Thursday, November 18, 2010

Ballmer Says Microsoft Breakup Not in Cards



Approximately a decade ago, Microsoft was continuously pressured by the government to break up its large corporation into smaller businesses. The government was hesitant about a monopoly forming and believed that smaller businesses would provide better competition for Microsoft.  The company was able to weather through the government's pressure and has til this day, remained as one entity.  Now the company faces the same question from a new face, its stockholders. 

At Microsoft's recent annual stockholders meetings, Chief Executive Steve Ballmer and Chairman Bill Gates attempted to calm the numerous investors who were becoming skeptical about their stock in the company.  Due to generally bland trends within Microsoft's stock, stockholders are wondering if the company would be more competitive if it broke down into individual businesses.  The rationale behind this is that the status quo set up of Microsoft is extremely centralized and Microsoft is unable to maintain such a large company while continually providing innovative and efficient products quickly to the public.  Arguably, decentralizing the company would allow stockholders to invest in areas of Microsoft that they believe are thriving as opposed to the company as a whole.  Therefore, hypothetically, when Xbox does well, stockholders won't feel the effects of poor Windows Vista sales.

The Chief Executive responded to the question of breaking up the company by dismissing it.  He indicated that now isn't the right time for the company to break up because it would reduce Microsoft's value by making it more difficult for the company to compete.  While the article didn't provide a warrant behind that claim, a rationale that was evident later in the article was that Microsoft's products are sold to both consumers and corporations, splitting up the company could potentially undermine their holistic ability to sell products.  Bill Gates, formed CEO and a current board member, shared Mr. Ballmer's view by claiming that the current company's structure allows for "a lot of synergy" between the company's research and branding efforts. 


Unfortunately, Microsoft's comments regarding the company didn't resonate well with the shareholders.  Much of their anger comes from Microsoft's inability to reignite its share price even though their recent operating system, Windows 7, had record sales.  Key analysts have indicated that there is unlocked potential for Microsoft to break up their company.  It could create a spin off based upon their consumer businesses that would be beneficial to the company.  There is a substantial amount of commotion regarding this issue  because Microsoft's shares have fallen 15% since the beginning of the year.  As Microsoft consistently competes with Google and Apple, they're slowly falling behind in sales.  One of Ballmer's solutions to their problems was a process of financial diversification that involved selling up to $75 million in shares this year.


Whether or not this process will work is unsure as of now.  With Google and Apple consistently producing new and innovative products, it will be an uphill battle for Microsoft to retain it's position as a leader in the tech industry.


Cite:


http://online.wsj.com/article/SB10001424052748704312504575618731948970368.html?mod=WSJ_Tech_LEFTTopNews

Wednesday, November 17, 2010

India Lost Billions on Wireless Sales



Recently an Indian government accountant found the telecommunications ministry's guilty for $38.9 billion in lost potential revenue for the government. The accountant noted that the distribution in 2008 used the same fixed rates for bandwidth as were used in 2001. This is crazy because of India’s recent economic growth through the past decade. The allegations over the mishandling of the spectrum allocation forced the resignation of Andimuthu Raja as telecommunications minister last weekend, the latest government official to resign under pressure.

This is such a huge issue because India is one of the largest future telecommunications markets in the world. India is the 2nd market behind the dominant Chinese market for wireless services. There was a miniscule four million mobile services subscriber in 2001 and as 2008 this number has skyrocketed to 300 million.

This issue has caused India more than just monetary losses but also a loss governmental respect. Simple errors like Gaps in policy implementation and not consulting the Telecom Commission were some of the crucial errors which caused such losses. This is going to be a major setback for this rapidly developing market which is going to have to reevaluate a lot in its telecommunications ministry.

Source:
http://online.wsj.com/article/SB10001424052748704312504575618262238669660.html?mod=WSJ_Tech_LEFTTopNews#articleTabs%3Dcomments

Tuesday, November 16, 2010

Apple Approves Google iPhone App

After rejecting a Google application for the iPhone, Apple Incorporation has finally approved of it. According to an Apple spokeswoman the application “was resubmitted, reviewed and approved and joins the more than 300,000 apps in the app. store.” The new Google application is called Google Voice and is currently available to download.

The application Google Voice allows to deviate calls made to the different phone numbers such as “home landlines, office and cell phones” to only one phone. However the Federal Communications Commission had in inquiry about this and asked Apple and AT&T Inc. whether AT&T had something to do with this decision, but it didn’t. The Federal Communications Commission was concerned on how Google’s application was to put its brand on the Apple device.

“Google and Apple are increasingly competing in many areas, from Web browsers to operating software for mobile devices and computers to mobile-device advertising.” However, both companies are somehow cooperating to each other. Mr. Schmidt, an Apple representative said the company recently renewed a deal in order to make Google the default Web search engine on its products.

The fact these two competitive companies are somehow cooperating to each other is somehow unexpected. However, I believe they both are aware that they are two very powerful companies and will probably be the ones leading the market soon, if aren’t already. Why do you think these companies are establishing ‘joints’ between them? Do you think they will merge at some time?

And the Fight Between Google Inc. & Facebook Inc. Continues


While Google Inc. stopped aiding Facebook with finding Google contacts as Facebook friends, Facebook is developing an email address. As the competition between Facebook and Google continues to rise, each company is encroaching onto each other’s “turf”. Mark Zuckerberg, CEO of Facebook claims that their “facebook.com” is more “fun and more valuable for people to use.

What’s going to attract customers to the new email? Well, will not only have the standard email, but it will combine that to instant messaging and cell phone text messages, and saving every message. Not only is it a three in one, Facebook’s messaging system will automatically create contact groups, giving priority messages to people who are you “Facebook Friends”

Some of the statistics of how Facebook is dominating are seen in the above image. Also, Internet users now collectively spend nearly as much time per month on Facebook as on Google's sites! Google now sees Facebook as a threat. Since Google and Facebook are going at each other's throats, are other companies going to create their own email addresses or something completely new to attract customers to them?

Site & Picture Source:
http://online.wsj.com/article/SB10001424052748703326204575616672123580274.html?mod=ITP_marketplace_0

Thursday, November 11, 2010

Google to Give Staff 10% Raise



As the war between Google and Facebook escalates, Google has recently indicated that beginning in January, all 23,000 employees will be receiving a 10% raise.  This move is an attempt to prevent the defection of Google's staff to competitors.  Silicon Valley has been seeing an increase in heated competition for talent as both Google and Facebook are expanding their services and require a higher concentration of talented workers to satisfy the production needs of the company.  According to a recent study, approximately 10% of Facebook's employees are Google veterans and that number was gradually increasing.  Universities and graduate students who used to prospective applicants to solely Google are now looking to other opportunities within the Silicon Valley.  Google originally had a functional monopoly on high skilled talent for their services, but with the introduction and expansion of Facebook, potential employees have a wider array of choices for companies to work with. 

