Vodafone and 02 to share networks

This is an unusual type of collaboration. It is hard to share infrastructure and at the same time compete. I have a suspicion that this is the first stage of an integration or even a merge (?)...

Vodafone and 02 to share networks

Mobile phone firms Vodafone and 02 parent Telefonica are to pool their network infrastructures in the UK and three other European countries.
The move will save both firms many millions of pounds in operating costs, and Telefonica admitted "the current economic situation was a catalyst".

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7959133.stm

Profits up at luxury group Hermes

This is a good example, of how developing international strategies spreads the risk of unexpected events (economic crisis). It is even more interesting because this is another luxury brand that reports profit.

Profits up at luxury group Hermes

French luxury goods firm Hermes has said profits rose in 2008, shrugging off concerns about the impact of the global economic downturn.
Shares gained 3.1% in Paris as its profit of 290m euros ($395m; £273m) was higher than analysts had forecast and the company increased its dividend.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7952666.stm

Concern over 'e-cigarette' sales

Substitute product?

Concern over 'e-cigarette' sales

Ministers are being urged to restrict the sale of 'electronic' cigarettes amid fears they could be harmful.
Retailers say they are a healthy alternative to real cigarettes because their users can inhale nicotine without tar, tobacco or carbon monoxide.

Read the whole article at: http://news.bbc.co.uk/1/hi/uk/7941021.stm

Drug firms in $41bn giant merger

The pharmaceutical industry is one of the best examples on how market forces lead to consolidation and M&As.


Merck is to buy rival Schering-Plough in a $41.1bn (£29.4bn) deal, creating one of the world's biggest drug companies. The merger unites the makers of cholesterol drugs Zetia and Vytorin at a time of falling sales.

Read the whole the whole article at: http://news.bbc.co.uk/1/hi/business/7932264.stm

Facebook to let users give input on policies

Interesting to note the power of customers who at the same time they are suppliers. Facebook like many other networking sites has been developed by its customers who create applications etc.

Facebook to let users give input on policies

By BARBARA ORTUTAY – 1 hour ago
NEW YORK (AP) — Facebook is trying its hand at democracy. The fast-growing online hangout, whose more than 175 million worldwide users could form the world's sixth-largest country behind Brazil, said Thursday that those users will play a "meaningful role" in deciding the site's policies and voting on changes.
Facebook is trying to recover from last week's policy-change blunder, which prompted tens of thousands to join online protests. At issue was who controls the information, like photos, posts and messages, that people share with their friends on the site.

Read the whole article at: http://www.google.com/hostednews/ap/article/ALeqM5hVVOyYn6NLet4lG2QMp55op-x3jQD96JTD3O3

March launch for 'cheapest car'

Could this be the answer to the problems of the automotive industry? The low frills strategy has restructured the airlines industry; could a similar approach do the same for the automotive? It would be interesting to examine whether Tata could launch this product in more mature industries like Europe or US.

March launch for 'cheapest car'
India's Tata Motors has said its Nano, billed to be the cheapest car in the world, will be launched next month.
The company said the launch would take place on 23 March in Mumbai. It will start taking orders in mid-April.
The basic model is expected to cost about 100,000 rupees ($1,984, £1,393). The car was due to have been launched last year.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7911749.stm

Soros sees no bottom for world financial "collapse"

Soros sees no bottom for world financial "collapse"
Sat Feb 21, 2009 1:22am GMT
NEW YORK (Reuters) - Renowned investor George Soros said on Friday the world financial system has effectively disintegrated, adding that there is yet no prospect of a near-term resolution to the crisis.
Soros said the turbulence is actually more severe than during the Great Depression, comparing the current situation to the demise of the Soviet Union.

Read the whole article at: http://uk.reuters.com/article/businessNews/idUKTRE51K0AV20090221

Mobile phones take to the skies

Does this make sense? A low-frills, cost leader company to differentiate in such as a great scale that even the likes of BA do not... Interesting to note how the company uses customer feedback (you can read and compare with this commentary on the US automotive industry http://www.businessweek.com/magazine/content/09_06/b4118032619547.htm?chan=innovation_auto+design_top+stories)

By Colette Hume BBC News

Picture the scene - you're on the plane on your way to a dream holiday destination. Take-off was smooth and the drinks trolley is on its way down the aisle.
The mood is complete - then a mobile phone rings.
For some that sound spells heaven, for others hell, but from now on it's a reality for thousands of Ryanair passengers

Read the whole article at: http://news.bbc.co.uk/1/hi/uk/7900802.stm

Microsoft to launch retail chain

It is quite interesting to note how vertical integration is expected to great greater synergies across the different SBUs for MicroSoft.

Microsoft to launch retail chain

Computer software giant Microsoft has announced plans to open its own stores, at a time when many other retailers are struggling in the economic downturn.
The company plans to sell computers installed with Microsoft software and other products, Microsoft chief operating officer Kevin Turner said.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7889099.stm

India Planning $10 Laptop

It is interesting how the local needs of emergement markets can influence the entire industry.

India Planning $10 Laptop
By Charlie Sorrel February 03, 2009 8:41:07

You thought the $100 laptop was cheap? How about a $10 laptop? That's the promise of the unfortunately named Sakshat computer (it actually means "before your eyes"), to be built in India as soon as the designers get a manufacturer signed up.
Details are scarce, but at least the people behind it have pedigree. The Indian government is funding it, and the design is from scientists at science and technology institutes in Vellore, Madras and Bangalore. The price of making this machine is now around $20, but should fall to half that as production runs get longer.

