Lord of the flies Essay Example | Topics and Well Written Essays - 1250 words - 2

Lord of the flies - Essay Example The novel, with its structure, symbols, motifs and allegories, serves the purpose of showing the innate evil of man. In his lecture of 1962 given at the University of California at Los Angeles Golding explained that the breakdown of civilization in his novel resulted from nothing but the inborn evil of man: â€Å"So the boys try to construct a civilization on the island; but it breaks down in blood and terror because the boys are suffering from the terrible disease of being human† (In Burris 1999). Golding does not justify this evil by the structure of the society, but quite the contrary, explains the defects of the society by the traits of the humanity. The writer stated that the shape of the society created by the boys on the island is â€Å"conditioned by their diseased, their fallen nature†. Intentionally, he avoided any elements that could make us think that it was the society rather than the human nature responsible for the breakdown: â€Å"The boys were below the age of overt sex, for I did not want to complicate the issue with that relative triviality. They did not have to f ight for survival, for I did not want a Marxist exegesis. If disaster came, it was not to come through the exploitation of one class by another. It was to rise, simply and solely out of the nature of the brute† (Golding, In Burris 1999). Though it is possible to suggest that in circumstances different the events would develop differently, the author insisted that the tragedy occurred â€Å"simply and solely out of the nature of the brute† (in Burris 1999). As the result of his views, Golding builds his novel around the central conflict between two opposite impulses existing within human beings: the tendency to live according to rules and moral commands, in peace and for the good of the group against the desire to satisfy one’s immediate desires and impulses, act aggressively to achieve supremacy over other people, and impose one’s will. For Golding

Developing Supply Chain to Deliver WOW Essay Example for Free

Developing Supply Chain to Deliver WOW Essay Zappos.com is a privately held online retailer with an extensive product category mainly including apparel, footwear, handbags, and watches. Headquartered in Nevada, it primarily operates in the US with about 1,300 employees and revenues mounting to $635M in 2008. Thanks to its strength in offering an outstanding customer shopping experience and strong corporate cultures and values related to customer service, it was the largest online shoe retailer in 2008, with a positive growth outlook. However, in the face of possible economic downturn, its underlying insufficiencies in supply chain management and operations may pose a threat to the company’s long term profitability. Nevertheless, the opportunity of possible international expansion may well be exploited to improve sales and expand the business, but such decision still needs critical evaluation and feasibility assessment in whether Zappos can sustain its focus on outstanding customer service levels in such scenario. The online-retail industry in which Zappos operates is one in which the rivalry among existing competitors is high, as it is competing with both click-n-brick stores like Amazon, as well as traditional retail stores such as Footwear Inc which also have a strong focus on the shoe segment. However, the threat of new entrants is very low as a result of the high initial capitalization required for the start of business. There are a large number of buyers in the market. However, high price sensitivity and low switching cost strengthen the buyer`s position; continuing to attract such customers becomes one of the main challenges for Zappos during a likely scenario of economic downturn. Zappos will need to adopt strategies such as importing directly from foreign suppliers, committing to 5 day delivery through ground shipping as opposed to next-day air shipping, offering its own private label, and expanding its Powered by Zappos initiative. Company Value Chain: Problem Analysis External Analysis Porter’s 5 Forces The following is an evaluation of the external forces acting upon Zappos’ operations and their possible impact in the immediate and future performance of the company: Degree of Rivalry HIGH: While Zappos is a pioneer player in the online retail segment, in practice it is not only competing with other online retailers, but with brick-and-mortar stores in the traditional retail sector which have substantial experience in the market. Many other players offer similar products to those carried by Zappos’. Bargaining Power of Buyers MODERATE to HIGH: Given the many alternatives in the market, the switching cost for a customer to other retailers is very low. Consumers are becoming increasingly price-conscious, and with the small potential for differentiation in the non-fashion elite segment, the customer can easily find other similar product options, forcing retailers to offer lower pricing to remain competitive. Threat of New Entrants MODERATE TO LOW: The barriers to entry in the industry are extremely high, based on the large capital investment required. However the online retail business is still on its growth stages, which may attract new players and investors looking to capture potential markets. Bargaining Power of Suppliers LOW: Competition for both wholesaler / importer suppliers and direct manufacturers is intense and well established; therefore, the market itself drives the power of the many suppliers down. As discussed, there are many alternatives in the market such that no single supplier is dominant. Threat of Substitutes LOW: There are no substitute products available for most of the products which Zappos may offer to the public, so such threat is unlikely. SWOT Analysis Strengths Customer-Oriented Culture and Services Zappos has strong company culture and values, which have a large influence on all aspects of the business, including the supply chain. Zappos is always looking for new ways to WOW every customer and always treat every employee like family. The employees consider Zappos a fun place to work. In addition, Zappos` commitment to customer service satisfaction is clearly demonstrated by their value propositions and represents their core differentiation strategy. These are free shipping, guaranteed 5 day delivery (WOWing the customer, where 49% of customers will receive their product within 2 days), a 365 day return policy and 24/7 customer service. Unique Products and Innovation The core products that Zappos offers are designed to be distinctly different from the traditional shoes available in brick-and mortar stores. Zappos provides customizable product models and extensive product information to customers. For example, Zappos` site has a detailed d iscussion of gait that helps customers to determine which type of shoe is appropriate for them. Weaknesses Presence Limited to Online Market Although there are many online shoppers today and the number is still growing, Zappos is unable to reach the majority of retail shoppers by only having the online outlet channel. Relatively Low Profit Margin The revenue of Zappos in 2008 is $635 million, but the company policy on product returns makes up 35% of gross sales. This is definitely crippling Zappos profits. High Dependency on UPS Until 2008, Zappos has only one call center in Las Vegas and one distribution center in Shepherdsville, Kentucky. The distribution center is less than 30 minutes from the UPS hub in Louisville. This will make Zappos delivery highly dependent on UPS. Opportunities Rapid Growth of Online Shopping – Online purchasing has grown consistently year after year; the opportunity lies in capturing new online customers and retaining them. Technology Innovation In 2008, Zappos added more automation to its warehouse operations by installing a robotic system in which robots picked up shelves that contained the items to be picked, and brought the shelves to the workers. These new robots allow Zappos to ship a pair of shoes in as little as eight minutes. Technology advances will allow Zappos to increase the capacity and efficiency of its distribution centers, without having to build new centers. Build Strategic Alliances with Complementary Retailers Zappos could build synergies with similar-size online retailers which offer complementary products in an effort to broaden its customer base and target audience. Threats Economic Downturn Customers will become more price-conscious in difficult economic times, which will ultimately drive Zappos strategy in order to remain competitive in such scenario. Competitive Rivalry While Zappos is one of the pioneer players specialized in shoe-retailing, the trend is for established brick-and-mortar companies to start offering their products online, which may generate additional competitive pressures. Possible Security Breach for Online Retailer Zappos must address possible security breaches to its servers. Problem Statement Based upon the previous analysis, Zappos faces two major problems which may be detrimental to the company’s long-term success. Our aim here is to synthesize them in order to formulate a series of recommendations that the company could implement to solve the mentioned problems. Problem 1: Supply Chain Management The first problem that the company faces within its organization is related to supply chain management. We have identified three different sub-issues within this topic in which Zappos has room for improvement: Imports from wholesalers as an intermediary between Zappos and the manufacturers Due to the highly uncertain demand in the sector, having a wholesaler between Zappos and the brands that manufactures the product is a strategic problem for the company. When Zappos places an order, it is relying on the inventory that the wholesaler keeps in order to fulfill its need of supply. Furthermore, Zappos may find it difficult to secure its supply as the company grows, having no control over wholesaler import decisions. This is especially critical in a sector with unstable demand faced with global economic uncertainty. Zappos must devise supply chain-related strategies which provide the company with more flexibility in terms of profit margins in order to deal with more price-conscious customers in the future. Delivery to Zappos’ distribution centers from suppliers The company faces a problem in relation to inefficiency of partially loaded trucks arriving to unload to Zappos’ inventory facilities. As the case highlights, significant numbers of partially loaded trucks (LTL) arrive to unload products generating unnecessary traffic in the distribution center, subsequently slowing down the unloading process. There’s a need for Zappos to address this issue, ultimately affecting its whole operation’s efficiency. Inventory Management At this point, the company uses manual scanners to register incoming and outgoing stock from its distribution center. This may lead to inventory inaccuracies due to the high probability of human error to occur in the handling of the