Business Strategy Research Paper Example | Topics and Well Written Essays - 500 words

Business Strategy - Research Paper Example There were several initiatives developed as part of this strategy as will be described and evaluated below. One of the initiatives was ensuring that the company registered improved restaurant operations. In an effort to achieve this, McDonald’s ensured that employees received relevant training to their job responsibilities as well as leadership skills. Since the company has the Hamburger University, it proved easy for it to offer training programs. In addition, McDonald’s sought to ensure that its products were sold at an affordable price. Notably, the company indulges in research on the emerging economic trends and ensures that it adjusts prices to match the economic situation. The company focused on cutting down costs so that it would succeed in reducing the food prices. However, it maintained its quality of services and food. McDonald’s also increased the variety of its menu presenting consumers a diverse range of beverages and fast foods. The company was keen to realize that healthy eating has become a priority for many consumers and introduced quick service foods , which are healthy. Worth noting is the fact that the company also increased the number of McCafes as well as operating hours (Weinstein, 2012). In order to determine whether McDonald’s strategy is well matched to the industry conditions, it is critical to consider how its internal and external conditions complement each other and how they are aligned with the industry conditions. Evidently, McDonald’s has identified and utilized the best opportunities available in the market. It strives to offer its consumers unique products. In addition, the company has ensured that its business strategy conforms to the emerging social and economic conditions as well as buyer preferences. This is made evident by the fact that the company reduces prices when there are economic hardships. Moreover, it

Being a Leader Essay Example | Topics and Well Written Essays - 2500 words

Being a Leader - Essay Example Likewise, the paper also highlights various leadership styles, which a leader might require to adapt in its process of leadership. Moreover, it also highlights the cultural and motivational aspects for a leader in an organisation. The role of a leader is to assimilate the skills of the people in an organisation to achieve the desired results and organisational objectives. It is also considered that a leader has the role of providing direction to the employees in an organisation, act as a medium of communication between the low-level management and the top-level management of an organisation. Moreover, a leader also has to play the role of a mentor for a group of employees along with providing knowledge to them. Motivation along with providing encouragement to the group of employees also falls under the role of a leader (Kashfi, 2007). Similarly, the responsibilities associated with leadership include communicating the message from the top-level management to the lower-level management of an organisation and help in the smooth execution of organisational operations. A leader is also responsible for empowering talented employees along with convincing them with a vision of meeting the organisational objectives a long with their personal requirements (Burton-Jones, n.d.). Communication skills are perceived as quintessential for a leader, which must be inherent within the people in this position. Moreover, a leader must also have the knowledge of planning regarding the resources in an organisation applying their foresightedness skills. Knowledge of controlling a group and its overall performance is also a vital aspect for leaders to become successful, where the foresightedness characteristics prove to be a virtue for them. A leader also must be able to set the example for its group that would provide them an understanding regarding the skills

Comparison of Beer Industry in Italy and Canada

Comparison of Beer Industry in Italy and Canada Introduction Beer is one of the most used beverages in the world next to coffee and tea. The beer industry therefore as we can imagine is one of the biggest industries in the world with many competitors inside of the industry. It is not surprising that many different kinds of beer and a variety of brands can be found in both Italy and Canada, and both of the countries has a long history of development of brewery industry as well. In this article, we are going to compare both of the countries markets, industry condition, cultural differences, political background and so forth, all those information will be taken into consideration, and be processed to make the final decision on which county environment is more suitable and beneficial for us to invest into. Some theories are going to be applied to analyse the cultural dimensions of both countries, such as Hofstedes cultural dimensions, and SWOT analysis, Porters Five Forces Model. Methodology What method do you use to compile your factbook and why? The methods i use to compile my factbook is that i are going to apply some frameworks from respected authors that are most applicable to my chosen industry (beer industry) such as Hofstede, SWOT analysis and Porters five forces. What prime theory and approaches do you draw on and why? Hofstedes Cultural Dimensions Hofstede measures the cultural dimensions differences in different countries. There are five dimensions in this framework, namely the Power Distance Index (PDI), the Individualism-Collectivism, Masculinity-Femininity and Uncertainty Avoidance. Since Hofstede measures cultural dimensions, therefore it will be used in the cultural system page of the paper when the cultural aspects are discussed. SWOT Analysis SWOT is the abbreviation for Strengths, Weaknesses, Opportunities and Threats. It is an analytical framework to help summarize in a quick and concise way the risks and opportunities for a certain company, for my case the beer industry in two different countries, Canada and Italy. The SWOT analysis looks into internal factors within the company/industry/country (Strengths and Weaknesses) and external factors outside the company/industry/country (Opportunities and Threats). This method will eventually help us to look at the main positive, (strength and opportunities), and the negative, (weaknesses and threats), sides of both countries when comparing. Initially this should help us decide on which country would be most attractive to invest in the beer industry. For this reason, this method will be used at the end of the paper, which will give us an conclusive overview of the both countries. Porters Five Forces Model Porters five forces model argues that there are five forces in an industry to determine the extent and scale of the competition. These five forces affect the industries attractiveness. It is an efficient tool to analyse competition in the industry. In this model, five forces are the threat of substitute products or services, the threat of the entry of new competitors, the intensity of competitive rivalry, the bargaining power of customers, and the bargaining power of suppliers. The industrys attractiveness is the primary and fundamental factor to deciding the profitability, and in any industry, the rule of competition will be reflected in any of the five competitive forces. The purpose of Porters five forces is to show the attractiveness of the beer industry in both Canada and Italy and to help investors decide in which country to enter in the beer industry, besides it could help companies to develop a particular strategy in the industry, and this theory might be used in chapter whic h deals with market / industry conditions. What method of data collection and analysis do you use and why? The methods i use to collect my data are searching my universitys library modules for useful academic articles and using a mix of articles from authors known through literature and the Theory Tutorials for my Comparative Country Studies course. Of course, the reliable information on Internet is also consulted as additional sources, and i have also analyzed the annual report of the company. The beer industry of Italy and Canada In this section, relevant market conditions that apply to the Italian and Canadian beer sector will be explained. The market can be separated according to different factors like size and attractiveness as well. If we divide the market according the different market shares which individual brewery holds, we can see that there are several main player in the beer