UK. Even if three has been up till now a small company, which operates in the UK, but if it unites with O2 it will be one oft he biggest operator, which keeps rise prices because of international roaming and unlimited data deals.

The question in this article is if it is ethical to charge more money when these both companies unite. Currently does Three have 12% in the UK mobile operators market share, whereas O2 has 29% if both oft he unite they will have a market share of 41% (but source tells 40%). If both mobile industries combine there will be a huge change in UK´s population due to free offers oft he company, which draw in new customers.

It clearly is focused on market shares of companies in the UK and its strategies to draw in or convince more customers to use their mobile phone offer.

Chinese smartphone maker mimics apples design

Logo of the chinese smartphone
Company " Xiaomi "

The Chinese smartphone maker Xiaomi copies apples and Samsung’s design. Its an easy way to think, but in Apples head of design “Jonathan Ive” are there no similarities between his design and Apples. Mr. Ive just called his designs as “theft” and “lazy”.

The Xiaomi phone takes after Samsung in the views of the start up and its name Note, which was mimicked from the Galaxy Note. But the new one has changed the opinion of chinas smartphone users.  

Launch ceremony of Mi Note in
Beijing  on 15/01/15

The Mi Note phone is now the biggest internet- connected device used in China.

Most people outside of China or away from the tech mainstream haven’t heard of Xiaomi yet even if it is an cheap good working product, because the phones were just released and they are working on their market strategies to get the phone around the globe.

All Xiami phone so far

However is Xiaomi just another Smartphone company in the popular biggest phone market against the top Android, Samsung and Apple.

Most of Xiaomi smartphones are target to people from the age of 18 till 34, its less likely as stated in the guardian that users of this phone will be over 35 years old.

In fact that Xiaomi isn’t using the target audience and the same detailed functions as Apple and Samsung, is the statement wrong that it is an copy of Apple and Samsung products, even if the outside from far away might look like it.

The case of a false claim to have copied the structure of other smartphone companies shows the aspects of the marketing mix and the demographic target in this article. In case of the Demographic target is it clearly stated that the smartphones are from age 18 till 34, but it doesn’t give specific information just as the gender or what uses the phone has. As well as the Marketing Mix such as the strategies to get more phones shifted than in 2014. In the case of shifting the phones overseas market research must be done primary or even secondary research. Such as an survey for primary research as well as Internet research for more specific and detailed sources in the case of secondary research.

Both might look similar but they
aren´t

Sainsbury decreases sales revenue

Sainsbury decreases their prices

Sainsbury is the third largest supermarket chain in the United Kingdom, with a supermarket sector of 16.4%. The supermarket chain was founded in 1869, Holborn, London, United Kingdom. In the latest update of the 1^st of October 2014, are these Sainsbury supermarkets located at 1,254 different locations in the UK.

The latest update of their sales revenue has concluded that it is falling rapidly and therefore changes Sainsbury´s plan for opening new stores in 2015.

Sainsbury took a charge of 287 million pounds because there are some sites that cant be changed or developed anymore. Half a year ago did the firm report a loss of tax of 290 million pounds.

After 10 years, is it the first time that Sainsbury is facing a deflation, which was caused by the changing shopping habits of the customers last year. Including the fall of sales have Sainsbury’s shares decreased by 5%. Of having these large profit lost and market share lost, will the development of 40 new supermarket stores across the UK not continue.

09.01.15 rapid fall of their market shares

Sainsbury lost some of their market shares to rivals such as giant Asda and discounters as Lidl and Aldi. As part of Sainsbury Strategy have they decided to reduce spending and probability.  This strategy will reduce the capital expenditure of the amount between 500 million and 550 million pounds each year in the upcoming three years. Lets hope for the best.

Also the emotion full christmas advert didn't
help! Worst Christmas sale since 2004

As seen does the topic Sainsbury scope around the business Management syllabus, in the aspects of market share, strategies and their ad hoc research. In terms of the ad hoc research would it include their research about where to locate the 40 new stores, which development has been paused now because of the decreasing sales. Furthermore are the units of market share and strategies very clear showing, which objectives they use.

Lufthansa

Germanys largest airline asked for a new talk with the union Officals and therefore called the strike.