The Chief Executive of Google disclosed in an email that the 10% raise was implemented in order to lift the morale of the company's employees.  Specifically stated that they wanted to make sure that they "feel rewarded for their hard work" and to "continue to attract the best people".  While Google is notorious for the numerous benefits they provide their employees and the luxurious work environment they provide, a survey conducted by the Chief Executive indicated that salary was the most important aspect of Google employees than any other component of pay.  Other components of Google's pay include bonuses into their base salaries.  What's also interesting is that Google is moving a portion of employees' bonuses into their base salaries in order to allow employees to receive some of it within every paycheck.  This 10% increase provides a long-term benefit for employees as opposed to a short-term fluctuation in their salary.  Ideally, the raise will allow Google to sustain their employees for a longer period of time.

As both companies introduce new products, such as Google's rumored social network development, the need for high skilled talent will be essential.  Only time will tell which company emerges on top. 

Wednesday, November 10, 2010

RIM to Price PlayBook Tablet Under $500


Recently, we have heard companies such as Dell, Samsung and Apple in the tablet market, but we haven’t heard RIM, the owner company of blackberries. However, Research in Motion has announced they will launch the “PlayBook” tablet computer at a price under $500. The company attempts to first introduce their product in North America and then globally in 2011, claiming they see a lot of international interest.

Even though introducing a tablet is nothing new, the 7-inch “PlayBook” contains a new operating system built by QNX Software Systems. But what makes the tablet different from the rest is it will have “a one-gigahertz dual-core processor and also features front—and rear-facing cameras and the ability to do video conferencing,” probably what some people are feel the rest of the tablets lack of. It also supports Adobe Systems Incorporation’s Flash technology, making it better to play many videos and applications on the Internet.

According to Mr. Basillie, the company’s co-chief executive; they have no concern about the competition between Blackberries and iPhones or the competition between their tablet and the iPad. They say they still have a strong base that is still growing and believe it will grow faster as they introduce the new tablet. He added, "We just finished our third quarter now...we will be pass them [Apple] and we will stay past them.”

Clearly, RIM could not fall back in the competition and had to design a tablet as well. I believe their modifications might call the public’s attention more than what the other tablets do since more luxuries attract more. Also, I think Rim’s greatest fear in the competition is Apple. We all know how powerful Apple Inc. has become, but they prove to show it when the co-chief executive speaks; he feels pretty confident about the fact they overcome Apple Inc. However, according to Gartner Inc. the global market share of Apple increased about 2% more than RIM. RIM is also planning to introduce new smartphone models next year. I believe the company obviously follows their greatest opponent, Apple, and because of this they are trying to surpass them by modifying what once their opponent created.

Saturday, November 6, 2010

Friendship Breakup Between Google Inc. and Facebook?

Google Inc. states that it will no longer fund contacts to Facebook Inc. Remember how you could import your Gmail contacts and have them as Facebook friends? Well, that’s not happening anymore. Google Inc. will no longer allow Facebook Inc. to grab Google users professional and social contacts.

We all admit that it was nice having Facebook doing the hard work of finding your Gmail contacts for you . However, Google is stern about no longer giving information until Facebook reciprocates. Especially since Google’s policy helped Facebook grow tremendously as it gave an immediate network of friends to the new Facebook user.

I am surprised that Facebook Inc. did not want to extend their contact information to Google Inc. However, now that Google and Facebook are social networking "enemies" it is expected that there will be even more ads displayed on both sites. I am also curious to see how well Facebook is going to do now without Google's help. Any predictions?



Picture Source:
http://blog.searchenginewatch.com/blog/img/facebook%2520google.jpg&imgrefurl=http://blog.searchenginewatch.com/080516-110559&usg=__QcawlhUngjIWumpBsivAsPfrRk=&h=321&w=279&sz=13&hl=en&start=0&sig2=3MXFdJ1wtjSRU82d2VP8FA&zoom=1&tbnid=p5mg_5KXplsyqM:&tbnh=158&tbnw=169&ei=g83VTMjcIsaAlAeaxriACQ&prev=/images%3Fq%3Dgoogle%2Band%2Bfacebook%26um%3D1%26hl%3Den%26client%3Dsafari%26sa%3DX%26rls%3Den%26biw%3D1024%26bih%3D599%26tbs%3Disch:1&um=1&itbs=1&iact=rc&dur=272&oei=g83VTMjcIsaAlAeaxriACQ&esq=1&page=1&ndsp=12&ved=1t:429,r:1,s:0&tx=97&ty=35
Site Source:
http://online.wsj.com/article/SB10001424052748704353504575596913266928110.html?mod=WSJ_Tech_LEFTTopNews#articleTabs%3Darticle

Thursday, November 4, 2010

Samsung Makes Push in Tablet Market



Recently there has been a new behavioral trend in the telecom industry towards tablets. This tablet flurry was originally pushed by Apple’s iPad. Currently the company is aiming for sales of its new seven-inch tablet computer to top one million units by year end and is looking to offer other sizes as it seeks a bigger chunk of the fast-growing market. Tablets of all sizes will begin to appear on this competitive landscape so Samsung is trying to make its stand in the tablet market sooner rather than later.

Companies in this industry often differentiate themselves in the market by exclusively distributing their products to certain service providers in select areas throughout the world. For example Apple in the past has given exclusive rights and access to the iPhone to AT&T. Samsung on the other hand has given exclusive right to sell the Galaxy Tab to Mobile operator SK Telecom Co, which also first had Samsung's Galaxy S smartphone in the domestic market in June.

Source:
http://online.wsj.com/article/SB10001424052748703805704575593550749221716.html?mod=WSJ_newsreel_technology

Wednesday, November 3, 2010


Apparently ‘innovation’ has been an issue for the cell phone business. Companies are already claiming for a better technologic network: 4G or fourth generation. The fourth generation is faster speed that will enable to watch videos and download big files. However, the argument among the different companies is a disagreement on what exactly is 4G.

T-Mobile claims it owns “America’s largest 4G network” while Sprint it is “bringing you the first wireless 4G network”. However, neither company is right since there has been no agreement on the definition of the fourth generation. “"They are putting a mask on 3G and pretending it's 4G," Matt Carter, head of Sprint's 4G business, said of T-Mobile's campaign.”