incoming and outgoing merchandise. It is of the utmost importance for Zappos to have accurate inventory information, not only in terms of its supply chain management, but also in maintaining customer service levels because of the potential of having inaccurate information on the website such that a customer may order a product which is actually out of stock. Problem 2: Growing the business Throughout the case it is been said that the company plans to expand. It is possible to grow the business in a national scale as well as internationally. The following issues need to be addressed by Zappos when evaluating company expansion: determining strategic locations for new facilities to store its inventory and achieve a good balance between supplier lead times and delivery times to the final customer. In addition, the company faces the decision of whether to continue having its distribution centralized in Kentucky. Moreover, Zappos needs to evaluate whether or not it is still feasible to use UPS ground shipping in the long-term. The company would also face a problem not only when trying to maintain its customer service levels and an efficient delivery, but also when trying to get new employees to share its corporate culture. Recommendations: Start Importing Directly from Foreign Manufacturers: Zappos should begin developing direct relationships with foreign manufacturers, especially with Chinese suppliers, starting by importing some products directly, instead of buying from North American wholesalers. This strategy has the following benefits: * Cost savings from purchasing the same products at lower prices, providing the company with more pricing flexibility at dealing with cost-conscious consumers in a difficult economy. * Distribution channel efficiency is increased by eliminating middlemen in the supply chain. In this sense, there is no need for products to be shipped from foreign suppliers to a wholesale distributor and from there to Zappos; Zappos can receive the product directly at their distribution center, reducing freight costs across the value chain as well as lead times. * A closer relationship with manufacturers might enable Zappos to obtain information regarding inventory levels, product availability, and or der status and timing. It is worth noting that even in cases where Zappos is still purchasing from a wholesaler (who in-turn imports from the manufacturer), the wholesaler can request the manufacturer to deliver directly to the Zappos distribution center, earning the lead time and cost benefits. Opt for Ground Shipping as Opposed to Next Day Air Shipping: Given the risk of failing to meet the next day delivery standards because of external factors, Zappos should only guarantee 5-day delivery. In this manner, the company will consistently overdeliver, with 99% of customers receiving their orders within 4 days. This strategy not only makes sense from a cost perspective, but it also goes hand-in-hand with Zappos’ culture of outstanding customer service. However, the option of next day air delivery should be made available to the customer for a premium rate. Sign a Contract with a Selected Trucking Company Specialized in Consolidation: In order to minimize LTL shipments to its distribution centers and mitigate the economic inefficiencies that LTL implies, Zappos should sign a contract with a major transportation and logistics company specialized in consolidation in order to handle Zappos order pick-ups from some of its remaining local suppliers, optimizing cargo capacity and delivering such products to the distribution center. This contract strategy would only be possible to implement in areas with high supplier concentration such as Southern California and Ontario. It is granted that such a strategy would require a long and difficult negotiation process between suppliers, the logistics company and Zappos; however, economies of scale benefits could be obtained from the large volumes to be handled and the cost savings distributed across the industry value chain. Search for Additional Partners and Expand â€Å"Powered by Zappos†: Powered by Zappos partners act as distributors of the products carried by Zappos. In this sense, finding new partners will generate additional revenues from both the fees of developing and running distributor websites and operations and from an expanded market base deriving from multiple websites offering Zappos products. Offer its own Zappos Private Label: Zappos could expand the business by offering its own private label; private labels offer the advantage of not purchasing from a third-party wholesaler which in itself is making a profit from the merchandise, allowing for more flexibility in terms of pricing and profit margins. Overall, by commercializing its own brand, Zappos can offer its private label merchandise at lower prices than the industry standards, while maintaining its profit margin. This strategy would be effective at dealing with price elastic customers in uncertain economic times. It must be noted that to achieve this, however, the company would need to develop internal design capabilities and source its private label through selected manufactures which meet their needs. In order to achieve the lowest supplier prices, supplier relationships would need to be developed through established contracts which may include exclusivity agreements. Based on the large volumes that Zappos handles through its established customer base, the strategy could also earn benefits from economies of scale and increased brand awareness. Do not Expand Internationally in the Short-Term: The huge capital investment required and the risk of affecting customer service levels makes international expansion undesirable in the short run. The company’s financial base must be strengthened further before pursuing such expansion, maintaining the focus on customer service that the company has been known for. Customer service is core to company values and culture and therefore cannot be compromised by any strategic decision. International expansion must be accompanied by the same training standards, staffing levels and passion for customer service at company call centers and order delivery must meet Zappos promise. This last factor could pose a special challenge, given that Zappos would be relying on couriers operating in different countries which may introduce a factor of uncertainty beyond Zappos control as to what levels of delivery performance can be met. Invest in an Automatic Scanning System for Inventory Control: In an environment where such accurate inventory information is required, the current manual scanning of goods entering and leaving the distribution center is inadequate. Errors in inventory control will inevitably have a negative effect on customer satisfaction in that the system may allow a customer to purchase a product that is in fact out of stock. A system which automatically scans incoming and exiting products (magnetic doorways or similar) guarantees inventory accuracy and goes hand-in hand with the core values of the company, making it a worthwhile and even necessary investment. Limitations * The capacity of the existing distribution center in Kentucky is unknown; therefore we are assuming that the current infrastructure will be enough to sustain the operations of the company to meet an increasing demand and market share in the short-term. * Suppliers which have their own fleet might be reluctant to agree to let Zappos do order pick-ups and deliver their products; however, our recommendation assumes that the suppliers are flexible in this sense. * A break-up of the company`s operational costs would be required in order to make better-informed strategy recommendations. The performed analysis is based on purely qualitative information. [ 1 ]. MGSC 602 Strategic Management of Operations Coursepack, Zappos.com: Developing a supply chain to deliver WOW, Stanford Graduate School of Business, Case GS-65, 02/13/09, page 276 [ 2 ]. MGSC 602 Strategic Management of Operations Coursepack, Zappos.com: Developing a supply chain to deliver WOW, Stanford Graduate School of Business, Case GS-65, 02/13/09, page 296 [ 3 ]. MGSC 602 Strategic Management of Operations Coursepack, Zappos.com: Developing a supply chain to deliver WOW, Stanford Graduate School of Business, Case GS-65, 02/13/09, page 273 [ 4 ]. MGSC 602 Strategic Management of Operations Coursepack, Zappos.com: Developing a supply chain to deliver WOW, Stanford Graduate School of Business, Case GS-65, 02/13/09, page 280 [ 5 ]. MGSC 602 Strategic Management of Operations Coursepack, Zappos.com: Developing a supply chain to deliver WOW, Stanford Graduate School of Business, Case GS-65, 02/13/09, page 276

Prudence Macintosh :: essays research papers

Prudence Mackintosh, a writer of both novels and magazines articles, was born and raised in Texarkana and now lives in Dallas where she raised her family. Mackintosh went to college at the University of Texas in the sixties. She wrote and still is writing about Texas womanhood and what it is like to be a mother in Texas. Prudence Mackintosh has influenced the world's perception of Texas and the rest of the West through her humorous writing about everyday life in Texas. Prudence Mackintosh has three sons who are grown up now that she raised in Highland Park. All three boys are different. Her oldest son is very well organized and willing do anything she asks him to do, her middle son is very disorganized, and the youngest son is very adventurous. Mackintosh supported them in their decisions and always helped them know how to chose right from wrong. Mrs. Mackintosh wrote a story about when her oldest son he didn't want to play football anymore, and how all the other boys made fun of him. To help him, she wrote a story telling how not all boys had to play football to be tough. Prudence Mackintosh's mother and father were the main influences as she was growing up. She was born into a family of writers, who both worked for the newspaper, her mother wrote articles and her father did editing. Her parents took her to their office where she observed the hectic yet exciting environment of the writers using adult language that children shouldn't hear. So she grew up to think that writing was the job for her. Besides her parents, Maya Angelou was another huge influence on Mrs. Mackintosh. Angelou and Mrs. Mackintosh grew up only twenty five miles apart, but there lives were extremely different. Maya Angelou is sixteen years older so she started her writing career when Prudence Mackintosh was a child. Mackintosh says, "Maya Angelou's first book, "I Know Why the Caged Bird Sings", was an especially strong stuff for me. Maya Angelous' black childhood experiences in Stamp, Arkansas, occurred only twenty-five miles and sixteen years from her very different white childhood in Texarkana, Texas. Angelou's writings influenced her views on racism in her small town. An old friend of hers from college became editor of Texas Monthly Magazine. He remembered how fabulous a writer Mackintosh was from their college years. Their first meeting was in a poetry class when he laughed at her name.