industry in both of the countries. Italy Italy is famous for its wines, however, it is not well-known for its own beer. Generally speaking, Italy doesnt consume nearly as much beer as its European neighbour, however, there is a growing trend of consumption for beer in Italy, the beer in Italy is not as widespread as in its European neighbours, mainly because there is a historical preference for wine in the country. Italian breweries have undergone a Renaissance in recent years. In fact, only in the past few years, Italy has started having beer drinking and tasting competitions and many related festivals. Normally, this sort of activity is reserved for wine, however, nowadays beer is earning more and more respect from wine-preferred Italians, and even many young Italians prefer to support their countrys beer industry rather than the wine industry now, still, the Italian beer industry has much space to grow and be developed. There are some brands of beer in Italy, one of the oldest and most recognized breweries is Birra Peroni, which was established in 1846 and the headquarter of Peroni is in Rome. Peronis most famous product is a pilsner-style beer. Nastro Azzuro, which is also one of the few Italian beers that marketed all over the world, Nastro Azzuro, is a rather light style beer, many breweries are crafting darker, heavier beers that are rousing interest from new and experienced beer drinkers alike. In addition to those giant breweries, there are many microbreweries in Italy, and they play a important role and have a great portion of the market as well. A microbrewery particularly gains attention from young Italians is Birrificio Baladin, the brewery appeals to young generation through quirky advertisements and sponsoring international music festivals and young Italians think theres room in the global beer market for some of their most outstanding brews. Canada Traditionally, Canadas largest brewing companies were Labatts and Molson. In 1995, Labatts was purchased by an Belgian company which is called Interbrew and it is now a part of Brazilian-Belgian Anheuser-Busch InBev, the worlds largest brewing company and Molson, the other largest beer company, which was merged with US company Coors in 2005 and created a new company called Molson Coors, which is the worlds fifth largest brewing company now. In 2006, with the purchase of Sleeman Breweries, the largest remaining Canadian brewery was purchased by the Japanese owned Sapporo Brewery, Canadas beer production has been mainly under the control of foreign multinationals. By the end of 2006, nearly 90% of beer sales was of product brewed domestically under licence from non-domestic corporations. American beers brewed under licence dominate much of the market. For instance, Budweiser is brewed under licence in Canada by Labatts and Coors Light by Molson. The market in Canada for domestic beer is dominated by Labatt, Molson and Sleeman, all foreign-owned companies. The largest Canadian-owned brewer, Moosehead breweries, only controls about 5.5% of the Canadian market. Country comparison Macro-economic indicators Economy Canada population 33,487,208 (July 2009 est.). Italy population 58,126,212 (July 2009 est.). Economic freedom Canada world rank 6. Economic freedom Italy world rank 87. Finance Financial freedom for Canada: 80.0. Financial freedom in Italy 60.0 Canada investment freedom 75.0. Italy investment freedom 75.0. Canada Economy -GDP (Purchasing Power Parity) $ 1.335 trillion (2010 est.). Country comparison to the world: 15. $1.297 trillion (2009 est.) $1.33 trillion (2008 est.) -GDP Per capita (PPP) $39,600 (2010 est.) country comparison to the world: 22 $38,700 (2009 est.) $40,000 (2008 est.) -Inflation rate (consumer prices) 1.6% (2010 est.) country comparison to the world: 41 0.3% (2009 est.) Italy Economy -GDP (PPP) $1.782 trillion (2010 est.) country comparison to the world: 11 $1.763 trillion (2009 est.) $1.857 trillion (2008 est.) -GDP per capita (PPP) $30,700 (2010 est.) country comparison to the world: 43 $30,300 (2009 est.) $31,900 (2008 est.) -Inflation rate (consumer prices) 1.4% (2010 est.) country comparison to the world: 32 0.8% (2009 est.) Historical developments Italy Beer is known and drank in Italy very long time ago, Italians brewed and consumed the blond drink. It said that Roman Emperor Agricola was a fan of beer when he was the governor of Britannia, and in 83 AD Roman Emperor Agricola raised to the imperial throne and came back to Italy, he took three master brewers with him from Glevum of which the ancient name Gloucester and opened the first real pub in Italy. Nowadays beer is especially loved by young people in Italy, which has been seen as an informal drink, compared to the wine which is alway used in much more formal places. Aperitif and wine tasting have now gained back to wine many casual drinkers, however, until a few years ago, young Italians actually drank more beer than wine. Pub-styled bars are still very popular in Italy and they have spread the love for the more exotic brands of beer: many of them serve Japanese, German, Australian and East European beers along with the more known ones brewed in the UK and Belgium. At least one bottle of Birra cinese (Chinese beer) is served on every table of every Chinese restaurant. Canada Beer was first introduced to Canada by European settlers in the seventeenth century, as Canada had an ideal climate for making and storing beer before refrigeration was introduced. The first commercial brewery was built by Jean Talon in Quebec City, in the year 1668. Over a century later a number of commercial brewers thrived, including some that became the staple of the Canadian industry: John Molson founded a brewery in Montreal in 1786, Alexander Keith inHalifax in 1820, Thomas Carling in London in 1840, John Kinder Labatt in 1847, also in London, Susannah Oland in Halifax in 1867, and Eugene OKeefe in Toronto in 1891. The very first patent to be issued by the Canadian government on July 6, 1842, was to one G. Riley for an improved method of brewing ale, beer, porter, and other maltliquors. Prohibition in Canada did not last as long as in the U.S. and was largely over by the mid 1920s (apart from Prince Edward Island, where it ran from 1901 to 1948). Nevertheless, it had a similar effect of leaving very few brewers, and it was only in the late twentieth century that there has been a revival and microbreweries have started. Brewpubs are still illegal in some provinces. Cultural system Hofstedes Cultural Dimensions of Italy and Canada Power Distance Individualism Masculinity Uncertainty Avoidance Italy Higher More collective More masculine Strong Canada Lower More individualistic More feminine Weak Power distance Canada is lower on the Hofstedes power distance index than Italy, Italy falls in the middle on the index overall. Italian seems to expect differences in power between people. Canadas Power Distance (PDI) is relatively low, with an index of 39, compared to a world average of 55. This is indicative of a greater equality between societal levels, including government, organizations, and even within families. This orientation reinforces a cooperative interaction across power levels and creates a more stable cultural environment. Individualism The more collective nature of Italy compared to Canada can be seen in many ways. It is not uncommon for grown children to live with their parents for years. Italian businesses are primarily owned by individuals and families. Business is preferably done with people with which one is familiar. Unacquainted guests will not be invited into an Italian home. Coffee or dinner will be taken with non-family members at a cafe or restaurant. Canada has Individualism (IDV) as the highest ranking (80) Hofstede Dimension, and is indicative of a society with a more individualistic attitude and relatively loose bonds with others. The populace is more self-reliant and looks out for themselves and their close family members. Masculinity Italy is a fairly masculine society and ranks slightly higher on this index than Canada. Many Italian men still treat women with gallantry and value machismo. Although women have entered the workforce, their numbers are still small and few are in upper echelon positions. Italian household are the sole domain of women; Italian women for the most part cook, clean and care for the children. Italians place a prime importance on material possessions. It is very important to look good in Italy. However, like a more feminine culture, Italians also know how to take time to appreciate the good things in life. Italians work in order