Week 3 - One in every color, as long as its black

Week of February 5th, 2009


Mass Customization

Companies such as Dell and Lands End have enacted a differentiated value proposition using "mass customization." This essentially is an ability to efficientl produce customized products. It is only possible through such innovative measures as just-in-time inventory and complicated websites. Many consumers have come to appreciate similar efforts from other companies to allow for personalization. Next on the list of demands, according to Network World, is the operating systems for computer networks. Every company requires different functionality for their systems. Many have invested billions into IT personnel and the latest tech gadgets to achieve this level of customized functionality. Many Linux users are leaning toward a JeOS or just enough operating system. It's is limited to the ability to run a few key applications. Because it's Linux, you still get the tech support and hardware that you need.

http://www.networkworld.com/news/tech/2009/012109-tech-update.html?page=1


Market Segmentation

Car manufacturers are attempting to gain marketshare in the BRIC emerging economies. These segments consist of Brazil, Russia, India and China. In the Economist, China's methods on breaking into the industry are discussed. Customs taxes were too high to make the foriegn automobiles appealing to locals. China only allowed foreign car manufacturers into their country through joint venutres with Chinese manufacturers. The first was Volkswagen, who created the Santana (much like the Passat, but fully Chinese made). Then came GM pushing brands such as Buick, which sold twice as well in China than it did in America. When the auto market is divided by geographic segments, the American segment seems to be over saturated with choices. It is very appealing for manufacturers to get into the developing countries to establish their brands early. Automakers in Brazil have free reign, no such joint venture requirements exist there. The Russian market is held back by high oil prices. And India is dominated by the early bird Suzuki, who formed a joint venture with Maruti in the 1980's. The market for automobiles has grown considerably since Ford created the assembly line in Michigan. Now cars are designed, not only with optional colors, but with optional assemblers as well.

http://www.economist.com/specialreports/displaystory.cfm?story_id=12544905


Market Positioning

If you can't beat 'em, join 'em. This is Pfizer's thinking in attempting to buy out competitor Wyeth. Wyeth's most profitable drug is Lipitor, but the patent will run out soon. With no new medicinal innovations in its cauffers, they will be very vulnerable in the current economic conditions. Pfizer is the number one drug company in the world. Between purchasing their number two competitor and the aging baby boomer generation, their position as such will certainly continue indefinitely. However, as more drug makers consolidate, what will that mean for the cost of medicine?

http://www.economist.com/business/displaystory.cfm?story_id=13007939