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Introduction Today’s marketers are looking for other approaches to communicate and connect with their target audience and a technique that is receiving more and more attention over the past decade is product placement. Product placement is not a new concept, but it has become much more prevalent in recent years. It is not only due to the changes to the way viewers are watching television, but also for the advent of new technologies. This marketing communications technique is evolving. While before companies tended to sponsor a film, or TV series, now they are buying space within the programme. With this new concept, companies can cut money on very expensive advertisement, and film producers and TV networks can get extra sources of funding for production. Moreover, advertisers are aware that seeing your favourite TV series character sipping a Coca-Cola, using an iPhone or driving a Toyota, can have a far more persuasive effect on viewers due to the emotional connection to the story and characters. Car manufacturers are one type of company that are making the most of product placement, and are signing deals with broadcasting networks and film producers to have their vehicles appearing and characters talking about all the amazing features of a specific car model. Toyota is by far, the company investing the most in the use of product placement, and in fact is trying to impose their presence, not only during episodes of certain TV series, but also dictating the rules to certain TV networks to have dedicated pages on their websites. Marketing Communications It is difficult to find a universal definition of marketing communications, and there are many different orientations regarding the subject. The table below summarises the main ... ...tial effects on consumers’ memory and brand attitudes. Prominent placements are most likely to be remembered, but they have a positive influence on the consumers’ attitude toward a brand only if they are consistent with the plot (Wilbur, Goeree and Ridder, 2008). American consumers, for example, are more likely to buy a product that was shown in a movie, and American students prefer product placement in films to traditional advertising (Lee and Chung, 2009). Moreover, households appear to have better attitudes to product placement, followed by adults 25- 54 and adults 18-49 (Wilbur, Goeree and Ridder, 2008). Overall results of recent studies indicate that consumers are incline to have positive or neutral attitudes towards product placement and that the effect of it can differ depending on consumers’ specific differences in their personalities (Ju and Tinkham, 2011).

H&M Hennes & Mauritz Ab in Retailing

Hennes & Mauritz (H&M) AB in Retailing December 2009 Scope of the Report Retailing – Hennes & Mauritz  © Euromonitor International Scope †¢ This global company profile covers the following products focusing on the year 2009: Retailing: US$10,430 billion Store-based Retailing: US$9,829 billion Non-Store Retailing: US$601 billion Clothing & Footwear Specialist Retailers: US$791 billion Homeshopping: US$190 billion Internet Retailing: US$243 billionDisclaimer Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Euromonitor International cannot be held responsible for omissions or errors Figures in tables and analyses are calculated from unrounded data and may not sum. Analyses found in the briefings may not totally reflect the companies’ opinions, reader discretion is advised Learn More To find out more about Euromonitor International's complete range of business ntelligence on industries, countries and consumers please visit www. euromonitor. com or contact your local Euromonitor International office: London + 44 (0)20 7251 8024 Vilnius +370 5 243 1577 Chicago +1 312 922 1115 Dubai +971 4 609 1340 Singapore +65 6429 0590 Cape Town +27 21 552 0037 Shanghai +86 21 63726288 Santiago +56 2 4332226 2 Retailing – Hennes & Mauritz  © Euromonitor International Strategic Evaluation Competitive Positioning Geographic Opportunities Category Opportunities Brand and Operational Strategies Recommendations 3 Strategic EvaluationRetailing – Hennes & Mauritz  © Euromonitor International Key Company Facts Hennes & Mauritz (H) AB Headquarters Regional Involvement Stockholm, Sweden Asia Pacific, Eastern Europe, North America, Western Europe, Middle East and Africa Clothing and footwear specialist retailers, homeshopping, internet retailing H robust performance in battle with Inditex †¢ The world’s second largest clothing and footwear Sector Inv olvement World clothing and footwear 1. 7% (2009) specialist retailers share 1. 5% (2008) Retail sales value growth (US$) -4. 1% (2009) 17. % (2008) specialist retailer in 2009, behind Inditex, and ahead of Gap, H continued to record strong sales growth in 2008 and 2009. This was achieved partly thanks to a strong performance in its largest market, Germany, with sales in local currency terms up by double-digits. †¢ Inditex’s and H battle for the world’s largest clothing and footwear retailer position is closely fought, while Gap, which was the world’s largest player in this channel until 2007, has been significantly left behind by the leading two. Hennes & Mauritz (H) AB – Sales excl.VAT vs Profit After Tax 90,000 SEK million 80,000 70,000 60,000 50,000 40,000 30,000 2004 2005 2006 2007 2008 Sales excl VAT Profit after tax 18,000 14,000 12,000 10,000 8,000 6,000 SEK million 16,000 H profits remain healthy †¢ H registered sales excluding VAT of S EK88. 5 billion (US$13. 7 billion) in 2008, an increase of 13% over the year, with profit after tax also up 13% to SEK15. 3 billion (US$2. 4 billion), which highlights the group’s high margin. †¢ Its major rival, Inditex, recorded revenue of EUR10. 4 billion (US$14. 5 billion) in 2008, up 10% on the previous year, with net profit up 0. % to EUR1. 3 billion (US$1. 8 billion). Gap registered sales of US$14. 5 billion, down 8% in the year, as it suffered from poor conditions in its core US market, though the company’s net profit grew by 16% to US$967 million, helped by cost savings. 4 Strategic Evaluation Retailing – Hennes & Mauritz  © Euromonitor International Q3 results: Resilient Performance, Continued Expansion Hennes & Mauritz (H) AB – Q1 to Q3 Sales excluding VAT (SEK billion) Profit after tax (SEK billion) Net margin (%) 73. 4 (2009) 62. 2 (2008) 10. 2 (2009) 10. 2 (2008) 13. 9 (2009) 16. (2008) Resilient performance, with sales driven by stor e network expansion †¢ H sales excluding VAT grew by 13% to SEK23. 6 billion (US$3. 4 billion) in the third quarter ending August 2009. Group profits after tax continued to rise, up by 4% to SEK3. 5 billion (US$506 million). †¢ However, same-store sales declined slightly in local currency terms, with consumer sentiment remaining subdued and hindering sales of non-grocery retailers, especially in the US, while the German market was resilient and strong gains were made in Italy. †¢ For the nine months to August 2009, sales were up by 18% to SEK73. billion (US$10. 6 billion), with growth boosted by new store openings. Profits after tax were up by 0. 2% to SEK10. 2 billion (US$1. 5 billion). Low inventory levels were a major factor contributing to keep costs down. Inditex records lower sales growth than H †¢ Inditex recorded revenues up by 7% to reach EUR4. 9 billion (US$7. 1 billion) in the six months to July 2009. Growth in Asia’s emerging markets continued to boost revenues, especially in China and Hong Kong, offsetting a negative economic environment in its Spanish domestic market where it saw a strong decline in like-for-like sales. Although impacted by the recession in Europe, Inditex’s profits were resilient, helped by efficient cost controls. The group recorded net income down by only 8% on the previous year to EUR375 million (US$550 million), despite sustained investments in network expansion. 