to live rather than living to work. Ambition is not prevalent in Italian culture. Therefore i assume that beer as a informal beverage, it is more popular under this kind of cultural background rather than more formal cultural background countries. Uncertainty Avoidance Italy avoids uncertainly more strongly than Canada. By and large Italians prefer to do business with people they know. In addition, Italians prefer to know something about an individual before they speak with him/her on the phone. Thus, in business one should send an introductory fax and follow-up with a phone call. Political/Government System Beer or malt liquor, is defined as all fermented liquor brewed in whole or in part from malt for the purposes of the Excise Act, grain or any saccharine matter without any process of distillation, but does not include wine. Italian Alcohol Taxes and Duties Legislative Framework Alcohol Duty Beer (5% ABV or 12ËÅ ¡ Plato) 0.12Â £ per pint Wine (bottle 11.5% ABV) 0.00Â £ per 75 cl As we can see in the table of different rates of duty applies to beer in Italy, which contains following level of duty. Italy is a member of the European Union, therefore it shares the Common External Tariff regime. EU duties are charged by the Italian Customs Agency on the CIF (cost, insurance and freight) value of the product imported into Italy. The Alcohol Act (2001) bans TV and radio advertising of alcoholic products between 4PM and 9PM and prohibits alcohol advertisements from being shown on TV within 15 minutes before or after any childrens programs. The Act also requires a self-regulatory code to be provided jointly by media companies, advertising agencies and advertisers to govern alcohol advertising. For the legal drinking age, there is no minimum age of legal drinking. And the legal purchasing age of alcohol is 16 and 18. South Tyrol prohibits both serving and purchase for people under the age of 18 and to everybody in a state of inebriation. Milan has enforced a ban on those under 16 purchasing alcohol. Heavy fines are given to proprieters and parents if a transaction is completed. Canadian Alcohol Taxes and Duties Legislative Framework Beer Duty Up to 1.2% alcohol $2.591/hectolitre 1.2% to 2.5% alcohol $13.990/hectolitre Over 2.5% alcohol $27.985/hectolitre As we can see in the table of different rates of duty applies to beer, which contains following level of duty: (1) more than 2.5% absolute ethyl alcohol by volume; (2) more than 1.2% but not more than 2.5% absolute ethyl alcohol by volume; and (3) less than 1.2% absolute ethyl alcohol by volume, and for all beer containing more than 2.5% absolute ethyl alcohol by volume, the rate of excise duty is currently $27.985 per hectolitre. However, excise duties are not imposed on beer provided it is brewed by a person for personal or family use or to be given away without charge and is not for sale commercially. Canadian government showed how highly they value beer production and its breweries by lowering the taxes exercised on beer production. This is a benefit to the industry. As one of the leaders of the whole economy of Canada, the beer sector is likely to maintain these tax benefits and other benefits might be offered as well to the beer sector to develop the Canadian beer industry. In Canada, alcohol was taxed pursuant to the Excise Act previously. However, a new regime in Canada for the federal taxation of certain alcohol, including spirits and wines, was introduced in the Excise Act, 2001, which was implemented effective July 1, 2003. Excise duties on beer (and malt liquor) continue to be imposed under the Excise Act. Generally, different excise duty treatment applies to alcohol for non-beverage use. A licence is required authorizing certain alcohol operations under both the Excise Act, 2001, and the Excise Act. For beer, a licence is only required under the Excise Act for the commercial operation as a brewery, for example, the place where beer is manufactured. All brewery licensees are required to post and maintain security with the Canadian government. The amount of security is set at a minimum of $5,000. Generally, beer is subject to an excise duty that is imposed and becomes payable during the production process. The legal drinking and purchasing age in Canada are both 19. However, In some areas such as Ontario, Saskatchewan, British Columbia, Newfoundland and Labrador, Nova Scotia, Northwest Territories, Yukon, and Nunavut, underage drinking under parental supervision is permitted, with some restrictions, on ones own property in the provinces of New Brunswick andOntario and at home in the provinces of Prince Edward Island, British Columbia and Saskatchewan. InBritish Columbia, only children of the supervising parents, not any other minors such as guests, are allowed underage drinking. Consumption of alcohol in another persons home is subject to other laws. Major players The brewing industry had become extremely concentrated in Canada by the 1970s, being dominated by just three major companies, which are Molson, Labatt, and Carling-OKeefe. Canadas largest brewing companies were Labatts and Molson as we mentioned in the previous overview of industry condition of both countries. In 1995, Labatts was purchased by an Belgian company which is called Interbrew which is now part of Brazilian-Belgian Anheuser-Busch InBev, the worlds largest brewing company and Molson, the other largest beer company, which was merged with US company Coors in 2005 and created a new company called Molson Coors, and it is the worlds fifth largest brewing company now. In 2006, the largest remaining Canadian brewery was purchased by the Japanese owned Sapporo Brewery, Canadas beer production has been mainly under the control of foreign multinationals. By the end of 2006, nearly 90% of beer sales was of product brewed domestically under licence from non-domestic corporations. American beers brewed under licence dominate much of the market. For instance, Budweiser is brewed under licence in Canada by Labatts and Coors Light by Molson. The market in Canada for domestic beer is dominated by Labatt, Molson and Sleeman, all foreign-owned companies. The largest Canadian-owned brewer, Moosehead breweries, only controls small portion of the Canadian market. Italy hosts a few breweries, with the largest owned by the best known Italian and foreign brands. Peronis brewery produces the best known Italian beer: la Peroni. Peroni also produces the premium beer Mastro Azzurro and the brands WÃ ¼hrer, and lesser known Raffo. Heineken Italy brews its famous Heineken, but has also acquired the brands Moretti, Ichnusa, Birra Messina and Dreher. Carslberg owns a few brewerys in Northern and Central Italy. In Northern Italy, Forst brews its own branded beer as well as the famed Menabrea. In Friuli Venezia Giulia the latest brand of Italian beer Birra Castello, has been active since 1997. Along with these big players, there are lots of microbreweries small scale breweries that produce small quantities of beer, they also have premium quality. Major finding of comparison and recommendations Making a decision in which country to invest is not so easy, because of all those different variances in both of the counties, some of the variances are strength for Canada, however, some of them are favorable for Italy. In the first place, the tax rates between Canada and Italy differ. In Canada the rates are relatively lower than in Italy due to the fact that the tax level is relatively high in the European context. In addition to this, the Canadian government reduced taxes even more to benefit Canadian brewers. Secondly, when a look is taken at macroeconomic indicators like GDP per capita we see that Canada is a bit more favorable. However, since this differences are so small, both of the countries that we have chosen are developed countries, and GDP per capita which above certain level has a relatively weak influence on the consumption of beer. Therefore, this factor is not likely to have a significant influences on the desicion of investment in the countries. Thirdly, the population above legal drinking age in the markets has been calculated starting from the age at which alcohol consumption is allowed. This would mean that we start counting the population starting from 18 years old in Italy (some area start from 16 years old) and 19 years old in Canada. We find that the relative amount of people able to purchase and consume alcohol in Italy is larger than in Canada, because the whole population is larger in Italy than in Canada, and the population of legal drinking age are also higher in Italy than in