Read the whole article at: http://blog.wired.com/gadgets/2009/02/indian-planning.html

Fast bucks: how Porsche made billions

It is fascinating to read how a company can prosper within a financial crisis period. Porsche is definitely an interesting case study and at the same time it provides good examples on the appointment of a leader, without any relevance and capabilities in the sector (think our 'leadership expertise'), has created unexpected sources of income.


Fast bucks: how Porsche made billions
By Emily Hughes BBC Money Programme

Porsche is world famous for its iconic sports cars.
But car manufacturing isn't the only thing the company is good at.
Last year it made six times as much on the stock market as it did making cars.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7843262.stm

Fiat and Chrysler create alliance

Example of strategic alliance. It is interesting to note how the two companies seek to get different types of benefits from this collaboration: access to knowledge (efficient engines) and access to the largest market.

Fiat and Chrysler create alliance

Italian carmaker Fiat and US giant Chrysler have agreed to create a global strategic alliance, the companies said in a statement.
Under the terms of the deal, Fiat will get a 35% stake in Chrysler. In return, the US firm will get access to Fiat's fuel-efficient vehicle technologies.
It is hoped the agreement will lead to "substantial" savings for Chrysler.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7839542.stm

Waitrose to add 4,000 positions

'Supermarkets are one of the few sectors creating rather than shedding jobs'. It is interesting to note how the sector of supermarkets deals with economic crisis through expansion and economies of scale.

Waitrose to add 4,000 positions

Supermarket chain Waitrose says it will add 4,000 new jobs as it embarks on an expansion drive.
The chain has entered an agreement with The Co-operative Group to buy 13 stores and Waitrose said it would open a further nine new branches.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7833065.stm

Citigroup to split as losses grow

That's an interesting 'portfolio approach' management example, for two SBUs which in theory had could develop synergies.


Citigroup to split as losses grow

Citigroup was bailed out by the US government in November
Struggling US banking giant Citigroup has announced plans to split the firm in two, as it reported a quarterly loss of $8.29bn (£5.6bn).
It said it would realign into two new firms, Citicorp and Citi Holdings.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7833090.stm

Aldi moves into holiday market

One could think that this is an unrelated diversification: holiday packages by a supermarket chain. But this is not the first retailer to have such a SBU (Co-op has been offering similar services with a different business platform though). It is interesting to note how retailers can develop synergies across completely different SBSs.

Aldi moves into holiday market

Cut-price supermarket Aldi has begun to offer beach holidays and city breaks to cash-strapped consumers.
The move comes as the travel industry enters its busiest period of the year, with 20% of summer holidays usually booked before the end of the month

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7820008.stm

JD Sports and Jessops sales rise

Good strategies?

JD Sports and Jessops sales rise

JD Sports and the camera chain Jessops have bucked the trend on the High Street, reporting that sales during the Christmas period were up on last year.
JD Sports said that in the five weeks to 3 January sales in stores open more than a year were up 2.8%.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7819452.stm

Why did Zavvi go under?

A very good example of the suppliers' role in survival. It would be interesting to read what the Zavvi executives did, since they started sensing that Woolworths were about to go on administration. Think of how their Value Chain Analysis and Five Forces Analysis would look like a few months ago.

By the way, one can only admire R. Branson's foresight...

Why did Zavvi go under?
By Martin Shankleman Employment correspondent, BBC News

Zavvi has joined a growing list of High Street casualties in the run-up to Christmas.
These include the closures of MFI and Woolworths, which were confirmed last week, while Whittards and The Officers Club went bust yesterday.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7799204.stm

The trouble with Starbucks

Very Interesting. Lots of stuff to consider: unsustainable growth, expansion strategies, international strategies.


The trouble with Starbucks
By Jenny Wiggins. Portrait by Charlie Bibby
Published: December 12 2008 11:43 Last updated: December 12 2008 11:43

On a dark December morning three years ago, Howard Schultz bounded into a coffee shop in Dublin and started shaking hands with people in red T-shirts and green aprons before peppering them with questions. “Are you all new with Starbucks?” he asked the staff. “Who are the customers, and have they been to Starbucks before?”

Read the whole article at: http://www.ft.com/cms/s/0/aa9831ce-c266-11dd-a350-000077b07658.html?nclick_check=1

Virgin unveils next-gen broadband

Example of product development. The broadband market has reached its maturity with no new customers available; and hence Virgin has developed a product development strategy (think of Ansoff's matrix). Reading the article, it is interesting to note how the competition is based on different technologies (impact of macro environment) which have a completely different approach (modem etc). I guess pricing and reliability will determine the winners as switching costs remain low.

Virgin unveils next-gen broadband

Virgin Media has launched its new 50 Megabits per second (Mbps) domestic broadband service.
It doing so it will be the first UK ISP to roll out a next generation broadband service that runs far faster than most others available to UK web users.

Read the whole article at: http://news.bbc.co.uk/1/hi/technology/7776139.stm

Owner of Five 'eyes bid for C4'

Note how the environmental factors 'from a funding gap as advertising revenue falls' influence network level strategies. Good example of vertical integration.

Owner of Five 'eyes bid for C4'

RTL, the German firm which owns channel Five, is contemplating a takeover bid for Channel 4, a report suggests.
It has asked investment bank JP MorganChase to examine the prospect of the move, The Sunday Times reports.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7782645.stm