5 Hennes & Mauritz (H) AB – Net Sales excl VAT vs Profit After Tax 75,000 72,500 70,000 SEK million 67,500 65,000 62,500 60,000 57,500 55,000 52,500 50,000 2008 Q1 to Q3 Net sales excl VAT 2009 Q1 to Q3 Profit after tax 12,000 11,500 SEK million 11,000 10,500 10,000 9,500 9,000 8,500 8,000Strategic Evaluation Retailing – Hennes & Mauritz  © Euromonitor International SWOT – Hennes & Mauritz (H) AB Brand recognition: low price and style Combining style innovations and low prices are staple attributes of the H br and on which it has built strong consumer recognition. High profile advertising and collaboration with designers help make stores shopping destinations and raise the desirability of its ranges. Operational efficiency A strong control of the whole logistics process helps H achieve low costs, while low inventory contributes to maintain margins.Reliance on outsourcing The reliance on production outsourcing, unlike other rivals such as Inditex, puts H at greater risks of damaging its reputation in terms of product quality and poor labour conditions in developed countries. Modest presence in emerging markets Despite being a global player present in 33 markets, H has developed its presence in Europe and North America mostly, unlike Inditex operating in over 70 countries including many emerging markets. Strengths Weaknesses Opportunities ThreatsInternet retailing The rapid growth of clothing and footwear sales through internet retailing is expected to continue and give H opportunities to r each a wider audience, especially in its core demographic target, teenagers and young adults, whose purchases are often influenced by the internet. Untapped potential in emerging markets Urbanisation, increased disposable incomes and changing lifestyles making the population more aware of fashion trends give major growth opportunities in large emerging markets such as China and Russia. There is also potential in markets where H is absent such as Turkey and Romania.Non-food expansion of grocery retailers Hypermarkets and mass merchandisers including Carrefour, Target, Tesco and Wal-Mart are set to continue developing their offer of non-food products and compete directly against H in the value segment of clothing and footwear retailing. Fast fashion becoming more competitive H faces a growing threat from a number of direct competitors with increasingly global ambitions at the low-priced end of the market such as Associated British Foods with Primark, Fast Retailing with Uniqlo and Mar ks & Spencer, alongside a resurgent Gap. 6 Strategic Evaluation Retailing – Hennes & Mauritz Euromonitor International Key Strategic Objectives and Challenges Speed to market and price strategy Fast product turnaround, flexibility and speed to market are major elements determining fast fashion retailers’ operational efficiency. H record is strong comparable to Inditex in most aspects, although Inditex has an advantage regarding speed to market, as a result of its vertical integration business model. In the midst of the global economic crisis particularly affecting clothing and footwear specialists, H chose to avoid heavy discounting in order to maintain its margins and profits.However, more aggressive price wars may force it to discount more and hit its margins. Ongoing international expansion with a focus on emerging markets H presence in emerging markets is less important than Inditex’s, which has a major store network in Latin America and more stores in the M iddle East and Africa. Expanding in emerging markets remains a priority for H, although growth prospects remain strong in developed markets such as Canada and the US where it can enter numerous new cities, especially in Southern States where it has a modest presence.H CEO KarlJohan Persson appointed in July 2009 restated the group’s global expansion targets, although it appears to be slower than expected, with around 160 new stores likely to be opened out of 225 initially planned for 2009. Maintain brand image and increase desirability Collaborations with designers will need to be continued and reinvented to make products more desirable, make stores more popular shopping destinations and strengthen the emotional bond with consumers and H.Distinctive store layout has been used successfully by Inditex with its Zara chain to convey the desirability of its clothes, and this is a strategy that H could also implement to make the store designs a more important aspect of its strategy . This could allow H to maintain an advantage over smaller rivals with increasing global ambitions for their brands such as Primark and Uniqlo. Late entry into internet retailing Although growth in internet retailing sales is particularly promising for clothing and footwear retailers, H has been a late entrant and will struggle to seize the opportunities offered by this channel.It has left numerous other retailers including pure play internet retailers such as Amazon and Asos and the homeshopping specialist Otto take a lead. Hence, it will be difficult for H to target these consumers and generate traffic to its websites, although it could rely on high-profile advertising and innovative sites to succeed. 7 Retailing – Hennes & Mauritz  © Euromonitor International Strategic Evaluation Competitive Positioning Geographic Opportunities Category Opportunities Brand and Operational Strategies Recommendations 8 Competitive Positioning Retailing – Hennes & Mauritz Euromonitor International H Performs Strongly but Growth is Matched by Inditex †¢ International expansion and fashionable product assortment led to strong growth for H and its main rival Inditex, despite a marked slowdown in 2009 due to the global economic crisis and the strength of the US dollar. Clothing & Footwear Specialist Retailers – World – Retail Value RSP excl Sales Tax – US$ – % Year-on-Year Growth 28 24 20 16 12 8 4 0 -4 -8 -12 2005 % y-o-y growth A C B 2006 World C Mode Brenninkmeijer & Co INDITEX – Industria de Diseno Textil 2007 2008 Hennes & Mauritz (H) AB Gap Inc, The 2009A – H sales record strong growth, on a par with C, thanks to global store network expansion. However, Inditex outperforms H thanks to more aggressive network expansion not only in Western Europe, but also in emerging markets. B – Gap under-performs its main rivals, hindered by a strong reliance on its low-growth domestic market and a less aggressive price s trategy than H. Gap’s image also suffers from a product assortment perceived as more staid than H and Inditex’s. C – The rise of the US dollar against other global currencies in 2009 is causing a fall in value sales for all retailers.H low-priced positioning and its wide global presence helps the company remain resilient in a challenging environment for non-grocery retailers. 9 Competitive Positioning Retailing – Hennes & Mauritz  © Euromonitor International Competitive Context: Inditex and H on the Rise World – Top 10 Clothing & Footwear Specialist Retailers 2005-2009 Company name INDITEX – Industria de Diseno Textil Hennes & Mauritz (H) AB Gap Inc, The C Mode Brenninkmeijer & Co Ross Stores Inc Fast Retailing Co Ltd Shinamura Co Ltd Limited Brands Inc Benetton Group SpA Burlington Coat Factory Warehouse Corp 5-year 2009 % 2005 2006 2007 2008 2009 trend share ?Gap loses its crown †¢ Gap saw declining sales in 2007 3 3 2 1 1 1. 7 ? ? ? ? ? ? ? ? 2 1 4 6 8 12 5 11 2 1 4 6 8 14 5 12 3 1 4 5 8 11 7 10 2 3 4 5 6 11 7 8 2 3 4 5 6 7 8 9 1. 7 1. 5 1. 4 0. 8 0. 8 0. 5 0. 5 0. 5 and 2008, due to unfavourable economic conditions in its US domestic market, which accounted for 81% of its global sales through the clothing and footwear specialists channel. †¢ Compared to H, Gap’s higher price positioning hindered its sales, especially in 2008 and 2009 as the global economic crisis dampened consumer spending. Fast Retailing and Shinamura rising Japan-based Fast Retailing posted a strong performance among the top ? 10 10 12 14 10 0. 4 10 global players, helped partly by the strengthening of the yen to the Note: 2009 provisional data US dollar. Competing with a similar price positioning to H, Fast Strong growth for H, overtakes Gap but is surpassed by Inditex Retailing expanded outside Japan, †¢ Strong sales growth for H over the 2005-2008 period enabled it to especially in China and South overtake key rival Gap . H business model based on low-priced fast Korea, and announced at the end of fashion proved highly popular with consumers. 008 its intentions to open stores in †¢ However, Inditex recorded a stronger performance than H, thanks to a European markets and in the US. more aggressive expansion strategy, especially in emerging markets. The latter was partly helped by a greater reliance on franchised outlets. Although †¢ As Japan’s second largest clothing and footwear retailer, Shinamura’s H new store opening strategy was also ambitious, its presence in ranking was also boosted by emerging markets remained modest compared to Inditex’s. avourable exchange rates, but also †¢ Inditex also benefited from a vertical integration business model enabling it to thanks to new store openings. renew collections more frequently than its main rivals, including H. 10 Competitive Positioning Retailing – Hennes & Mauritz  © Euromonitor International H and Indi tex Neck-and-Neck †¢ H and Inditex have both been highly successful in the clothing and footwear specialists channel over the 2004- 2009 period. Their positioning based on low-priced fast fashion enables them to appeal to a wide range of consumers, especially since 2008 and with the major world economies entering recession.Their fast fashion business model also gives the two players the flexibility to change collections rapidly to adapt to consumer tastes, although Inditex has the edge over H in this respect. †¢ International network expansion was also a major part in driving sales of both companies, although Inditex has a greater presence in emerging markets, especially thanks to a wide reach in Latin America. Thanks to its greater reliance on franchising, new market entry requires fewer resources and entails less risk for Inditex than for H, which is more biased towards company-owned outlets. Although both companies saw their World – Retailing Sales 2004-2009 reta il sales in US dollar terms hit by the fall in the value of the euro 15,000 against the US dollar, they retained their lead over Gap. The latter’s 12,500 strong