Europe mobile-telecoms market

The world is getting smaller for the phone. France Telecome begun to discussion about a long-anticipated takeover offer for the Swedish firm. They trade it for $42 billion. This is unusual deal comparing America’s largest mobile company named Verizon Wireless which normally deal with $27 billion. The growth of mobile phone market is poor. In many countries there are more mobile phones than people. Therefore, bulking up is a good idea to expand the market and for achieving an economies of scale.

In Europe mobile-telecoms markets are taking more consolidation. France Telecome cannot yet create Europe’s biggest mobile-phone company which will be dealing with 237million customers in 30 countries. They try to entice the customers with its more mature mobile and fixed-line operations in the Nordic region where the businesses in Eastern Europe and Central Asia come faster growing now.

And also there are plenty of other possible targets to tie-ups such as smaller firms in Belgium, the Netherlands, Portugal, Switzerland. Vodafone may bid to extend its stake in Vodacom, a South African operator.

Mobile market is limited like an energy market. I think that mobile or other wireless communication systems finally will be used in common share. If the hardware system is to be a public assets, companies should compete in the software market. Still governments in each countries prevent their own countries mobile market from hunting by other countries. However, I think that the bulking up with mobile companies is only a matter of time.

http://www.economics.com/
20600171 13th entry

Apple won't be exclusive?

"create our own version," - Apple's new story in Japan.

Softbank, the No. 3 mobile operator, will sell the coveted cell phone in Japan.

Softbank's June 4 announcement that it has signed up to sell Apple's (APPL) popular iPhone in Japan might seem like a major coup for the country's third-largest mobile operator. A new and improved iPhone, which Apple is widely expected to unveil at the Worldwide Developers' Conference (WWDC) in San Francisco next week , could help Softbank narrow the gap with the two largest wireless carriers, NTT DoCoMo (DCM) and KDDI. The buzz alone should boost Softbank's brand image with consumers and its standing with software developers and Internet content creators.

　

But the company's one-line statement that it plans to "bring the iPhone to Japan later this year" was revealing in its brevity. One issue that Softbank avoided mentioning was whether the deal with Apple is exclusive. That's unlikely to happen, industry executives say, because Apple has moved away from the type of exclusive deals with operators that it favored when the iPhone debuted last year. Earlier this month, Apple granted both Vodafone Group (VOD) and Telecom Italia (TI.A) the right to sell the iPhone in Italy.

　

Apple also won't want to limit itself to Softbank's 18.8 million subscribers. In recent months, Apple execs have held several meetings with officials from both Softbank and DoCoMo at Apple headquarters in Cupertino, Calif., according to industry executives. Apple's best shot at gaining a toehold in one of the most sophisticated mobile markets on the planet is to appeal to as many of Japan's 108 million mobile subscribers as possible. Success would help its chances in other markets. Another incentive: Japan accounts for nearly a quarter of the $105 billion in global cell-phone sales annually, according to Tokyo research firm Eurotechnology Japan.

　

Why greenlight Softbank first? Some telecom execs suspect Apple is trying to gain the upper hand in talks with DoCoMo. "DoCoMo is proud and it might say, 'we don't want the iPhone,'" says one telecom executive who spoke on condition of anonymity. "But it risks losing market share and a product that Softbank could use against DoCoMo." A DoCoMo spokesman would only say that further talks with Apple were possible.

　

DoCoMo might not cave to the pressure. Japan's dominant carrier is used to calling the shots when dealing with handset manufacturers. Apple's demands for 30% of airtime revenues from every iPhone user and permission to activate new subscribers through its iTunes online store could be a deal-breaker. And DoCoMo knows that if it gives in to Apple it will have a dozen or more other tech companies whose handsets connect to its network asking for similar concessions.

　
All the hype won't do much for Apple unless its new iPhone stands out from other feature-packed handsets in Japan. A touch screen, user-friendly software, and Internet connectivity are hardly novel. These days handsets in Japan double as credit cards and commuter passes, sport high-end cameras and bar code readers, boast Internet browsers over high-speed connections, record TV broadcasts, and do e-mail, and many come with customized Web-based services.