Canada, therefore, the potential market in Italy are larger than in Canada. Lastly, when comparing markets according to its players and their market shares we find that Canada has a more concentrated market with high market share large players and many small players. Italy on the other hand has two old players with a high share and one smaller player while the rest of the market consists of really small players. It would therefore be an advantage to invest in the Italian market; trying to gain and increase a market share because of the fact that there are many foreign players already play very important roles in the Canadian market, Molson Coors Brewing company and Anheuser-Busch InBev have a market share of 42,70 and 42,20 percent respectively. Third place is hold by Moosehead Brewing company with a share of 5,90 percent. These three main players hold 90,8 percent of the market in total by volume. Taking all those facts into consideration, i would say that Italy would be the country that we are going to invest in. As we explained above, we analysed both countries SWOT, for Italy, the strength is market size, the weakness is relatively higher tax rate on alcohol, and the opportunities is that there are only two big old players and some extreme small players, gaining or increasing a share is relatively easy, and the market of Italy are more potential, because Italy still on the growing phase of beer industry. Moreover, since the age allowed to drink in Italy starting from the age of 18 and in some areas are even lower to 16, and with more population in Italy, therefore the market is bigger in Italy than in Canada. In addition, nowadays the Italian government highly values the Italian beer industry due to the impact on its economy and therefore taxes are getting lower and lower. And the threats of Italy is that new public policy may harm the beer industry, such as the advertising policy we mentioned before which bans the ads of alcohol in specific period of time on TV. Comparison of Beer Industry in Italy and Canada Comparison of Beer Industry in Italy and Canada Introduction Beer is one of the most used beverages in the world next to coffee and tea. The beer industry therefore as we can imagine is one of the biggest industries in the world with many competitors inside of the industry. It is not surprising that many different kinds of beer and a variety of brands can be found in both Italy and Canada, and both of the countries has a long history of development of brewery industry as well. In this article, we are going to compare both of the countries markets, industry condition, cultural differences, political background and so forth, all those information will be taken into consideration, and be processed to make the final decision on which county environment is more suitable and beneficial for us to invest into. Some theories are going to be applied to analyse the cultural dimensions of both countries, such as Hofstedes cultural dimensions, and SWOT analysis, Porters Five Forces Model. Methodology What method do you use to compile your factbook and why? The methods i use to compile my factbook is that i are going to apply some frameworks from respected authors that are most applicable to my chosen industry (beer industry) such as Hofstede, SWOT analysis and Porters five forces. What prime theory and approaches do you draw on and why? Hofstedes Cultural Dimensions Hofstede measures the cultural dimensions differences in different countries. There are five dimensions in this framework, namely the Power Distance Index (PDI), the Individualism-Collectivism, Masculinity-Femininity and Uncertainty Avoidance. Since Hofstede measures cultural dimensions, therefore it will be used in the cultural system page of the paper when the cultural aspects are discussed. SWOT Analysis SWOT is the abbreviation for Strengths, Weaknesses, Opportunities and Threats. It is an analytical framework to help summarize in a quick and concise way the risks and opportunities for a certain company, for my case the beer industry in two different countries, Canada and Italy. The SWOT analysis looks into internal factors within the company/industry/country (Strengths and Weaknesses) and external factors outside the company/industry/country (Opportunities and Threats). This method will eventually help us to look at the main positive, (strength and opportunities), and the negative, (weaknesses and threats), sides of both countries when comparing. Initially this should help us decide on which country would be most attractive to invest in the beer industry. For this reason, this method will be used at the end of the paper, which will give us an conclusive overview of the both countries. Porters Five Forces Model Porters five forces model argues that there are five forces in an industry to determine the extent and scale of the competition. These five forces affect the industries attractiveness. It is an efficient tool to analyse competition in the industry. In this model, five forces are the threat of substitute products or services, the threat of the entry of new competitors, the intensity of competitive rivalry, the bargaining power of customers, and the bargaining power of suppliers. The industrys attractiveness is the primary and fundamental factor to deciding the profitability, and in any industry, the rule of competition will be reflected in any of the five competitive forces. The purpose of Porters five forces is to show the attractiveness of the beer industry in both Canada and Italy and to help investors decide in which country to enter in the beer industry, besides it could help companies to develop a particular strategy in the industry, and this theory might be used in chapter whic h deals with market / industry conditions. What method of data collection and analysis do you use and why? The methods i use to collect my data are searching my universitys library modules for useful academic articles and using a mix of articles from authors known through literature and the Theory Tutorials for my Comparative Country Studies course. Of course, the reliable information on Internet is also consulted as additional sources, and i have also analyzed the annual report of the company. The beer industry of Italy and Canada In this section, relevant market conditions that apply to the Italian and Canadian beer sector will be explained. The market can be separated according to different factors like size and attractiveness as well. If we divide the market according the different market shares which individual brewery holds, we can see that there are several main player in the beer industry in both of the countries. Italy Italy is famous for its wines, however, it is not well-known for its own beer. Generally speaking, Italy doesnt consume nearly as much beer as its European neighbour, however, there is a growing trend of consumption for beer in Italy, the beer in Italy is not as widespread as in its European neighbours, mainly because there is a historical preference for wine in the country. Italian breweries have undergone a Renaissance in recent years. In fact, only in the past few years, Italy has started having beer drinking and tasting competitions and many related festivals. Normally, this sort of activity is reserved for wine, however, nowadays beer is earning more and more respect from wine-preferred Italians, and even many young Italians prefer to support their countrys beer industry rather than the wine industry now, still, the Italian beer industry has much space to grow and be developed. There are some brands of beer in Italy, one of the oldest and most recognized breweries is Birra Peroni, which was established in 1846 and the headquarter of Peroni is in Rome. Peronis most famous product is a pilsner-style beer. Nastro Azzuro, which is also one of the few Italian beers that marketed all over the world, Nastro Azzuro, is a rather light style beer, many breweries are crafting darker, heavier beers that are rousing interest from new and experienced beer drinkers alike. In addition to those giant breweries, there are many microbreweries in Italy, and they play a important role and have a great portion of the market as well. A microbrewery particularly gains attention from young Italians is Birrificio Baladin, the brewery appeals to young generation through quirky advertisements and sponsoring international music festivals and young Italians think theres room in the global beer market for some of their most outstanding brews. Canada Traditionally, Canadas largest brewing companies were Labatts and Molson. In 1995, Labatts was purchased