dependence on the US market proved a disadvantage, as it suffered 10,000 disproportionately from the recession in its domestic market in 2008 and 7,500 2009, which it could not offset with expansion in emerging markets, where it remains absent. ,000 †¢ In addition, Gap adopted a less aggressive pricing strategy than its 2,500 peers, thus losing share rapidly to H and Inditex, but also to players 0 in other channels in the US such as 2004 2005 2006 2007 2008 2009 mass merchandisers Target and WalHennes & Mauritz (H) AB INDITEX – Industria de Diseno Textil Mart. Retail value sales rsp excl tax (US$ mn) 11 Competitive Positioning Retailing – Hennes & Mauritz  © Euromonitor International Overall Stagnation in Sales per OutletWorld – Top 10 Clothing & Footwear Specialist Retailers – Sales per Outlet 2004-2009 – US$ Fixed Exchange Rates Company name INDITEX – Industria de Diseno Textil Hennes & Mauritz (H) AB Gap Inc, The C Mode Brenninkmeijer & Co Ross Stores Inc Fast Retailing Co Ltd Shinamura Co Ltd Limited Brands Inc Benetton Group SpA Burlington Coat Factory Warehouse Corp Note: 2009 provisional data 2004 3,130,909 7,103,455 5,233,467 7,658,816 6,571,607 5,663,966 3,168,427 2,541,956 916,038 8,482,203 2005 3,222,196 7,072,943 4,976,290 7,435,090 6,719,945 4,185,028 3,129,442 2,686,424 911,815 9,062,259 2006 3,245,793 7,102,853 4,882,942 7,276,803 6,967,172 3,720,254 3,222,800 2,799,494 896,071 9,090,081 2007 3,374,326 7,194,397 4,648,360 7,195,536 7,136,890 3,884,908 3,196,295 2,778,019 913,342 9,032,800 2008 3,291,002 7,279,016 4,180,204 6,979,826 6,784,922 4,520,068 3,201,177 2,636,235 949,993 8,904,762 2009 3,267,473 7,303,864 3,753,935 6,843,244 7,238,611 5,203,178 3,163,917 2,543,005 960,191 8,068,446 % growth 2004/2009 4. 4 2. 8 -28. 3 -10. 6 10. 1 -8. 1 -0. 1 0. 0 4. 8 -4. 9Modest growth in sales per outlet for most players, including H †¢ The growth trend in sales per outlet broadly matches the trends in overall sales growth for the top four global retailers, with H and Inditex outperforming C and Gap. Higher sales per outlet for H compared to Inditex largely reflects H larger average outlet size. †¢ Downward price pressure and prevalent discounting in apparel retailing, accompanied by the growing reliance on production outsourcing to low labour cost countries in the clothing industry, contributed to the stagnation or slight decline in sales per outlet for most retailers, especially for C and Fast Retailing. Sharp contraction for Gap †¢ Gap’s higher-priced positioning and its relative resistance to discounting led to a sharp drop in sales per outlet, as it pted to maintain its margins at the expense of overall sales growth. 12 Retailing – Hennes & Mauritz  © Euromonitor International Str ategic Evaluation Competitive Positioning Geographic Opportunities Category Opportunities Brand and Operational Strategies Recommendations 13 Geographic Opportunities Retailing – Hennes & Mauritz  © Euromonitor International A Global Player Still Dependent on Western Europe †¢ Among H top 10 global markets in 2009, all of them were located in Western Europe apart from one, the US. This highlights the company’s modest presence in emerging markets. Western Europe will account for 84% of the group’s sales in 2009.This proportion exceeded 90% in 2005, which illustrates H relative success in expanding its presence globally in order to offset the maturity and saturation in Western Europe’s clothing and footwear retailing. †¢ The company’s largest market, Germany, will account for 26% of world sales in 2009. No other market had a share of global sales exceeding 10%, while the domestic market, Sweden, accounts for 5%, which shows that H is not overly dependent on the economy of a single market. In comparison to H, Inditex is more dependent on its domestic market, which will generate 37% of its world sales in 2009. Both companies seek to extend their global reach, especially in emerging markets, although Inditex has a clear lead in this respect.Hence, H operates in 33 markets as of October 2009, compared to around 70 markets for Inditex. Hennes & Mauritz (H) AB – Clothing & Footwear Specialist Retailers (Company's 10 Largest Markets) 2. 0 1. 5 %CAGR 2009-2014 Netherlands Norway Spain 1. 0 Austria 0. 5 Sweden 0. 0 -0. 5 -1. 0 -1. 5 -2. 0 -2. 5 0 25,000 50,000 75,000 100,000 Market Size 2009 (US$ mn) 125,000 150,000 175,000 France Switzerland USA Opportunity Zone Germany United Kingdom Bubble size shows company sales in market, range displayed: US$536 – 3,497 mn 14 Geographic Opportunities Retailing – Hennes & Mauritz  © Euromonitor International Western Europe: Ongoing Expansion for H&M and Inditex H& M has a wide presence covering most Western European markets, in which its two main competitors are Inditex and C&A. All three companies have seen their share increase over the 2004-2009 period at the expense of smaller players, especially those with a national presence only. †¢ The shares of H&M and Inditex were driven by aggressive continuous network expansion across most markets. H&M has seen major ongoing store network expansion in most major European markets in 2008 and 2009, especially in France, Germany, Italy, Spain and the UK. Its business model has proved to be relatively recession-proof, thanks to its low prices. †¢ C&A has been distanced by the two largest operators.Positioned as a value retailer targeted at families, C&A lost ground thanks to a less fashionable image and an inferior international presence. The company is absent from major European markets including Italy and the UK, and over 50% of its sales in Western Europe are derived from the German market . Clothing & Footwear Specialist Retailers: Retail Value RSP excl Sales Tax – Company Shares by GBO 4 % value share 3 2 1 0 2004 2005 2006 2007 2008 2009 14 12 % value share 10 Hennes & Mauritz (H&M) AB Company Shares – Top 6 Markets – Clothing & Footwear Specialist Retailers – Retail Value RSP excl Sales Tax 8 6 4 2 0 2004 2005 2006 2007 2008 2009 C&A Mode Brenninkmeijer & Co Hennes & Mauritz (H&M) AB INDITEX – Industria de Diseno Textil France Netherlands SwedenGermany Spain United Kingdom 15 Geographic Opportunities Retailing – Hennes & Mauritz  © Euromonitor International Western Europe: Primark Emerges as New Major Player Primark expends beyond the British Isles to emerge as a new European player †¢ Primark, owned by Associated British Foods, only recently expanding outside Ireland and the UK with its first outlets in Spain in 2008 and Portugal and test stores in Germany and the Netherlands in 2009, has ambitions to develop a wid e pan-European network. A new market entry is planned in Belgium in 2010. The success recorded by its first stores in Spain indicates that it could become a major Europe-wide player. With a strong brand image based on low prices and trendy collections following fashion trends closely, Primark targets teenagers and young adults, thus competing directly against H&M in terms of demographic and price positioning. Clothing & Footwear Specialist Retailers – Western Europe and United KingdomRetail Value RSP excl Sales Tax – Company Shares by GBO 6 5 % value share 4 3 2 1 0 WE – Hennes & Mauritz (H&M) AB WE – Associated British Foods Plc (ABF) 2005 2006 2007 UK – Hennes & Mauritz (H&M) AB 2008 2009 UK – Associated British Foods Plc (ABF) 16 Geographic Opportunities Retailing – Hennes & Mauritz  © Euromonitor International Recent and Planned Market Entries: Japan, South Korea †¢ Although geographic expansion has been a central feature o f H&M’s strategy, it has focused until recently on Europe nd North America, in contrast to Inditex venturing in several markets in Latin America and Asia Pacific and C&A’s major presence in Brazil. Recent new market entries in Japan in September 2008 and the planned entry in South Korea in spring 2010 confirm H&M’s adoption of a strategy to be less dependent on Europe and North America. Successful new entry in Japan in 2008 †¢ With its first store in the upmarket shopping district of Ginza in Tokyo, H&M’s market entry was successful. Initial reception was very favourable to the new chain, with around 50,000 shoppers visiting the Ginza store over the first week of opening, and a second Tokyo store was opened in November 2008 in the trendy district of Harajuku. The Harajuku outlet was the first H&M worldwide to sell the fashion labelComme des Garcons, with a collection designed by the Japanese designer Rei Kawakubo. This strategy helped create anticipa tion ahead of the new store opening among fashion-conscious consumers and gives H&M a more exclusive image in Japan than it has in other markets. †¢ Two more outlets in Tokyo are planned by the end of 2009 and a fifth is due to open in 2010, in Osaka. In order to expand faster in the mature Japanese market and to match the scale of its larger rival Inditex, H&M is considering acquisitions to be a possible expansion strategy. Intense price competition in Japan †¢ In a market hit by severe recession in 2009, price competition for clothing and footwear items has intensified. This as highlighted by mass merchandiser chains Justo (Aeon), Ito-Yokado (Seven & I) and Seiyu (Wal-Mart) starting to offer jeans at around ? 