Partner Clearwire Corp. that runs a technology called WiMax builds sprint and T-Mobile has upgraded its network to a technology called HSPA+, supposedly to be better than WiMax. To all of this, however, AT&T is considered the most powerful company, which now is also attached with HSPA+. However, AT&T plans to move to LTE next year, which is considered one of the two companies qualified as 4G according to the Telecommunications Union. Today, Verizon is attached with LTE, therefore being the only big company that can claim their network as 4G.

The interest of the companies is to upgrade their costumers to more powerful phones that offer better service and more luxuries, such as better Internet service and downloading bigger attachments. This is why the companies are desperate to claim they support the fourth generation network in order to get more costumers. However, not until an appropriate definition for the term is defined, no company should say they support this network. It is not fair for other companies to claim something you don’t have since it will harm them. I believe this can become a serious issue because it is for what all of the companies are now fighting for. First, the definition of the 4G should be defined and clarified to the public, and then the companies should make sure they can offer everything to the public.


Source: http://online.wsj.com/article/SB10001424052748703506904575592700833942346.html?mod=WSJ_Tech_LEFTTopNews


Dell Agrees to Acquire Software Firm Boomi



Dell recently indicated that it intends to purchase the software firm Boomi.  This move symbolizes Dell's desire to expand its presence into various markets, specifically, the corporate technology market.  Boomi is uniquely important to Dell due to their ability to integrate web-based business-software applications to ensure data is effectively transferred between software utilized in remote locations and subsequently on site locations.  The article highlights how technology suppliers, such as Dell, have been trying to increase their portfolios in the data-center market.  It cites a key competitor, Hewlett-Packard, in which they recently lost a bidding battle to regarding the data storage maker 3Par.

The reason why this article is important correlates to an earlier post I had regarding HP's acquisition of McAfee.  A larger trend amongst telecommunications companies has been arising in which the importance of expanding portfolios, specifically in areas such as software expansion, plays a vital role to the business' growth.  Software is having an increased role in various aspects of life, ranging from military application to in-car entertainment.  This increased role of software necessitates improves in software technology in order to ensure the most effective and secure technology.  The Dell-HP rivalry shows how companies are drastically attempting to expand their market portfolios.  The end of the article indicates how CEO Michael Dell recently said in an industry event that the company was planning on announcing a cloud-computing acquisition which has spurred a market-wide speculation on potential targets.  This announcement shows that Dell has future plans for acquisition of companies that will strengthen their hold on the market.  Cloud-computing involves the shared resources, software, and information provided by computers and other devices, such as smartphones, on demand over the internet.  Here we see a unique application of their recent software acquisition.  Dell will potentially want to integrate Boomi's software capabilities with a cloud-computing company in order to provide effective information sharing technology that could bolster their growth.

Cite:

http://online.wsj.com/article/SB10001424052748704462704575590623475642774.html

Dell + Boomi = Partnership

Amidst the trends in the telecommunications industry, Dell has been slacking. As we all have noticed, Apple is rapidly loosing competitors as more and more consumers buy Apple products (iPad, iPhone, etc).

Dell Inc. announced on Tuesday that it was going to purchase Boomi Inc; a business software firm. As noticed, Dell is trying to "boost its presence" in the technological market. Boomi Inc is a software that helps business-software applications to run their data smoothly remote locations. Boomi Inc. have a specific customer market - business men who travel especially to remote areas. However, with Dell's purchase, the target customer has expanded.

However, Boomi Inc. was not Dell's first choice. They wanted to purchase 3Par which was instead bought by their largest rivals Hewlett-Packard Co. Dell Inc has not disclosed any more information concerning the profits that they will be making once Boomi Inc. will be purchased. It is interesting to note that Dell almost to say forced itself to buy Boomi in order to stay in the competitive realm of the market. This shows that as more companies witness the sales of Apple products, they too need to invest and merge with other industry to make their domestic products attract more customers.





Picture Source:
http://laptoping.com/dell_logo.png
Cite Source:
http://online.wsj.com/article/SB10001424052748704462704575590623475642774.html?mod=ITP_marketplace_3

Thursday, October 28, 2010

Nintendo Bets Big on Social DS System

Nintendo has been notorious for providing innovative and fun ways to approach video games.  Their latest product, set to release globally in March of 2011, is the Nintendo 3DS.  The 3DS expands upon its predecessors and has implemented numerous new features.  The first, as evident by the name, is a 3D feature.  What's unique about the 3D within the 3DS is that it requires no glasses.  Similar to the 3D televisions recently released at electronics conventions, the 3DS utilizes a dual projection technology that makes images on the screen appear to be 3D.  Additionally, the 3DS utilizes a new communications tool by providing gamers to talk to one another, write messages, and locate members locally and globally via the internet.  While the idea isn't brand new, Nintendo has shown that simple ideas and innovative concepts can create addicting products.

The Nintendo DS also leaves plenty of room for innovation.  As of now, access to the internet is based upon Wi-Fi hotspots.  Nintendo has not set plans for establishing a 3G connection with the 3DS yet has not closed that window entirely.  While hotspots work generally in populated areas, less populated areas may not be attracted to the device due to the lack of consistent hotspots.  The importance of hotspots to the 3DS' platform is that Nintendo is hoping customers will be persuaded to carry their 3DS wherever they go.  Nintendo indicates that a player could be walking down the street, reading the news on the 3DS, when an notification comes up that a player has "crossed paths" with the player.  The player can then choose to engage or ignore the player, which provides numerous opportunities for gaming and interactions with people around the world.  Of course, Nintendo ensures that this option is entirely optional and can be turned off in order to ensure privacy. 

Many companies have recently made pledges to creating games and products for the Nintendo 3DS due to its innovative capabilities.  Nintendo is hoping to cut into Apple's iPhone and Google's Android gaming market.  Since the 3DS operates with 1 touch screen, this makes it very possible to engage these markets.  One thing that's not confirmed is an "applications" market, or more specifically, some sort of market that allows small, downloadable games.  The importance of this is that many iPhone and Android users purchase games for quick time-killers.  The Nintendo 3DS consists of games that generally, but not always, require a fair amount of time.  Whether customers are looking for something to kill the time or a truly engaging touch experience is unknown.  Nintendo will find out next March.


