Wednesday, January 25, 2017

Week 2 Discussion (•̀ω•́)✧

–Supply and Demand curves (•̀ω•́)✧
Example: Huawei
The developing history of Huawei is also a process of pursuing brand premium. The newly released Huawei Mate9 has surpassed Apple and Samsung in price. Since 2013, Huawei has been taking the high-end road of development. Thus, it is difficult to find any low-end products of Huawei, with the price of all its products gradually rising up to above 3, 000 RMB. Compared to most of the mobile brands, the price of Huawei is much more expensive. However, inconsistent with the supply and demand curves, the sales volume of Mate9 had exceeded 100 million within 10 seconds after its release. As a technology-oriented company, Huawei terminal utilizes its high technology to produce brand premium. In addition, the price of its products is cheaper in China than in other countries, which cultivates popularity in its domestic market. Therefore, in recent years, even Huawei’s price has been higher and higher, its sales volume is also growing continually.


–The world is flat (•̀ω•́)✧
Example:America Airlines
America Airlines used to having its customer service outsourcing to India professional companies, especially some work like answering the hotline despite the call is from anywhere around the world, it will automatically transfer to India's outsourced.

–Moore’s Law (•̀ω•́)✧
Example:the old Nokia VS. today's smart phone
In thirty years, the storage of cellphones extended for hundred of times.

–Metcalfe’s Law (•̀ω•́)✧
Example:Linkedin
Being the the largest business and employment-oriented social networking website, Linkedin aims to build a professional network by letting users to maintain contacts and build connections with people they know and trust in the business world. Users are allowed to invite people they know to become a part of the "connections". Linkedin is the perfect example of network effect in Metcalfe's law as the system works better when more people become a part of the connections.      

–The long tail (•̀ω•́)✧
Example:JD Daojia
JD.com started as a B2C online retailer, then JD launched a new O2O life service called "JD Daojia" based on the advantage of its logistics management, which was not the mainstream in its system. With the promtion of "Internet Plus" era and O2O system, JD Daojia has rapidly developed in a short period.

–Freemium (•̀ω•́)✧
Example: VPN apps
Users in mainland China must download VPN apps/softwares such as Green VPN, 东风VPN to get access to websites like Youtube, Twitter. Those VPN apps mostly run in a freemium way. Users can first have a ‘free-trial’ for certain MB and after that they will be request to ‘update to premium account’ which has multi-lines and unlimited data flow. If they don’t buy the Premium account, they will have to watch advertisement or download other recommended apps to add their data flow.


Future trend: (•̀ω•́)✧
IOT will be widely used in many areas.
The world will become more flat, a single product's producing technologies shall be divided into serval parts and conducted by different countries.
Artificial Intelligence would replace most of the work of human being.                        

Everyone would have a profile that combine both  professional and social part of their life. Due to the powerful network connections, people can get touch with whoever they want to know. There will be no boundaries between CEOs and regular workers. Those who want a job may just send a link to the manager who need a employee, and the system will examine the matching degree bewteen the jobseeker and the position. That way the demand will highly meets the supply.
O2O will become the main marketing trend.
In the future, more and more companies will get into this market, and the market will become a monopolistic competition where every kind of VPN apps need to diffenenciate themselves to survive. These VPN apps will be different focused function. (e.g. countries, speed, etc.)
For the customer: They will have different choices for different purposes (e.g. videos, games, business) and also they will pay cheaper price for the service.



Group Members:
_(•̀ω•́ ∠)_

Feng, Yuan (1155081930)
Gao, Ye (1155082077)
Luo, Zhaohui (1155084240)
Shi, Tingrui (1155082223)
Wang, Jin (1155088181)
Xu, Shuai (1155081710)



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