1,000 in 2009. Among H&M’s most direct competitors in terms of price and image, the dynamic player Fast Retailing with the Uniqlo chain combining low price and fashionable ranges, followed a similar price move in 2009. However, regardless of price H&M has an advantage in terms of fast fashion in being able to source and offer new products and refresh its collection more frequently than Fast Retailing. South Korea – following in the footsteps of Inditex †¢ Following its successful entry in Japan, H&M plans to open its first outlet in South Korea in March 2010 at a flagship store in Seoul’s business district of Myungdong.In a market less saturated than Japan’s and with fewer major international clothing and footwear specialist chains, H&M is expected to be successful. However, similarly to Japan, H&M enters after Inditex has already established a footprint in 2007 and expanded rapidly since. 17 Geographic Opportunities Retailing – Hennes & Mauritz  © Euromonitor International Further Growth in Large Emerging Markets: China, Russia †¢ With little presence in emerging markets, H&M is attempting to catch up with rivals, especially by expanding in large emerging markets, especially in China and Russia. Ongoing expansion in China to continue †¢ Following market entry in Hong Kong in 2007, H&M expanded rapidly in 2008 and 2009 with new stores in mainland China.Sales in China accounted for almost 1% of global sales in 2009. The first outlet in Beijing was opened in April 2009 south of Tiananmen Square, with H&M becoming the first foreign retailer to be present in this newly renovated part of the city. In order to create more anticipation around the store opening among consumers, it coincided with the launch of a new collection in collaboration with the designer Matthew Williamson. H&M’s presence in China is expected to continue expanding rapidly through new store openings, both in existing cities and by entering new cities where it can target the rapidly growing number of middle-class urban consumers. Among H&M’s global rivals, although Inditex expanded in China and Hong Kong earlier than H&M and has a stronger presence with more outlets, it has a less developed su pplier network in Asia than H&M, and as a result it can struggle to offer competitive prices to compete against H&M and also against local players, which may lead to the adoption a more differentiated positioning than in other markets. †¢ With Gap planning to enter China in 2010, it is likely that a greater number of international clothing and footwear specialist retailers will enter the market. Competing in a similar price segment to H&M, Fast Retailing announced at the end of 2008 its long-term objective to have 100 Uniqlo outlets in China. Russia – untimely entry but sound long-term prospects †¢ H&M opened its first store in Russia in Moscow in March 2009. However, suffering from a fall in gas and oil revenues, the country’s deep recession in 2009 is worse than previously anticipated and makes H&M’s market entry untimely.Rival Inditex has developed a major presence in Russia over several years, which has allowed the group to take advantage of the bo oming economy until 2008 to expand and establish a wide customer base. Longer term, H&M is set to emerge from the recession relatively unscathed thanks to its low-priced positioning and to have major growth prospects. Key point: With no presence in Latin America unlike C&A and Inditex, H&M could benefit from entering the large markets of Brazil and Mexico where its low prices should help build a major customer base. 18 Geographic Opportunities Retailing – Hennes & Mauritz  © Euromonitor International Franchise Deals Give New Middle East Opportunities Middle East and Africa expansion set to gather pace †¢ H&M’s presence in the main Middle East market, the United Arab Emirates, continued to increase rapidly in 2009 hanks to the franchise agreement signed in 2006 with the Kuwait-based company MH Alshaya Group. †¢ Opting to expand through franchise stores and using a similar growth model as Inditex represents a major new development in H&M’s global expan sion strategy in emerging markets, which is likely to help accelerate its global expansion. †¢ Thanks to the partnership with Alshaya Group, H&M entered the markets of Bahrain and Oman in 2009, and also opened its first two stores in Egypt in the second half of the year. H&M is likely to enter other new markets in the Middle East and Africa by the end of 2009, or in 2010, including Lebanon. †¢ Under another franchise deal signed with the local company Match Retail, H&M plans to enter Israel in 2010.Dedicated store concept for Saudi Arabia †¢ As store concept adaptation is an important ingredient in the success for foreign retailers operating in the Middle East and Africa, and require close attention, franchise partners are in a better position than H&M to implement new concepts. †¢ For example, in order to comply with local sharia law that forces shops to have segregated areas for men and for women, for its market entry in Saudi Arabia in autumn 2008, H&M opted t o adapt its store concept to be only open to women and staffed by women. 19 Retailing – Hennes & Mauritz  © Euromonitor International Strategic Evaluation Competitive Positioning Geographic OpportunitiesCategory Opportunities Brand and Operational Strategies Recommendations 20 Category Opportunities Retailing – Hennes & Mauritz  © Euromonitor International Modest Growth Forecast for H&M’s Main Channel †¢ H&M’s sales through the clothing and footwear specialist retailers channel will account for around 97% of its sales in 2009. This channel is forecast to record modest growth over the 2009-2014 period. While channel sales were hindered by the global economic crisis in 2008 and 2009, they are likely to recover to some extent, although they will remain affected by low price pressures on clothing prevailing within this distribution channel as well as in other channels.H&M has stronger prospects than most other clothing and footwear specialist players thanks to its wide international presence and low-cost and flexible business model allowing the group to undercut most rivals while remaining at the forefront of fashion trends. †¢ The remainder of H&M’s sales is accounted for almost equally by homeshopping and internet retailing, although the latter is increasingly supplanting the former, mirroring the wider industry trend. Expanding internet retailing presence will help offset the growing saturation of clothing and footwear retailing. Unlike Inditex, which is also present in the furniture and furnishings stores channel in a number of markets under the Zara Home brand, H&M does not operate other store-based formats. Hennes & Mauritz (H&M) AB – Global Retailing Presence & Prospects by Channel 9 8 7 6 5 4 3 2 1 0 -1 0 100,000 Internet retailing % CAGR 2009-2014Clothing & footwear specialist retailers Homeshopping 200,000 300,000 400,000 500,000 600,000 Market Size 2009 (US$ million) 700,000 800,000 900,000 Bubble size shows company sales in this channel (2009). Range displayed: US$169 – 13,118 million 21 Category Opportunities Retailing – Hennes & Mauritz  © Euromonitor International Battling Against Hypermarkets and Mass Merchandisers Grocery retailers and mass merchandisers increase price pressure on clothing and footwear specialists †¢ Clothing and footwear specialist retailers are increasingly seeing more intense competition from rivals operating †¢ †¢ †¢ †¢ mostly in other store-based channels, such as mass merchandisers and hypermarkets.As H&M is positioned in the low-priced segment in clothing and footwear retailing, it is vulnerable to the direct competition from these channels and needs to cultivate its clear competitive advantage in terms of fashion and desirability. An example of the intensifying competition affecting clothing and footwear retailers is the price war between Fast Retailing (Uniqlo) and mass merchandisers Aeon (Jusco) and Wal -Mart (Seiyu) in Japan to sell jeans at around ? 1,000 in 2009. In the US, Gap’s sales have been eroded by the success of mass merchandiser Target’s aggressively priced clothing ranges. In Western Europe, the expansion of major hypermarket operators including Auchan, Carrefour, Tesco and Wal-Mart into non-food products is set to continue as they seek to improve margins.Although this trend has slowed down to some extent in 2008 and 2009 due to the global economic crisis, with grocery retailers refocusing at least temporarily on more recession-proof food items, the longer-term trend is expected to see hypermarkets attempting to be more competitive in their offer of clothing and footwear, with more appealing ranges to compete more directly against specialist non-grocery retailers. In the UK, Wal-Mart’s Asda chain, thanks to the increased sales of its George apparel range in 2009, threatens to overtake Marks & Spencer and Associated British Foods’ Primark cha in to become the country’s largest clothing retailer. Tesco saw clothing sales improve in the first half of 2009 alongside growth in non-food sales, up by 8%. Meanwhile, Sainsbury’s is planning to increase space allocated to non-food ranges in 2010 and 2011 and widen the reach of its successful TU range of clothes by offering it at more stores. 