Cite:

http://online.wsj.com/article/SB10001424052748704361504575552052178193756.html?mod=WSJ_Tech_LEFTTopNews

Wednesday, October 27, 2010

Sprint Posts Loss, but Adds Customers



Today Sprint Nextel Corp. posted a larger 3rd quarter loss but added the most customers in the past 4 years. Sprint is the nations 3rd largest wireless carrier and added approximately 644,000 new customer to its network in its second straight quarter of substatial growth. Sprint shares fell 9.5% to $4.31 in recent trading, but Sprint looks forward to its prospected turnaround reliant on its advanced 4G services.

The timeliness of this comeback however is greatly dependent on Clearwire Corp. Sprint holds a 54 percent stake in Clearwire and is a wholesale customer of the mobile WiMAX operator. Sprint is pushing its 4G-compatible Evo and Epic smartphones as an advantage over its larger rivals. But that advantage is to be short-lived as Verizon Wireless is set to develop its own 4G network in 38 cities by the end of the year, and not to mention add the iPhone to its already prevailing phone selection.

Clearwire is crucial to Sprint’s success because it is the backbone of the companies 4G network. Presently Clearwire is in some financial trouble injuring Sprint’s 4G master plan. Sprint is considering financing the company even further but it is still unsure. Sprint is optimistic as they continue to expect more customer growth in the 4th quarter.

Source; http://online.wsj.com/article/SB10001424052702304173704575577893941805792.html?mod=WSJ_Tech_LEFTTopNews

Apple Launches Online Store in China

Apple Incorporation has opened an online store in China, along with a simplified-Chinese version of its App Store. This enables the Chinese costumers to an easy access of Apple products (iPad, iPhone, computers). Before, an online purchase had to be picked up in one of the Apple stores, where as now the products can be shipped in a matter of days. However, Apple will not be the only company to expand in China, but the Taiwanese smartphone maker HTV Corporation will as well.

Considering China is the world’s largest mobile market and second largest computer market, Apple is planning to expand their market in China by opening 25 Apple Stores by 2011. Apple is also trying to launch new products as soon as possible for this reason.

Apple was ranked fifth in the smartphone market in China with 7.1%. Therefore this move will probably increase their selling in the area and beat other companies. However, this step has a disadvantage since e-commerce in China since the costumers are required to have dual-currency credit in order to make purchases. This harms the App Store because many seek for other alternatives such as hacking their phones or using fake identities, which harms the market.

Considering the issues of the action are minor and can be taken care of, Apple is on top of all other companies. One more time Apple is seeking to satisfy the public with their products and services, and this time in the most popular smartphone market. If Chinese costumers start buying through this service, it is very likely Apple will overtake popularity in China and will increase their wholesale.

Source: http://finance.yahoo.com/news/Apple-Launches-Online-Store-bw-3623989688.html?x=0&.v=1


Tuesday, October 26, 2010

Google's Expansion Creating Enemies in Online Traveling

Besides being known as a powerful search engine, Google Inc. branched from Internet and broadband to the mobile industry and now wants to grasp traveling. Announcing this, Google Inc. created enemies, as numerous online travel companies created a coalition called Fair Search.org in hopes of persuading the Justice Department to forbid Google’s deal. FairSearch.org was formed by the partnership of Expedia Inc., Kayak.com, Sabre Holdings and Farelogix Inc; the leading companies in the online traveling.

Google Inc. wants to purchase the ITA Software Inc, the $700 million. ITA Software is fundamental because it is the leading informer about flights data. By allowing this deal to be conducted, Google will have total control over the travel sector. Not surprisingly, Microsoft Corp. also opposes the transaction saying that their search engine Bing relies on ITA for its travel searches. By allowing Google to purchase it, Bing will be hurt drastically because Google Inc. can set limitations on travel data since it would own ITA.

Statistically, ITA owns 65% of direct online information. ITA software helps online booking as well as comparing different online travel agencies for best prices. Google, on the other hand, without buying the ITA’s software already owns more than 30% of all search engines for those sites. Is FairSearch.org than right to rally against the deal? By concurring the deal, Google would then own 95% completely owning the industry once again. If the deal does occur or not, what will Google try to branch out to next?



Cite Source:

Friday, October 15, 2010

Glasses free 3D TV unlikely soon

At a recent electronics conference, Samsung revealed a glasses free 3D TV that astounded many consumers.  3D has been making its way into consumer products as shown by the Nintendo 3DS which is showing signs of an up and coming market for various telecommunications products.  Unfortunately, Samsung indicated that this type of product won't be available to consumers for another 5-10 years.  This is due to high manufacturing prices that would prevent it from being mass-produced.  What I find interesting about this article is the hints towards the importance of the next 5-10 years.

As 3D begins to make its way to smaller products such as cell phones and hand held devices, a "testing phase" of 3D is beginning.  The next couple of years will determine the success and implications of 3D on telecommunication products.  How customers react to these products could shape the role 3D plays in larger companies.  While visually appealing, there are still numerous problems that exist with 3D, specifically, the "zone of vision" one must be within in order to see the full effect of the 3D capabilities.  The transition towards 3D could also affect industries that focus on HD, LCD, LED, etc. forms of projecting images.  While many of these issues are extremely predictive, they may become real issues as the years progress.

Wednesday, October 13, 2010

N8 Nokia beat the Apple iPhone?

Nokia Corp is one of the world large mobile industries. This following May it will introduce the new N8 smart phone. The N8 costs $549 and is said to tighten the competition between them and the iPhone. Over the past three years Nokia has been doing horrible in the United States. They lost over 70% of their market value due to their misinterpretation in market trends.

One thing that made Nokia loose its popularity is that they said consumers can pre-order from they home website yet they couldn’t distribute all of them, creating a bad image. Due to this Nokia profit fell from $289.8 million by June 30. However, their quarterly sales rose to €10 billion from €9.91 billion

What is interesting to note is that Nokia Corp is envisioning that the N8 will bring up their sales and catch up with iPhone. Does anybody really believe that?


Source: http://online.wsj.com/article/SB10001424052748703960004575481912022035740.html

Sony to Start Sales of Google TVs


Sony Corporation will now sell televisions with Google Incorporation’s Web-surfing, a combination of access to the Internet with regular TV programming. LCD screens from 24 to 26 inches will be available at a very considerate price, from $600 to $1400. The purchasing of the new product will be available through the online Sony website and in Best Buy stores as well.