　

20700110
13th entry
author : Kenji Hall
title : Apple's Japan iPhone Strategy
date : June 5, 2008

reference : http://www.businessweek.com/globalbiz/content/jun2008/gb2008065_996799.htm?chan=rss_topStories_ssi_5

POSCO Burnishes ‘Steel’ Image

          POSCO in Pohang, Korea is now becoming the central place for the local community from its old company image as the "steel central" of Korea. Having a showroom, a classical concert, or sometimes a rock concert, POSCO is now able to approach to people with softer image. Since they started the monthly classic concert for local community, average of 2,000 audiences come to this free concert and enjoys the every moment.

          The spokesman of POSCO states that "...``We try to soften up people's perception that the steel industry is stiff business through various initiatives" (BusinessWeek). So when people visit POSCO for such events, they could also take a tour around POSCO, from the museum and a showroom with comtemporary arts on the ground level of the southern Seoul high-rise tower.

          POSCO not only sponsors these classical concerts around their area, but also to have such great sympony concerts at universities nationwide. Because of POSCO's great effort to have a close relationship with the public, the firm states they have established ties with almost 70 percent of Pohang's population.

          I think POSCO is trying to place its brand image among the people in order to diminish the public's perception for the steel group as bold and strict image. First, I thought why POSCO would put so much efforts to have that kind of keen relationship with local community; however, as I have spent more time in Pohang, I realized having such factories around the city could make a bad impression for the whole community. However, since POSCO has created ties between both parties, local communities can now have more smoother perception towards the firm. I think this strategy would allow POSCO to have great advantages for moving forward its business aruond Pohang in the future.

Reference;
Han, Jane. "POSCO Burnishes ‘Steel’ Image" KoreaTimes. 2008/06/05.
http://www.koreatimes.co.kr/www/news/biz/2008/06/123_25362.html

20601008 - 13th Entry

Wal-Mart's expansion to the medical area

I read an article about Wal-Mart's expansion to the medical area. Originally, Wal- Mart is popular in glocery area. But now Wal-Mart decided to challenge in medical area. When they started the business, many critics said that they will fail in the business because medical area is something like professional area. But now the drug and health business is about 9% of the all Wal-Mart's revenue. Wal-Mart always considers changes. The management is so amazing and creative. Even if they are a leading company in the world, they always innovate themselves.
Then How they developed the medical area? They catched the baby- boomer generation. A few years later, they will be almost 50 years old. At that age, people always think that they have to manage their health. But the generation is too many and the market couldn't supply enough amount of drugs and health foods. Wal-Mart knew the problem, and they started to supply many medical stuffs at low prices. The price is almost half of the generic drug stores. For the low price supply, they always find many channels. Accordingly, their strategy is low-cost, and it also benefits to the dividends. Now Wal-Mart's stock price is almost $60.
The health market is always confused because of prescriptions. When people want drugs, there are some drugs that cannot buy or sell if the buyer don't have prescription. Wal-Mart solved the problem. They supply good quality drugs that can buy without prescriptions. And the drugs are very effective to human body. They also supply drugs that are so cheap that even low income consumers can buy. In America, the costs of medical insurance are very high. Therefore, many Americans don't have the insurances. Wal-Mart catched the point and supply cheap drugs that can be available without medical insurance. Through these strategies, Wal-Mart could achieve humongous profit.
Then how is their employee management? The management of Wal-Mart provide good service to their employees. Employees can benefit from insurances and also can enjoy the openness of Wal-Mart. Actually, Wal-Mart don't demand employees to work hard everyday. Instead, they try to motivate employees to work creatively. In other words, Wal-Mart's employees are not simple workers. They are co-managers. They can suggest their idea to the management and sometimes their idea can be achieved. I think these cultures are one of the most good point of Wal-Mart.
In Korea, there are few companies like Wal-Mart. In fact, Wal-Mart completely failed in Korea. I think Korean has special character when they buy something. Korean focuses on the quality and brand. Actually, Wal-Mart thought that cheap products can penetrate korean market. But they ignored korea's specialty. They buy satisfaction that can be achieved by good service and sometimes high price. Accordingly, Wal-Mart's case cannot adapt to the Korea. But I think we can learn many important points from Wal-Mart. Their customer management or company cuture is the example. Also, we have to learn Wal-Mart to expand ourselves to the world. Because Wal-Mart rules the world's retailing market except Korea. Now it's the time to challenge. I think Korean retailing companies can be world class companies.

Author: Pallavi Gogoi
Title: Wal-Mart, Your Friendly Drugstore
Date: June 5, 2008, 12:10AM EST
Page: 2

reference: http://www.businessweek.com/bwdaily/dnflash/content/jun2008/db2008064_545169.htm
entry # 13 20700067