22 Category OpportunitiesRetailing – Hennes & Mauritz  © Euromonitor International Internet Retailing: H&M’s Late Entry H&M and Inditex both rise to the challenge and plan to develop internet retailing †¢ Beyond store-based rivals, clothing and footwear specialist retailers are increasingly battling against internet retailers and most of them react by developing or expanding their own online retailing activity. With consumers’ familiarity with ordering online generally on the rise, coupled with efforts from internet retailers to make their websites more visually appealing and user-friendly, consumersà ¢â‚¬â„¢ confidence in ordering clothes via the internet has been strongly boosted. Major homeshopping retailers which are also leading players in clothing, for example, Otto, are increasingly moving online. Similarly, H&M’s homeshopping sales in Austria, Germany, Netherlands and the Nordic countries are gradually migrating to internet retailing. The company’s significant experience in homeshopping in these markets prepares it well to tackle the logistics aspects to make internet retailing operations efficient across European markets. †¢ Both Inditex and H&M made announcements in 2009 indicating that they are gradually joining the fray and expanding online in most European markets. Inditex will start operations in major European markets by early 2010, while H&M will launch its website in autumn 2010 in the UK.Thanks to its wide product assortment, the vast choice increases H&M’s chances of success in internet retailing although this requires the site to be d esigned in a way to be easy to navigate. †¢ However, H&M is a late entrant in the channel and appears to have made a protracted move, with a plethora of major other operators including Amazon, Asos, the John Lewis Partnership, Marks & Spencer and Tesco having already obtained a strong foothold in UK online clothes retailing. Rival Gap also plans to launch its own website in the UK, following its earlier initiative in 2009 to sell its products on the Asos. com website. In the US, Gap has a multibrand website and offers combined delivery on cross-brand orders.Aggressive expansion from internet retailing specialists and grocery retailers †¢ Major grocery retailers have high ambitions for online clothes sales, as shown by Tesco’s relaunch of its UK clothing website in September 2009 offering private label and brands, and with Wal-Mart’s Asda offering the George label at Asda Direct since 2008. Websites of grocery retailers also often offer the added convenience o f click-and-collect services. Among specialist internet retailers, Amazon’s acquisition of the US online clothes retailer Zappos for US$850 million in August 2009 signals its ambitions in apparel retailing, and its low prices and high number of visits from customers give it key competitive advantages.Key point: With internet retailing making price comparisons between retailers easier, H&M should focus on advertising its low prices and promotions on its transactional website, while also emphasising the more fashionable design of its clothes in order to differentiate its website from Amazon and the grocery retailers. 23 Retailing – Hennes & Mauritz  © Euromonitor International Strategic Evaluation Competitive Positioning Geographic Opportunities Category Opportunities Brand and Operational Strategies Recommendations 24 Brand and Operational Strategies Retailing – Hennes & Mauritz  © Euromonitor International H&M: A Widely Recognised Global Brand Strong brand a wareness and image †¢ H&M’s strong brand image is associated with value and stylish collections, helped by the collaborations with famous designers. The latest example is the creation of the Jimmy Choo collection to be launched in November 2009.Such events create a great amount of publicity and media coverage to generate added footfall. †¢ In a similar way to Inditex, H&M relies on opening stores at a few flagship locations in major cities in order to build its brand image. Examples of such stores include the Harajuku store in Tokyo and the Champs Elysees store in Paris planned for 2010. †¢ Highlighting the H&M brand’s high level of awareness, it was ranked 21st among the top 100 most valuable global brands according to Interbrand in 2009, with a value exceeding US$15 billion. In comparison, Zara ranked only 50, while Gap came in at number 78. High-profile advertising with celebrities is widely used by H&M, unlike Inditex.H&M spends around 5% of its reve nues on advertising. H&M Brand geographic Asia Pacific, Eastern involvement Europe, Middle East and Africa, North America, Western Europe Brand channels Clothing & footwear specialist retailers World ranking & share 1 and 1. 6% (2009) in clothing and footwear specialist retailers Multi-brand approach from Inditex †¢ In sharp contrast to H&M’s almost exclusive Brands other than H&M gain greater importance †¢ The more upmarket COS successfully launched in the UK in 2007 enabling the group to target wealthier customers and potentially increase its margins. It was subsequently extended to other markets: Belgium, Denmark, Germany and the Netherlands. The Swedish chain Monki, acquired in 2008 and known for its sophisticated and colourful store designs, is not being rebranded and was expanded outside Sweden in 2009 with two stores in Denmark. This should allow H&M to diversify its customer base. reliance on its eponymous brand, Inditex has adopted a strategy based on build ing a vast brand portfolio including Bershka, Massimo Dutti, Pull and Bear, Zara and Zara Home. †¢ The key competitive advantages resulting from this company’s multi-brand strategy is its ability to target a wide range of consumer groups with brands and products tailored to various tastes in order to bring exclusivity and differentiation. The level of independence of the company’s major brands is also an important aspect of Inditex’s capacity to adapt quickly to changing market conditions. Group synergies are ensured thanks to the group's vertical integration, which also contrasts with H strategy of outsourcing. 25 Brand and Operational Strategies Retailing – Hennes & Mauritz  © Euromonitor International Operations and Private Label Strategies Production outsourcing vs.. vertical integration †¢ H sources around 70% of its product assortment from Asia and over one third is purchased from China. It relies heavily on outsourcing production, with over 21 production offices worldwide (10 in Europe, 10 in Asia and 1 in Africa) liaising with over 750 factories.In contrast, Inditex sources the majority of its products from Europe, and most of its production is made in-house in order to cut the time lag between product design and in-store availability. †¢ Although production in Asia helps H undercut Inditex on price, it also makes it more vulnerable to currency fluctuations, with the value of the US dollar strengthening in 2009 against European currencies and making imports from Asia more expensive in its main market, Europe. This reduced at least temporarily the scale of its competitive advantage over Inditex. Low inventory levels †¢ H operational efficiency is reflected in the level of inventory being usually low thanks to the frequent renewal of its collection.However, the focus on reducing inventory in order to protect margins has been detrimental to sales in some months in 2009, especially over the summer, when the company had relatively few items available for markdowns. Although H generally achieves low inventory costs, it is likely to be often surpassed by Inditex in this respect. As one of the pioneers of the fast fashion business model with new ranges being introduced every two weeks, Inditex is particularly efficient in incorporating feedback from stores daily into the development of new products, thanks to vertical integration and as such, H cannot replicate this model. Private label ranges under various names †¢ All of H product assortment consists exclusively of private label. Private label ranges have various names to arget different genders and customer types. For example, Hennes is targeted at 25-35 year-old women, L. O. G. G. is a casual sportswear label and MAMA is a maternity range. Key point: As European consumers’ awareness of ethical issues increases, H is vulnerable to negative publicity surrounding working conditions at factories producing its clothes in Asia. Since it outsources a greater share of its products from Asia than Inditex and has less control over its supply chain, H auditing of factories must be strict and transparent to limit the chances of poor labour conditions being publicised and tarnishing its brand reputation. 