Sony’s prices exceed other prices by $200 to $400 because they include the new software. This worries the company the consumers will not purchase their TV. However I believe the public will consider their offering as well since those extra bills are there for a reason, the advantage of having access to Internet and a TV at the same time. Sony is taking advantage to launch Google TV sets in the holiday shopping season in order to sell more. This demonstrates certain fear from part of the company and shares a negative suspicion on the public. Personally, I feel some fear from the company and this lowers my intentions of purchasing the product rather than wanting to buy it.

The article says, “ Sony’s new TVs will be built on Google’s Android operating system, will navigate websites with Google’s Chrome browser and rely on Intel Corp.’s Atom chips for processing power.” I would say this is the competition of Apple TV, whereas working with a company (Google) that is growing with a lot of power and rapidly, is a good move from Sony Corporation.

This new innovation will certainly attract the public’s attention since technology like this is what consumes the most. Being able to watch TV and search anything in the Internet without having to use the TV and the computer will be a “must” in some time considering people are looking for what facilitates them the most. The new Google TV includes a keyboard in order to perform ‘computer work’ in a television.

Source:

http://online.wsj.com/article/SB10001424052748703440004575548700586708336.html?mod=WSJ_Tech_LEFTTopNews


Microsoft Redials Phone Pursuit



Recently Microsoft has just launched its company into the chockfull smartphone market. The last time Microsoft had attempted such a move it failed miserably with the “Kin”. This smartphone market is already over powered by phones such as the powerhouse iPhone and the increasingly popular Droid, so if Microsoft plans to be affective this Windows 7 phone better have some amazing features and abilities.

Microsoft has been an international technology corporation specializing in software. Learning from past mistakes with producing the Kin themselves and it failing miserably, the corporation altered the supply chain a little. Now they are sticking to their strengths producing the actual software and allowing other specialized phone producers such as Nokia, HTC, and Samsung to design the hardware of the product. The brainstorming of the software is done multinational as well as domestically. But the actual construction of the product is done in foreign countries to the likes of China and Japan which has drastically lowered production costs.

Although Microsoft is spending over 100 million in an extensive advertising campaign it is going to be tough to enter this kind of market and actually make a lasting impression. A lot of details on the phones are still being figured out but the main focus of the Windows 7 Phone line is to make everything simpler for multitasking and life in general. A certain feature being a camera button on every phone that can snap a photo on demand without the hassle of unlocking the phone and loading it. These phones are to be available early next year on networks such as Sprint and AT&T.

Sources:
http://online.wsj.com/article/SB10001424052748703794104575545923610076124.html?mod=WSJ_Tech_LEFTTopNews
http://gigaom.com/2010/10/12/5-ways-windows-phone-7-could-bite-into-android/?utm_source=webworkerdaily&utm_medium=specialtopics
http://www.onlykent.com/20101013/htc-7-pro-windows-phone-7-specs-and-release-date/

Saturday, October 9, 2010

Verizon vs. AT&T - The iPhone Battle

As the iPhone finally expands to its second carrier, Verizon, various differences between the networks have emerged.  On the first level, network quality is an important issue for many consumers.  Over the years there have been numerous complaints that iPhones using AT&T's service have experienced dropped calls.  This is primarily due to AT&T's lack of comprehensive network penetration throughout the United States.  Areas such as San Francisco have experienced high levels of dropped calls which has propelled the desire for the iPhone to expand to another network such as Verizon.

While Verizon will probably provide better service than AT&T, there are various structural "issues" that have emerged with Verizon's iPhone.  AT&T iPhones run on a standard called Universal Mobile Telecommunications System (UMTS) while Verizon's iPhones will run on Code Division Multiple Access (CDMA).  The primary difference between these two standards is the ability to multitask.  Verizon customers cannot currently browse the internet or send emails while talking on the phone.  AT&T has capitalized on this ability with their iPhones, especially with the release of the 3G iPhone and operating system, and claim that the ability to multitask is a prerequisite to many consumers purchasing iPhones.

Verizon has downplayed the importance of UMTS and multitasking claiming that multitasking isn't an important factor in purchasing an iPhone.  Another important difference between UMTS and CDMA is the access to CDMA.  CDMA is primarily a service used within the United States.  This means that consumers that want to use their phone in Europe or Asia may find problems attaining service.  This may force Verizon to create partnerships with foreign telecommunications companies which could be a costly endeavor.  Additionally, studies have shown that CDMA consumers energy faster than UMTS which substantially decreases the battery life.

In the end, both companies have different interpretations on what the market is looking for in the iPhone.  AT&T argues that while service is important, the functions of the phone outweigh the mediocre service.  Verizon on the other hand argue that the service is the primary reasons customers are attracted to the iPhone as opposed to the ability to multitask.  If Verizon ends up being right, this could potentially destabilize a major source of income for AT&T.  The iPhone is one of the major headlining products for AT&T.  An emerging competitor from Verizon could potentially prove to be a threat to AT&T's consumer base.

http://online.wsj.com/article/SB10001424052748704657304575540072333071694.html?mod=WSJ_Tech_LEFTTopNews

Wednesday, October 6, 2010

Cisco vs Logitech - Who's Phone TV Would You Choose?

MK-BG611_CISCO_G_20101006193212.jpg


Cisco and Logitech are two companies selling an identical product: a TV that could now be used as a phone. Cisco claims it would allow video chats through HD TV. The package deal is: a remote control, a camera and a set-top box. The image displayed above is an example of a Cisco package (minus the TV). This package deal will cost $599 including a $24.99 monthly subscription fee. It will be available to purchase November 14. Is it that really a good bargain?

Logitech on the other hand, calls its “TV/phone” a Revue set-top box for Google. This software will allow consumers to navigate the Internet through their TV. The Revue top-box will cost $299.99 device. A $149.99 camera must be purchased for making video calls. Yet their bonus offering is that they will not charge a monthly service. This product will be on the market earlier than Cisco, by the end of October. On that note, is a consumer going to wait and pay $600 plus a $25 monthly fee (Cisco’s deal) or $450 (Logitech’s deal) in total?

Not only are the devices expensive, but the consumers also have to have a high broad Internet connection in order to really have a HD of the people they are video chatting with. Mr. De Beer argues however, that around 31 million US households already have the right internet broad connection and that in a couple of years, the number of households will double. Do both companies really believe people will buy these products? My roommate and I bought a cable that connects our laptop to the TV so we can watch movies full screen (and are already HD if viewed from Hulu, for example). I can just use the cable see my parents full on our TV when I Skype them. Not only do I not pay a monthly fee, but I already have an integrated camera as well. What does Cisco or Logitech have to offer me now?