by an Belgian company which is called Interbrew and it is now a part of Brazilian-Belgian Anheuser-Busch InBev, the worlds largest brewing company and Molson, the other largest beer company, which was merged with US company Coors in 2005 and created a new company called Molson Coors, which is the worlds fifth largest brewing company now. In 2006, with the purchase of Sleeman Breweries, the largest remaining Canadian brewery was purchased by the Japanese owned Sapporo Brewery, Canadas beer production has been mainly under the control of foreign multinationals. By the end of 2006, nearly 90% of beer sales was of product brewed domestically under licence from non-domestic corporations. American beers brewed under licence dominate much of the market. For instance, Budweiser is brewed under licence in Canada by Labatts and Coors Light by Molson. The market in Canada for domestic beer is dominated by Labatt, Molson and Sleeman, all foreign-owned companies. The largest Canadian-owned brewer, Moosehead breweries, only controls about 5.5% of the Canadian market. Country comparison Macro-economic indicators Economy Canada population 33,487,208 (July 2009 est.). Italy population 58,126,212 (July 2009 est.). Economic freedom Canada world rank 6. Economic freedom Italy world rank 87. Finance Financial freedom for Canada: 80.0. Financial freedom in Italy 60.0 Canada investment freedom 75.0. Italy investment freedom 75.0. Canada Economy -GDP (Purchasing Power Parity) $ 1.335 trillion (2010 est.). Country comparison to the world: 15. $1.297 trillion (2009 est.) $1.33 trillion (2008 est.) -GDP Per capita (PPP) $39,600 (2010 est.) country comparison to the world: 22 $38,700 (2009 est.) $40,000 (2008 est.) -Inflation rate (consumer prices) 1.6% (2010 est.) country comparison to the world: 41 0.3% (2009 est.) Italy Economy -GDP (PPP) $1.782 trillion (2010 est.) country comparison to the world: 11 $1.763 trillion (2009 est.) $1.857 trillion (2008 est.) -GDP per capita (PPP) $30,700 (2010 est.) country comparison to the world: 43 $30,300 (2009 est.) $31,900 (2008 est.) -Inflation rate (consumer prices) 1.4% (2010 est.) country comparison to the world: 32 0.8% (2009 est.) Historical developments Italy Beer is known and drank in Italy very long time ago, Italians brewed and consumed the blond drink. It said that Roman Emperor Agricola was a fan of beer when he was the governor of Britannia, and in 83 AD Roman Emperor Agricola raised to the imperial throne and came back to Italy, he took three master brewers with him from Glevum of which the ancient name Gloucester and opened the first real pub in Italy. Nowadays beer is especially loved by young people in Italy, which has been seen as an informal drink, compared to the wine which is alway used in much more formal places. Aperitif and wine tasting have now gained back to wine many casual drinkers, however, until a few years ago, young Italians actually drank more beer than wine. Pub-styled bars are still very popular in Italy and they have spread the love for the more exotic brands of beer: many of them serve Japanese, German, Australian and East European beers along with the more known ones brewed in the UK and Belgium. At least one bottle of Birra cinese (Chinese beer) is served on every table of every Chinese restaurant. Canada Beer was first introduced to Canada by European settlers in the seventeenth century, as Canada had an ideal climate for making and storing beer before refrigeration was introduced. The first commercial brewery was built by Jean Talon in Quebec City, in the year 1668. Over a century later a number of commercial brewers thrived, including some that became the staple of the Canadian industry: John Molson founded a brewery in Montreal in 1786, Alexander Keith inHalifax in 1820, Thomas Carling in London in 1840, John Kinder Labatt in 1847, also in London, Susannah Oland in Halifax in 1867, and Eugene OKeefe in Toronto in 1891. The very first patent to be issued by the Canadian government on July 6, 1842, was to one G. Riley for an improved method of brewing ale, beer, porter, and other maltliquors. Prohibition in Canada did not last as long as in the U.S. and was largely over by the mid 1920s (apart from Prince Edward Island, where it ran from 1901 to 1948). Nevertheless, it had a similar effect of leaving very few brewers, and it was only in the late twentieth century that there has been a revival and microbreweries have started. Brewpubs are still illegal in some provinces. Cultural system Hofstedes Cultural Dimensions of Italy and Canada Power Distance Individualism Masculinity Uncertainty Avoidance Italy Higher More collective More masculine Strong Canada Lower More individualistic More feminine Weak Power distance Canada is lower on the Hofstedes power distance index than Italy, Italy falls in the middle on the index overall. Italian seems to expect differences in power between people. Canadas Power Distance (PDI) is relatively low, with an index of 39, compared to a world average of 55. This is indicative of a greater equality between societal levels, including government, organizations, and even within families. This orientation reinforces a cooperative interaction across power levels and creates a more stable cultural environment. Individualism The more collective nature of Italy compared to Canada can be seen in many ways. It is not uncommon for grown children to live with their parents for years. Italian businesses are primarily owned by individuals and families. Business is preferably done with people with which one is familiar. Unacquainted guests will not be invited into an Italian home. Coffee or dinner will be taken with non-family members at a cafe or restaurant. Canada has Individualism (IDV) as the highest ranking (80) Hofstede Dimension, and is indicative of a society with a more individualistic attitude and relatively loose bonds with others. The populace is more self-reliant and looks out for themselves and their close family members. Masculinity Italy is a fairly masculine society and ranks slightly higher on this index than Canada. Many Italian men still treat women with gallantry and value machismo. Although women have entered the workforce, their numbers are still small and few are in upper echelon positions. Italian household are the sole domain of women; Italian women for the most part cook, clean and care for the children. Italians place a prime importance on material possessions. It is very important to look good in Italy. However, like a more feminine culture, Italians also know how to take time to appreciate the good things in life. Italians work in order to live rather than living to work. Ambition is not prevalent in Italian culture. Therefore i assume that beer as a informal beverage, it is more popular under this kind of cultural background rather than more formal cultural background countries. Uncertainty Avoidance Italy avoids uncertainly more strongly than Canada. By and large Italians prefer to do business with people they know. In addition, Italians prefer to know something about an individual before they speak with him/her on the phone. Thus, in business one should send an introductory fax and follow-up with a phone call. Political/Government System Beer or malt liquor, is defined as all fermented liquor brewed in whole or in part from malt for the purposes of the Excise Act, grain or any saccharine matter without any process of distillation, but does not include wine. Italian Alcohol Taxes and Duties Legislative Framework Alcohol Duty Beer (5% ABV or 12ËÅ ¡ Plato) 0.12Â £ per pint Wine (bottle 11.5% ABV) 0.00Â £ per 75 cl As we can see in the table of different rates of duty applies to beer in Italy, which contains following level of duty. Italy is a member of the European Union, therefore it shares the Common External Tariff regime. EU duties are charged by the Italian Customs Agency on the CIF (cost, insurance and freight) value of the product imported into Italy. The Alcohol Act (2001) bans TV and radio advertising of alcoholic products between 4PM and 9PM and prohibits alcohol advertisements from being shown on TV within 15 minutes before or after any childrens programs. The Act also requires a self-regulatory code to be provided jointly by media companies, advertising agencies and advertisers to govern alcohol advertising. For the legal drinking age, there is no minimum age of legal drinking. And the legal purchasing age of alcohol is 16 and 18. South Tyrol prohibits both serving and purchase for people under the age of 18 and to everybody in a state of inebriation. Milan has enforced a ban on