Lufthansa strikes as usual again. Tueday,2nd December and 4th December 2014 because they want to phase out ist early retirement scheme, which nearly all pilots oppose off. It will be the second time this week, while again 150,000 passengers tickets have been cancelled. From short till medium-haul flights as well as Lufthansas long-haul and carco flights. Lufthaansa strikes have been reoccuring a lot since April 2014, including this one it will be all together nine times in eigth months. By resulting a lost of $160 million of the airlines operating profit.

The reasoning for this strike is so far with the current situation oft he retirement at the age of 55 with receiving 60% of their usually income until the real retire age of 65.

Lufthansa is trying to keep up with this situation by giving their pilots a raise of 5%, which will later also raise their early retirement money. As they have hoped.

The union said "despite all efforts for compromise proposals" by Lufthansa pilots during several rounds of negotiations since October, it had been unable to come to a satisfactory agreement with the company's management.

After all the strikes that have been occuring, Lufthansa has cut down its operating profit guidance for 2015 because oft he concerns of their huge competiiton as well as because of the gobal economic slowdown.

Germany Airline Company Lufthansa - Model Siegesflieger
for the Worldcup 2014 winners of Germany

The guidance for this year has been 2 billion Euros, which wasnt reached this year despite of all the number of strikes that have been occuring this year from the pilots. The operating profit was 1 billion Euros. The Airline group expects the operating profit of 2015 to be a significant like 2014, with an profit of 1 billion Euros at least.

The carrier reportedthe operating profits from the last nine months which was up to849 million Euros, while the net profits increased 235 million Euros from last year (from 247 million to 482 million Euros). 

So far has the airline Lufthansa been hit by 8 only pilot strikes by union Vereinigung Cockpit in a dispute to attempt to change the retirement as well as the pension arrangements.

Lufthansas market shares fell by 6% this morning.

This case study scopes a little bit around the Business Management Syllabus. First of all in this weeks new chapter 4, which is marketing has been represented by the market share of Lufthansa, which has been decreasing. As well as from chapter 1 the increased profit and operating profit of the company.

Labels:

Strategy: From Lufthansa to give a raise to the pilots that they stop to strike, which will stop the decreasing of the profit as well as the decreasing market share

Globalization: Is when the pilots strike so often and affect the planned flight, which are short, medium or long all around the world by the german airline.

http://www.bbc.com/news/business-30267575

http://www.bbc.com/news/business-29829762

ROYAL MAIL ISSUE

"We believe the current regulatory framework does not fully address the problem posed by unfettered direct delivery competition," Royal Mail said.

The shares in Royal Mail closed down to 8.3% after the organization has warned of rivals, including amazon, which is taking in all with the parcel delivery business.

Through the rise of delivery company Whistl could wipe them of 200pounds off sales. A pose of threat is also the competition with its government-mandated Universal Service, with their guarantees to deliver to all UK addresses for a low price. Through these issues the Royal Mail reported that there was a small fall in pre-tax profits. For example – dropped to 218punds for six months until the 28^th September. In the last year it dropped to 233punds at the same time of the year.

Profit on 20.11.2014 till 10

Moya Greene, who is the boss of Royal Mail, reported that there is an increased competition. That is threatening the company’s abilities, to delivery all letter in all part of the UK.  The company has long called for the regulator, Ofcom to consider the option of expanding the Universal Service Mandate, which also ensure that the deliveries across the UK have one fixed price. Which includes forcing the competition to deliver letters to all rural areas, which prices are also affordable, which maybe will not give any profit.

Since the Company has been privatized in October 2013, it has been under increased public security, which affects their abilities of their services.

The royal mail named Whistle named them direct as a threat to their future profits. As well has the Company stated that the increasing parcel competition as amazon, which recently launched a lot of deliveries, could dent the business by much as 2% in a short amount of time. The last 6 months has the Royal Mail´s United Kingdom parcel delivery suffered by a fall of 1% of their revenues.  However did the company internationally increase their revenue up 7%, by having the overall revenue to rise by just 5pounds?

As reported has the executive chief Moya Greene said that if their is no action taken now, Royal Mail's ability to fund the six day letter delivery service across the UK will come under possibly unmanageable strain.

-       The threat is now –

This Article, although that it is just a small analysis of the problem that Royal mail is facing, has it shown the focus of marketing and objectives of their company. As well is it scoping around the income, process and output situation to increase their profit. These topics scope around this year’s business management syllabus.

The Label that I would give this article is:

Strategy: The strategy of the Royal Mail would be to increase their competition by offering a lower price delivery than normally. 

http://www.bbc.com/news/business-30110817