Source of Picture and Article:

http://online.wsj.com/article/SB10001424052748703735804575536072370578924.html?KEYWORDS=telecommunications#articleTabs%3Darticle

Apple Making Verizon-Ready iPhone by Year End



Apple Inc. has recently started producing a CDMA capable iPhone, which is a different kind of wireless technology used by Verizon Wireless. Verizon is the largest U.S. mobile-phone company and will start selling Apple Inc.’s iPhone next year. This put an end to AT&T Inc.’s monopoly on the dominant smartphone in the U.S. This new CDMA compatible iPhone device is rumored to be offered to customers in January.

This iPhone will be very similar to the iPhone 4g in that the look is the same. Actually the only main difference in the phone will be a chip inside that allows the phone to run on a separate network. Furthermore there are continued rumors about Apple Inc. producing an even newer iPhone model but details on this are still unclear.

If this is to show anything it is that Apple Inc. perhaps for once is on the defensive side of things and is now reaching out for new consumers. Maybe other smartphones such as the Droid by Google, which is also offered by Verizon, is becoming more popular because of AT&T’s unconvincing service. This could also cause a huge shift in consumer’s alliance with AT&T because they have always had the exclusive iPhone and now that another competitor is offering it AT&T could possibly see a huge change in its customers starting in the next quarter.

Sources:
http://online.wsj.com/article/SB10001424052748703735804575536191649347572.html?mod=WSJ_Tech_LEADTop#articleTabs%3Darticle
http://www.bloomberg.com/news/2010-06-29/verizon-wireless-said-to-start-offering-iphone-ending-at-t-s-exclusivity.html

Tuesday, October 5, 2010

Windows Phone 7 Won't Move Microsoft Stock

Microsoft Corporation has recently announced the launching of a brand new product, the Windows Phone 7. This is a renovated version of its mobile phone operating system. Microsoft will receive market support from AT&T, which will be the “official” US Company to sell the product.

Microsoft Corporation has been falling in the smartphone area this past year; “falling to 5% in the second quarter of 2010 from 9.3% a year ago”. Since Microsoft’s main competitor, Apple Incorporation, launched the iPhone; they have faced certain fall in their profits concerning the smartphone area. They also had issues with the Blackberry and the Android, falling behind in the mobile innovation. Microsoft tried to be at the level of the rest by launching a line of Kin phones but had to remove them from the market because it was not a successful investment.

This certainly proves how a company may have ups and downs. Microsoft has always been a very well recognized corporation; it has even had the greatest sells in the electronic area at times. Windows phone 7 can get Microsoft involved in the smartphone market again. However, the iPhone, Blackberry and Android are difficult devices to compete with, this is why Microsoft is planning to offer new entertainment such as 2D and 3D games for the program along with new offerings via the Xbox Live Marketplace.

Even though the selling of this new product will not affect the company’s stock, according to Business Insider. Supposedly Microsoft sold around 3 million licenses on what has gone of 2010. If Microsoft doubles its market share in 2011 because of the Windows Phone 7, it may double its production and even get to sell 24 million licenses in 2011. However this will have no monetary impact on Microsoft’s stock. Then the question is, is it an intelligent investment where as to monetary means? I believe the company itself may not fall behind in such competitor market, even though it will have a great financial impact on the company, it is worth producing some more money rather than falling behind in the innovations the industry provides.

Source:

http://www.thestreet.com/_yahoo/story/10880245/1/windows-phone-7-wont-move-microsoft-stock.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA


Thursday, September 30, 2010

Comcast Could Suffer from Universal Access

Over the last couple of years, Comcast as gradually taken control of NBC Universal.  The process has come with relatively little economic problems for Comcast.  Unfortunately, conditions regarding Comcast's functional acquisition of NBC  Universal have still not been determined which makes future costs unsure.  This is especially vital in the area of online videos.

Various public-interest groups and satellite-TV firms have requested the Federal Communications Commission to guarantee that the merged Comcast-NBC Universal not be allowed to withhold its content from rivals online.  Withholding media content from rivals would allow Comcast to virtually control a large share of the online television market while forcing competitors to air less popular and less viewed shows on their website.  A regulation against Comcast could be problematic for Comcast.  Investor confidence could potentially tank as rivals such as Netflix and Sezmi could capitalize on online video services.  Sezmi is uniquely important because it is a venture-capital-backed broadband video service that has the ability to directly compete with cable.  Allowing these companies access to Comcast's online media would undermine Comcast's ability to effectively protect its core-cable-TV business. 

The outcome of this decision from the FCC could have some drastic effects on these industries.  If Comcast is required to allow other companies to use their media, this could undermine their investor confidence and could stifle their growth as a company.  Additionally, other companies would become larger competitors and in a worst-case scenario, undermine Comcast's hold on online-media.

Cite:

http://online.wsj.com/article/SB10001424052748704116004575522141414844222.html?mod=WSJ_Tech_LEFTTopNews

Wednesday, September 29, 2010

Apple TV Splits Networks



Apple TV is finally arriving to the homes of the first consumers across the nation. Apple just this month announced the service when it revealed a make-over of its new Apple TV device, which delivers programming over the Web. Walt Disney Co.'s ABC network and News Corp.'s Fox broadcasting have agreed to make their shows available for Apple TV. But other national broadcast networks owned by NBC and CBS as well as major cable networks have refrained from offering their services to Apple.

Tech news sites and bloggers across the nation have been all over the Apple TV recently and one of the main topics of discussion was on the pricing of 99 cents for a TV rental show. Apple's price of 99 cents is the same price it charged as it became the dominant music retailer through its iTunes store. But this price is one of the main reasons major broadcast networks are still abstaining from joining this Apple TV movement.

This is not to say that they soon won’t become a part, knowing Apple and their dominance in the music industry there’s no saying that they can’t do the same for TV. Chief Executive Philippe Dauman even said "We value our content a lot, we don't think Apple has it quite right yet." Media companies across the nation are more than eager to increase revenue so taking on Apple TV might be a must knowing how much consumers love Apple products.

Sources:

http://online.wsj.com/article/SB10001424052748703384204575510153153348466.html?mod=WSJ_Tech_LEFTTopNews#articleTabs%3Darticle

http://www.i4u.com/40104/apple-tv-review-round

http://store.apple.com/us/browse/home/shop_ipod/family/apple_tv

Dell to Launch 7-Inch Tablet in Weeks Ahead

Recently, Apple Incorporation launched a very successful innovation—the IPad. Considering it is to be said tablet computers will overtake the technological market Dell Incorporation has come with an innovation. They are planning on launching a seven-inch tablet in a very near future as well as offering it in ten-inch size among the next months. Additionally Dell mentioned they will be bringing new products (“a whole slew of new products”) into the market in the next months.