those under 16 purchasing alcohol. Heavy fines are given to proprieters and parents if a transaction is completed. Canadian Alcohol Taxes and Duties Legislative Framework Beer Duty Up to 1.2% alcohol $2.591/hectolitre 1.2% to 2.5% alcohol $13.990/hectolitre Over 2.5% alcohol $27.985/hectolitre As we can see in the table of different rates of duty applies to beer, which contains following level of duty: (1) more than 2.5% absolute ethyl alcohol by volume; (2) more than 1.2% but not more than 2.5% absolute ethyl alcohol by volume; and (3) less than 1.2% absolute ethyl alcohol by volume, and for all beer containing more than 2.5% absolute ethyl alcohol by volume, the rate of excise duty is currently $27.985 per hectolitre. However, excise duties are not imposed on beer provided it is brewed by a person for personal or family use or to be given away without charge and is not for sale commercially. Canadian government showed how highly they value beer production and its breweries by lowering the taxes exercised on beer production. This is a benefit to the industry. As one of the leaders of the whole economy of Canada, the beer sector is likely to maintain these tax benefits and other benefits might be offered as well to the beer sector to develop the Canadian beer industry. In Canada, alcohol was taxed pursuant to the Excise Act previously. However, a new regime in Canada for the federal taxation of certain alcohol, including spirits and wines, was introduced in the Excise Act, 2001, which was implemented effective July 1, 2003. Excise duties on beer (and malt liquor) continue to be imposed under the Excise Act. Generally, different excise duty treatment applies to alcohol for non-beverage use. A licence is required authorizing certain alcohol operations under both the Excise Act, 2001, and the Excise Act. For beer, a licence is only required under the Excise Act for the commercial operation as a brewery, for example, the place where beer is manufactured. All brewery licensees are required to post and maintain security with the Canadian government. The amount of security is set at a minimum of $5,000. Generally, beer is subject to an excise duty that is imposed and becomes payable during the production process. The legal drinking and purchasing age in Canada are both 19. However, In some areas such as Ontario, Saskatchewan, British Columbia, Newfoundland and Labrador, Nova Scotia, Northwest Territories, Yukon, and Nunavut, underage drinking under parental supervision is permitted, with some restrictions, on ones own property in the provinces of New Brunswick andOntario and at home in the provinces of Prince Edward Island, British Columbia and Saskatchewan. InBritish Columbia, only children of the supervising parents, not any other minors such as guests, are allowed underage drinking. Consumption of alcohol in another persons home is subject to other laws. Major players The brewing industry had become extremely concentrated in Canada by the 1970s, being dominated by just three major companies, which are Molson, Labatt, and Carling-OKeefe. Canadas largest brewing companies were Labatts and Molson as we mentioned in the previous overview of industry condition of both countries. In 1995, Labatts was purchased by an Belgian company which is called Interbrew which is now part of Brazilian-Belgian Anheuser-Busch InBev, the worlds largest brewing company and Molson, the other largest beer company, which was merged with US company Coors in 2005 and created a new company called Molson Coors, and it is the worlds fifth largest brewing company now. In 2006, the largest remaining Canadian brewery was purchased by the Japanese owned Sapporo Brewery, Canadas beer production has been mainly under the control of foreign multinationals. By the end of 2006, nearly 90% of beer sales was of product brewed domestically under licence from non-domestic corporations. American beers brewed under licence dominate much of the market. For instance, Budweiser is brewed under licence in Canada by Labatts and Coors Light by Molson. The market in Canada for domestic beer is dominated by Labatt, Molson and Sleeman, all foreign-owned companies. The largest Canadian-owned brewer, Moosehead breweries, only controls small portion of the Canadian market. Italy hosts a few breweries, with the largest owned by the best known Italian and foreign brands. Peronis brewery produces the best known Italian beer: la Peroni. Peroni also produces the premium beer Mastro Azzurro and the brands WÃ ¼hrer, and lesser known Raffo. Heineken Italy brews its famous Heineken, but has also acquired the brands Moretti, Ichnusa, Birra Messina and Dreher. Carslberg owns a few brewerys in Northern and Central Italy. In Northern Italy, Forst brews its own branded beer as well as the famed Menabrea. In Friuli Venezia Giulia the latest brand of Italian beer Birra Castello, has been active since 1997. Along with these big players, there are lots of microbreweries small scale breweries that produce small quantities of beer, they also have premium quality. Major finding of comparison and recommendations Making a decision in which country to invest is not so easy, because of all those different variances in both of the counties, some of the variances are strength for Canada, however, some of them are favorable for Italy. In the first place, the tax rates between Canada and Italy differ. In Canada the rates are relatively lower than in Italy due to the fact that the tax level is relatively high in the European context. In addition to this, the Canadian government reduced taxes even more to benefit Canadian brewers. Secondly, when a look is taken at macroeconomic indicators like GDP per capita we see that Canada is a bit more favorable. However, since this differences are so small, both of the countries that we have chosen are developed countries, and GDP per capita which above certain level has a relatively weak influence on the consumption of beer. Therefore, this factor is not likely to have a significant influences on the desicion of investment in the countries. Thirdly, the population above legal drinking age in the markets has been calculated starting from the age at which alcohol consumption is allowed. This would mean that we start counting the population starting from 18 years old in Italy (some area start from 16 years old) and 19 years old in Canada. We find that the relative amount of people able to purchase and consume alcohol in Italy is larger than in Canada, because the whole population is larger in Italy than in Canada, and the population of legal drinking age are also higher in Italy than in Canada, therefore, the potential market in Italy are larger than in Canada. Lastly, when comparing markets according to its players and their market shares we find that Canada has a more concentrated market with high market share large players and many small players. Italy on the other hand has two old players with a high share and one smaller player while the rest of the market consists of really small players. It would therefore be an advantage to invest in the Italian market; trying to gain and increase a market share because of the fact that there are many foreign players already play very important roles in the Canadian market, Molson Coors Brewing company and Anheuser-Busch InBev have a market share of 42,70 and 42,20 percent respectively. Third place is hold by Moosehead Brewing company with a share of 5,90 percent. These three main players hold 90,8 percent of the market in total by volume. Taking all those facts into consideration, i would say that Italy would be the country that we are going to invest in. As we explained above, we analysed both countries SWOT, for Italy, the strength is market size, the weakness is relatively higher tax rate on alcohol, and the opportunities is that there are only two big old players and some extreme small players, gaining or increasing a share is relatively easy, and the market of Italy are more potential, because Italy still on the growing phase of beer industry. Moreover, since the age allowed to drink in Italy starting from the age of 18 and in some areas are even lower to 16, and with more population in Italy, therefore the market is bigger in Italy than in Canada. In addition, nowadays the Italian government highly values the Italian beer industry due to the impact on its economy and therefore taxes are getting lower and lower. And the threats of Italy is that new public policy may harm the beer industry, such as the advertising policy we mentioned before which bans the ads of alcohol in specific period of time on TV.