The seven-inch tablet will operate Google Incorporation’s, Android smartphone’s system as well as Microsoft Corporation’s Windows system. Dell also plans to expand its service towards other countries such as China, considering other big companies have already started expanding as well, in this case selling their five-inch tablet in Australia. Dell’s expectations all point in a good direction, expecting its annual revenue to exceed US $60 billion this year. They also mention their service in China will overtake the Us as the company’s biggest market by 2012, expecting to grow from 18%-20% in its market share.

Dell is certainly “winning the market combat” since innovative products will definitely be a must have or a desire in the public. Concentrating in a country as China is a very smart decision since its revenue is now growing. Launching innovations in such a small time, six months, will definitely make the incorporation grow. Then, should other corporations fear the strength Dell Incoporation is now having the telecommunications market? They have to definitely put an eye on this corporation and start making competition just as Dell started by coming up with a tablet, now commonly offered by various companies.

MK-BG268_DELlTA_D_20100922175732.jpg

Source:

http://online.wsj.com/article/SB10001424052748703882404575520940696477422.html?mod=WSJ_Tech_LEFTTopNews#articleTabs%3Darticle

Tuesday, September 28, 2010

Could Twitter Be More Than Just A Blog? (WSJ 9/27)

FollowMeOnTwitter.jpg



After watching your favorite series aren't you bombarded with "follow us on twitter" logos? Marketers believe that Twitter can transform from a blogging service to a profiting enterprise. We have all noticed the popularity of Twitter and marketers now believe that advertisement could be included on Twitter (sounds a bit like Facebook no?) to create a form of revenue. In April, Twitter signed with 30 brands, including Coca-Cola Co., Virgin America and Starbucks Corp. as an experiment. Unfortunately, Twitter Inc did not produced any new ad buys. In order to boost its advertising, Twitter Inc. hired executive from Goole Inc and Facebook Inc. I don't twitter, but I wonder if those who do will really appreciate the ads on the sidebar? There are more than 160 million registered users around the world. Would this increase with the numerous ads on hte site or will this start a decreasing trend?


Cite Source:

http://online.wsj.com/article/SB10001424052748703793804575512711786346900.html?KEYWORDS=Twitter%27s+a+fledgling

Picture Source:

http://www.google.com/imgres?imgurl=https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhOvtaH71Z0Kiqi6Ch28epK8xWrI1IkqTspQRti_Z3wA7SyPojxDvxoWQiu04ntMhtKgGHUkYInghC6tw9D_42ihFlBOIMiztYEK0ZaK4ddAwgWTPFFc5kxcd6g9e3XweGWw5L3HOfky1p1/s400/FollowMeOnTwitter.jpg&imgrefurl=http://www.iagreewithjoe.com/2008_11_01_archive.html&usg=__dUoC2r0z4vxrDTHFgQd8D5tM-8A=&h=271&w=400&sz=22&hl=en&start=36&sig2=muyvUYt47OCNIaBDcGXP_Q&zoom=1&tbnid=zXMJFhOiXJ2KWM:&tbnh=136&tbnw=200&ei=1JqiTOLPMISClAfEmdmxBA&prev=/images%3Fq%3Dfollow%2Bme%2Bon%2Btwitter%26um%3D1%26hl%3Den%26client%3Dsafari%26rls%3Den%26biw%3D1281%26bih%3D604%26tbs%3Disch:10%2C1006&um=1&itbs=1&iact=rc&dur=279&oei=yJqiTKPsKMPflgecrfGSAw&esq=5&page=3&ndsp=18&ved=1t:429,r:8,s:36&tx=98&ty=52&biw=1281&bih=604

Saturday, September 25, 2010

Verizon to Change Mobile Data Plans - Toby Jacob

Verizon recently made indications that the company plans on charging wireless customers based upon their internet data usage and introduce new plans with limits.  This move follows their rival AT&T's recent decision to stop selling unlimited data plan to customers.  AT&T has moved toward selling two different service plans that include monthly caps.

This move was primarily due to the massive increase in Verizon's customer base.  The wireless industry requires billions of dollars in investment in order to sustain a network that smoothly and effectively deals with traffic.  While the details of this plan aren't clear, it may mimic the AT&T plan of $15 a month with a limit of 200 MB of data and $25 a month with a cap of 2 GB.  The plans will allow Verizon to garner increased revenue for the wireless services they provide.  Monthly fees coupled with the potential of people going over the cap will ease the strain companies have on maintaining smooth network traffic.

Increased revenue with Verizon's new data plans will allow more money to be siphoned into areas that will potentially increase innovative wireless technology while subsequently dealing with network trafficking.  Critics have claimed that there may be a risk of consumers switching networks because they may like unlimited plans over the risk of overusing their data plan.

Regardless, the move symbolizes the company's greater goal of create a fiscally secure and strong company.

http://online.wsj.com/article/SB10001424052748703384204575509640930858752.html?mod=WSJ_newsreel_technology

Wednesday, September 22, 2010

The Newest Telecom Killer

Recently communication via the Internet has come to be the most popular one. Even though cell phones are more efficient for instant messages programs such as Skype are probably more “competent”. They are more competent just because they allow the users to have free calls. The only issue about this is having to be in a computer in order to use it.

Google Incorporation has created a similar innovation that will enable the users to make free calls. Such as Skype, this application will permit the users to make calls, however it has an advantage, US and Canada calls will be completely free while other international calls will have a low cost. These innovations were created in the last years and certainly have been a total success.

AT&T, Verizon and other companies should not feel threatened with this kind of “competition”. Given that Skype and now the new application Google offers provide the users to call without any cost at all certain competition rises to these companies. Definitely cell phones are more used than these programs, however these companies should keep an eye in their progression in order to avoid ‘harmful’ competition.

The article states: “Google has found yet one more industry it can disrupt. Maybe it will consider making electric cars or staffing dry-cleaners next”. This means this company is becoming more powerful as technology advances, then, should the main companies in the telecommunication panic or will it be just a temporary threat?


Source:

http://247wallst.com/2010/08/25/the-newest-telecom-killer-gmail-voice-calls-goog-t-vz-ebay-vg-call/

Google Adds Calls to Gmail - Severn Henry

Google Inc., in its desire to characterize itself as the "go to" source for research, mail, media, and mapping, now has added a feature in its Gmail to call other people on your friend list. This service even comes complete with a dialing pad. Although Google did not revolutionize the idea of calling over the internet (I will get to that a little bit later), it certainly made a very convenient step for its users. I expect a significant increase in the company's stock, as this new tool will be used very commonly. Allow me to explain why I think Google's stock will increase.


As many of us know, Google will have competition with another company that has ruled the "call through the internet" industry - Skype. I have never used Skype, and cannot tell you the format of it, but this website has boomed in popularity over the past year (as an experiment, count the number of people on your floor who you see Skyping one of their friends and write that number a comment - I am just interested to know). Google will, at first, have a tough time trying to pull subscribers away from Skype into the Gmail calling system. I do not know Skype's calling format, but I cannot imagine a much easier format than Google's. As you can see in the photo that I have provided, you can immediately bring up the keypad to call, or even type a contact's name in the search bar. This way, if a customer wishes to ask for details or clarification about an e-mail that they are reading (ex: student to teacher, employee to boss, CEO to CFO and vice-versa), he or she can now find instant clarification. The user will not have to go to another website or pull out his or her phone to communicate and he or she can take notes about the conversation concerning an e-mail with the extra hand that before was used for the phone.



Borders and e-Books Building A Loving Relationship

We have all heard or purchased an e-book. For those who haven't, its a small electronic book where you can download/purchase a book and read it on a screen! Sony initially created the e-Book, launching a new product in our savvy tech society. Amazon, Barnes & Noble, and other national bookstore hopped on the occasion.

Yet, Borders decided to twist things up and expand their market by partnering up with Kobo a Canadian e-bookstore; that contains 1.5 million book titles. Furthermore it established a partnership with Sony for their Reader Pocket Edition and Sony Reader Touch Edition. Through this partnership, by 2011 Borders claims to hold seventeen percent of the e-book market.

Despite this huge lunge forward, Borders is quite behind comparatively speaking with Amazon (Kindle), Apples (iPad), and Barnes & Nobles (Nook). Borders added a new quirk that none of the former acquire which is that "readers can move books around devices freely".

Since this is still a new product on the market, no one is a dominator in the product. With Borders entering the market, customers might shift their demand to Borders since they have the "new" e-book. Not only is this very competitive between the big industries mentioned above, but also this is causing colossal damage to small business that only sell hard or paper copy books. This generation is very focalized on having everything technical. Less and less people are buying cover bound books, making those businesses turn to bankruptcy.


Reference:
http://www.technewsworld.com/story/70367.html

Tuesday, September 21, 2010


Clear Wireless (CLWR) is a recently emerged wireless internet service provider founded by Craig McGraw in 2003. It serves an international market place of over 61 markets as of December 2009. Its markets include Ireland, Spain, Belgium, Mexico, and the United States. Clearwire constructs and manages mobile broadband networks that provide high-speed residential and mobile Internet access as well as residential voice services in communities. They have just fewer than 4,000 employees so it is a relatively small corporation.

But in the past 5 years is when things really got going for the company. They merged with Sprint-Nextel in 2008 and Sprint now owns 51% of the company, but other significant shareholders include Comcast and Google. Within the past year Sprint introduced the first commercially available 4G cellphone in the U.S. the HTC EVO 4G. The device uses Clearwire’s 4G network along Sprint’s 3G network and Google’s Android OS. This 4G network is being used by Sprint to compete with the likes of competitors such as the iPhone.

With such competition like this the wireless telecom landscape has changed vastly. Because the iPhone only operates on a slower 3G and AT&T as a whole is largely behind the curve towards a solid 4G network, AT&T is now caught up with Verizon to supply its customers with a 4G network. Now U.S mobile suppliers are basically forced to have to upgrade their entire networks. Sprint, the 3rd largest wireless company, now undoubtedly has the edge in the new 4G network competition thanks to its principal investments with Clearwire Corporation.

Sources:
http://online.wsj.com/quotes/key_facts.html?mod=2_0470&symbol=CLWR&news-symbol=CLWR
http://online.wsj.com/quotes/main.html?symbol=CLWR&type=usstock usfund&mod=DNH_S
http://moconews.net/article/419-atts-randall-stephenson-explains-4gs-growing-pains/

Thursday, September 16, 2010

Gatorade Uses Social Media to Revive Itself - Severn Henry

PepsiCo has now reached out to the social media in order to revive one of their products that has been on the slide over the past three years – Gatorade. In making an attempt to sell more drinks, PepsiCo initiated a “Mission Control,” a collection of 4 full time workers who monitor buzz words like “Gatorade,” “G2,” or “G-Series” in Twitter updates or Facebook statuses.


This Wall Street Journal Article attributes the inception of “Mission Control” from the fact that the consumers view Gatorade in a different light – what was once marketed as the only drink that could replenish the fittest bodies of athletes now has just become an ordinary drink. However, when the less athletic begun to consume Gatorade, the exclusive list of people who drunk Gatorade became more muddled – Gatorade’s sole marketing campaign since then has diminished. Neither Michael Jordan, Mia Hamm, nor the Florida Gators appear in commercials like before.


This diligence in online supervision that concerns monitoring hype over a company is certainly a breakthrough step in the telecommunications industry, in that Gatorade is now able to monitor the consumer’s issues with the product. Most companies are beginning to further invest in telecommunications to follow the “net hype” about their own industries, but such funding includes software that tracks these hypes or hiring advertising agencies to track for a company. PepsiCo, however, has an advantage in that it is able to respond to these “net hypes” because it can respond (not a machine) and can speak to represent its own company (agencies cannot do that as far as I know).


In the long run, I do not think that “Mission Control” will not be beneficial for PepsiCo for one simple reason – something like this has never happened for any other company (as far as I know). We have to remember that the Internet is a great business tool to transform the smallest company into a large enterprise – it was not meant to rebuild a business. In our fast, technology driven society, we have learned to leave straggling businesses behind if they cannot update their products. And although Gatorade’s sales rose 2.4% in the past 6 months, most of it is attributed to the fact that the summer of 2010 was abnormally hot. In fact, I would not be surprised if Powerade (Coca-Cola Co.’s version of the sports drink), the cheaper and healthier alternative that still has the athletic image that Gatorade is losing. Powerade should invest further in social media tracking to grow and overpower Gatorade.


Article:

http://online.wsj.com/article/SB10001424052748703466704575489673244784924.html?mod=WSJ_Tech_LEFTTopNews#printMode