The Vietnam War: The Tet Offensive :: Vietnam War Essays

In the mid to late 1960's the Vietnam Conflict was greatly controversial. This is mainly due to the fact that it was an undeclared war and was being fought with unclear objectives. It was fought mainly by Viet Cong guerillas and the NVA from the North and by the USA and ARVN from the south. Throughout the conflict it appeared as if the South was prevailing; up until one climatic battle that turned out to be a failure militarily; it is known as the Tet Offensive. The Tet Offensive started with diversionary attacks on Khe Sanh on January 21. It began with a concentrated artillery barrage and entrenching troops around the perimeter so that they could prepare further assaults on Khe Sanh's defenses. This caused the US to move their troops up in order to defend against the enemy intrusion. By causing the US to move their troops from their positions in the other major cities, the North had created an opportunity for an attack on all of those cites. Then next step of the plan was to infiltrate the major cities of the South like Saigon and Hue with VC and NVA soldiers. It is amazing how effectively the VC and NVA snuck their soldiers into the cities, because only a small number of them actually got caught. They pulled this off by sending their men in slowly, mostly by twos or threes, disguised as refugees, peasants, workers, and ARVN soldiers on holiday. Their weapons were smuggled in separately in flower carts, coffins, and trucks that looked as if they were filled with food for the civilians. All-in-all the amount of troops in these cities equaled about 5 battalions. Once the North had accomplished its goals of distracting the United States soldiers and infiltrating its guarded cities they decided to attack; they chose a day designated for truce, the Vietnamese New Year of Tet. On January 31st, in the early hours of the morning, the NVA and VC troops and commandoes began the Tet Offensive by attacking virtually every major city and town; including most of the major bases and airfields. Most of the attacks made came by total surprise and caused a maelstrom of chaos among the US soldiers who attempted to defend their posts. An example of one of these attacks is the one launched against the US embassy in Saigon. In Saigon, nineteen VC commandoes attempted to blast their way through the main doors of the US embassy and killed two of the 5 MP's on duty.

Napoleon and Modern Society Essay

Benjamin Franklin once said â€Å"They that can give up essential liberty to obtain a little safety deserve neither liberty nor safety. † I could not agree more with this quote. There have been so many countries that have fought for their freedom, including the U. S. and France, but the question is how quickly these countries would be able to sacrifice those hard fought liberties for their safety. When comparing France under Napoleons reign and the U. S. after September 11th you find that one thing they have in common was that the people were in a state of uncertainty and confusion. Both countries had lost loved ones, both countries felt unsafe and scared. In that situation, the people turn to the government for help just as a small child turns to their parent when they feel scared. What a lot of people don’t realize is that you can trust your government to help you, but even the best of people can be corrupted by power. Napoleon Bonaparte, the greatest military genius of his time, came to power in France in 1799. The people of France were sick of the bloodshed of war, and hated their government. They were in limbo, stuck and unsure what to do next. That’s when Napoleon caught their eye. He was a young commander and chief of all the French forces, and he won every fight. He was someone who displayed strong leadership skills, and the people were drawn to him. One thing about Napoleon that holds true is that he knew that he was a â€Å"military genius†. He pushed his luck multiple times especially when he convinced the Directory (France’s Government) that he could cut off British trade to Asia by occupying Egypt. He ended up being defeated, but when he slipped away to France he made sure that that loss was wiped clean of his record. With the help of the people he overthrew the French Government; he established a consulate of three men to govern France. Of course he was the First Consul, who held all the power. But like many corrupt leaders of the past, Napoleon started getting influence by power. He did many helpful things like modernizing the government; he founded the bank of France, and reorganized higher education. But what some people don’t notice when reading about these things is that in the new school system, the children were taught respect and discipline, they were being brainwashed to a certain extent to respect their government. Napoleon established something called the Napoleonic Code. It was established in 1804, and the code forbade privileges based on birth, allowed freedom of religion, and specified that government jobs go to the most â€Å"qualified†. The people of France followed Napoleons lead because he showed that promise of being a good leader in the beginning. He gave the people hope that they would see better days, and they did to a certain extent. But one mistake they made was giving up their freedoms to do so. They wanted change so badly that they were willing to sacrifice their freedoms! Now I understand that the French people had been through the worst of worst, and Napoleon took advantage of that to a certain extent. French history shows that without law as the foundation, a society is compelled to use means of violence to bring human freedom. More bloodshed was the last thing France needed, but returning one of my first thoughts, they were in a state of uncertainty and confusion. Now in America, we all know about how we fought for our freedoms in the revolutionary war. Freedom in America is why all kinds of people immigrated over. America was a â€Å"Safe† place. I think for all of us, September 11th came a huge shock. My generation is one of the last that are able to remember that day. Never had there been something like this before, never had America suffered through a National Crises. The once safe place was not safe anymore. The American people entered into the same uncertainty and confusion the French had been in. We turned to our government for help; no matter what we had to sacrifice we wanted our safety to be returned. That was a big mistake. A poll was taken in 2011 for the anniversary of September 11, regarding our freedoms. 76% percent of people believed that our country is headed in the wrong direction. When asked how much confidence they have in the people in charge, only 14% had a great deal of confidence in our Executive Branch of Government and only 5% percent in our congress. Not surprisingly 65% have a great deal of confidence in our military. I think the most surprising of all would be when asked the question â€Å"if someone from another country were to ask you to make a list of specific rights and freedoms you have as a resident of the United States, what would be the first think you would put on the list? † 48% of people answered freedom of speech/expression/opinions, basically the 1st amendment. 6% of people didn’t even know. When I considered which is worse; a domineering government or the attitudes of the people who will allow themselves to be dominate, I have to say that I think the second one is the worst. The people of the domineering government know what they are getting into, they know they don’t have a lot of freedom, but what is terrible is people having these freedoms and giving them up. If America stays on the path that is on, we are headed into a dark future. People need to open their eyes and see that counties like France who fought over and over again for freedom and then simply gave it up, ended up in a place we don’t want to be in. We have the freedoms so many people die for every day, and we are willing to sacrifice that for safety. Safety is important, but what is even worse is not being able to choose.

Marketing Strategies for the New Economy Essay

Past paper: Discuss the advantages and disadvantages of the new economy for marketers (60%). How might companies develop a new economy strategy for their products or services (40%)? Illustrate your answer with examples. * Does every company need a new-economy strategy * Definition: new economy means the industries that stimulate the development or play an important role in electronic commerce and the internet, market computer hardware and software, and provide any of growing arrays of telecommunications services. E.g. dot-com retailers—Amazon, web portals—Google and Yahoo! * The growing adoption of new-economy technologies in consumer and commercial sectors illustrates the importance of an internet strategy. E.g. high-speed broadband connection is revolutionizing the possibilities of what the internet can offer, in U.S. 2010, more than 70% households wanted to be broadband connected, compared to 31% in 2004. * The growing market acceptance of the internet and other new-economy technologies and the inherent advantages that they bring suggest that nearly every company needs to examine how it will be affected by and can take advantage of these new technologies. * Forms of e-commerce: B2B (Cisco) C2B (Priceline/ www.elance.com) B2C (Amazon) C2C(eBay) * E business models: Bricks and Mortar only; Bricks and back up clicks; Bricks and clicks and clicks only. * Threats or opportunities? (seven attractive elements) 1) The syndication of information (lies at the heart of e-commerce business models) * Syndication involves the sales of the same good (information good) to many customers, who may then combine it with information from other sources and distribute it. * Why syndication is important: a) Syndication delivers informational goods, variable cost of which is zero. b) Syndication process can be automated and digitized, enabling syndicated networks to be created, expanded, and flexibly adapted far more quickly than physical goods. * Syndication via the internet opens up endless opportunities for markets, replacing scarcity with abundance,  processing the information timely and can be distributed everywhere. * However, companies should identify and occupy the most important niches in syndication networks, which can maximize the number and strength of links to other companies and customers. 2) Increasing returns to scale of network products * Positive network effect (network externality): the characteristic of informational networks—a product becomes more valuable as the number of users increases. * Companies that can identify and exploit opportunities where they benefit from the increasing returns to scale that result from positive network effects can sometimes grow quickly on relatively modest capital investment. * Though some companies received lofty valuations, most are struggling to find a business model that actually makes any money. 3) The ability to efficiently personalize * Rules-based personalization: collaborative filtering is one way of personalizing a market offering to each customer, when formal rules can be identifies in the way customer behave, it is done. 4) customize market offerings * Customization technique: is user-driven instead of marketer-driven, allowing users to specify the nature of what is offered to them. * Personalization and customization can be help build customer loyalty and make it less likely that customers may switch to other suppliers. 5) Disintermediation and restructuring of distribution channels * The internet makes the distribution channels possible for marketers to reach customers directly, without expenses or complication of distribution channels (disintermediation). * Those who consider disintermediation their channels and selling direct must determine how they will perform these functions and must evaluate whether doing so is more effective and efficient than using intermediaries. * Web-based disintermediation has grown to fill new needs. E.g. eBay→ creates new type of intermediary, the consignment seller. * Other new intermediaries: aggregators and affiliate schemes. E.g. Kayak.com, a travel aggregator (seems like æ  ºÃ§ ¨â€¹Ã§ ½â€˜Ã¯ ¼Å'assist customers in finding the best deal among hundreds of sites.) The aggregator sites can  focus on improving the technologies that allow customers to find exactly what they want, and publishers can specialize in promotion and attracting customers, since they are not involved in managing the product that the customer is actually buying. 6) Global reach, round-the-clock access * Global reach, making them available 24 hours per day, providing instantaneous delivery. E.g. EasyJet airline, sells low price tickets of flight, allowing customers from different continent confirm the deal instantly at any time. With mobile telephony and GPS technologies develop, such deals can be done via mobiles. 7) The threats of new-economy and defenses * Raise complex ethical issues and present potentially significant threats * For most products, price usually is not far from variable cost in the long run, syndication implies that the variable of delivery of informational goods approach zero, then what about the price, how do the producers make money? * There are few barriers to entry and many internet strategies are easily imitated. * Privacy and security issues. * Two best defenses against these advantages: one is through the patent and copyright system. The other one is through versioning. Shapiro and Varian argue that even for information products whose variable costs are zero, the value of information to different kinds of customers is likely to vary substantially. * Versioning dimensions: time, convenience, comprehensiveness, manipulation, community and support * Skills in market segmentation and targeting, differentiation and positioning are needed to enable marketers to best take advantages of new-economy technologies and mitigate their disadvantages. * Developing a new-economy strategy: a decision framework * Steps for building marketing strategies for new-economy * Assess the nature of environment * Audit environmental influences (using PEST) * Identify competitive position (strengths and weaknesses via a vis competitors and customers) * Identify key opportunities and threats * Strategic position * Marketing segmentation, targeting and positioning * Identify bases for segmenting the market * Develop profiles of resulting segments * Develop measures of segment attractiveness * Select target markets * Developing positioning for each target segment * Develop marketing mix for each target segment * Marketing applications for new-economy tools * A six-stage consumer experience process: a) Consumer insights: consumer provides information about their need to sellers, which permits producers to develop goods and services intended to meet the customers’ needs. b) Promotion and brand building: information about the new product flows to customers to inform and encourage them to buy c) Transaction: requires that information about pricing, terms, delivery flows both ways. d) Product delivery e) Customer support or service: in which case additional information may flow in either direction or additional goods and services may flow to the customers. f) Return, dispose: the customer may need to return or discontinue use of the good and service. * Impact of e-marketing on marketing strategy * Power shift in supply chain (producers and retailers→ consumers) * More comparative information available to consumers. E.g. Amazon.com → leads to higher purchasing power * Increase nature and scope of competition in many industries * Impact of e-marketing on offerings * Atom based: Still a physical product that needs to be shipped. * Bit based: Digital data or information in electronic form. E.g. MP3 Implications: Online customer has greater information, wider search, online recommendations and price comparisons; competitive strategy must seek to avoid price competition and use web to augment the offering * Developing strategies to serve new-economy markets * What might tomorrow’s entrepreneurs do to craft marketing strategies to  serve new-economy markets? a) Would-be internet entrepreneurs should consider the various ways in which revenue can be generated on the web or in other new-economy settings. Understanding one’s revenue model and being willing to change it as market and technological conditions warrant are essential. b) Entrepreneurs must ask not what can I sell but what do new-economy customers and markets need, and how and where do new-economy consumers want to consume what I have to offer. c) Would-be entrepreneurs must realize that barriers to entry are incredibly low in the new economy. Conclusion: execution is key and understanding customers and the markets they make up, understanding industries and the competitors that daily do battle in them, and developing marketing programs that can establish and maintain sustainable competitive advantage.