26 Retailing – Hennes & Mauritz Euromonitor International Strategic Evaluation Competitive Positioning Geographic Opportunities Category Opportunities Brand and Operational Strategies Recommendations 27 Recommendations Retailing – Hennes & Mauritz  © Euromonitor International Key Recommendations Develop more premium chains alongside core low-priced offering †¢ H focus on affordability remains Internet retailing to be differentiated and wide-reaching †¢ As H is a late entrant in the New market entries and expansion in existing markets †¢ Entering into new emerging a core element of its success and contributed to make the retailer resilient in a recessionary economic environment. Alth ough its low-priced and fashionable image with its eponymous brand H should not be jeopardised, in addition to cultivating it, the retailer should also attempt to widen its customer base and especially target wealthier consumers with its other banners such as COS and Monki stores offering edgy fashion. This could also help increase profits once the economy recovers and consumers become less cost-conscious. internet retailing arena in most European markets and arrives in a crowded and competitive market where Amazon and Otto have made inroads, it will need to offer innovative transactional websites that can convey effectively the textures, colours and finish of its clothes in order to differentiate its offer but still highlight the low prices. H presence in internet retailing could also be extended to markets where it does not seek to open physical stores, mirroring the example of Marks & Spencer delivering products to around 80 countries since autumn 2009. markets, especially in nei ghbouring markets to those where it operates, offers considerable growth opportunities for H. †¢ Romania and Turkey are large European markets where the store concept is likely to be popular and where rival Inditex has developed a major store network. In Latin America, Mexico offers opportunities in the value segment of clothing and footwear retailing. Although it is well covered by C and Wal-Mart, H can cater for more fashionconscious consumer groups. In Asia Pacific, H burgeoning presence could accelerate by expanding to new cities, especially in China and Japan. In the latter market, new store concepts and collections or new banners such as COS and Monki could be tested. 28 Retailing – Hennes & Mauritz  © Euromonitor International Experience more†¦ This research from Euromonitor International is part of a global strategic intelligence system which offers a complete picture of the commercial environment . Also available from Euromonitor International: Global Bri efings The state of the market globally and regionally, emerging trends and pressing industry issues: timely, relevant insight published every month. Global Company ProfilesThe competitive positioning and strategic direction of the leading companies including uniquely sector-specific sales and share data. Country Market Insight Reports The key drivers influencing the industry in each country; comprehensive coverage of supply-side and demand trends and how they shape the future outlook. Interactive Statistical Database Market sizes, market shares, distribution channels and forecasts; the complete market analysed at levels of category detail beyond any other source. Strategy Briefings Executive debate on the global trends changing the consumer markets of the future. Learn More To find out more about Euromonitor International's complete range of business intelligence on industries, countries and consumers please visit

The Declaration of Independence and the French Declaration of the Rights of Man essays

The Declaration of Independence and the French Declaration of the Rights of Man essays Both the American Declaration of Independence of 1776 and The French Rights of Man of 1789 can be compared in many ways. Both of these documents have revolutionary ideas and were a means of both America and France to overthrow the government of that time. These documents are well thought-out and address many if not all of the problems that the people of these two countries were facing. In both cases, they are standing up against monarchy rule which in general had made their standards of living unbearable. Without these two documents, the world as we know it today would not be the same, who knows how the government would be. The first of the two documents is The American Declaration of Independence. This document was set forth on July 4, 1776, by the Thirteen Colonies. In a nutshell, it was announcing the separation of those colonies from Great Britain and turning them into the United States. The Declaration of Independence was a document which was carefully thought out and put together over a period of many days. The first call for this document to be written up was by Richard Henry Lee on June 7, 1776. Lee was in a congressional meeting when he introduced the idea of a declaration to gain independence from Great Britain, and it was immediately seconded by John Adams. "On June 11, John Adams, Benjamin Franklin, Thomas Jefferson, Robert R. Livingston, and Roger Sherman were instructed to draft such a declaration; the actual writing was entrusted to Jefferson. " It was then revised by Franklin, Adams, and Jefferson before it was sent to Congress to get its final revision. The Declaration was then deba ted over, signed by fifty-six delegates, and finally released. America had put a start to what would be an eventual victory. The Declaration of Independence included many key arguments against the rule of King George III and the hardships in which he put the colonists of the Thirteen Colonies. In the opening, it states that the King...

Olive Seniors Decision To Abandon Poetic Conventions English Literature Essay Essay Example

Olive Seniors Decision To Abandon Poetic Conventions English Literature Essay Essay Example Olive Seniors Decision To Abandon Poetic Conventions English Literature Essay Essay Olive Seniors Decision To Abandon Poetic Conventions English Literature Essay Essay Senior presents life styles of different households and how a catastrophe peculiarly hurricanes can hold changing effects on each. Senior, in Tropic Love uses a simple duologue between a adult male and a adult female to foreground the features of a typical tropical relationship and the issues that adult females face in these relationships. Man wants sex and company but hesitates to offer committedness. In these three verse forms there is small or no grounds of conventional manners, signifiers and elements of poesy nevertheless, issues and concerns are presented and the reader is able to understand and hold on them. Therefore, Senior s intent is achieved and so clearly disputes the moot. Olive Senior does non pass extra clip guaranting that the lines in her verse forms follow a peculiar rime strategy or contains a set figure of lines. Neither is her poesy encumbered by images, nonliteral devices or complex or elaborate constructions. I can conceive of, had Senior made these conventions her precedence the chief purpose of her work would hold died. Thus it must be re-emphasized that her determination to be different produced more good than injury. Senior s intent is to guarantee that when individuals read her verse forms they are able to associate to the state of affairss and be able to understand them. How so can that be possible if one has no thought as to what the topic of the verse form is? Senior utilizations certain characteristics which some poets would jeer at such as storytelling narrative, gossip Creole slang. However, these characteristics make her verse forms relatable, reviewing and they pull readers. These are the characteristics which are common to her r eaders rendering her verse forms apprehensible. One could state that Olive Senior divergence from poetic conventions works to demo grasp to life and that there is more to poetry than merely giving rime, but to admit the of import things and battles in life with each line or stanza. The manner in which Senior writes the stanzas in her verse form is besides a divergence from poetic convention but it aids in doing her work more originative as in the verse form Yemoja where the stanzas are created as such where it resembles the dorsum and forth motion of the ocean moving ridges. The verse form outlines how nature is closely linked and the decease or discontinue of the H2O rhythm would ensue in the decease of life itself as outlined in her verse form. The verse form Yemoja shows how nature ( the H2O ) nurtures the land as a female parent would foster her kid and can be linked to the fact that the life of a kid depends on the female parent and the life of the land depends entirely on H2O. Senior chooses to divert from the conventional manner of composing poesy with an penetration of phantasy as she sees poetry more than merely an look of oneself but besides to convey visible radiation to the battles of life as displayed in another of her verse forms Hurricane Narrative 1903 where the support of the people depended on their farm animal and is a contemplation of the lives of most Caribbean people and how they survive off their farm animal and if suck a catastrophe like the hurricane. Senior besides deviates to sketch the male and female relationship in the verse form as it display how the function of the grandma was to foster while the gramps took on undertakings which demanded musculus which could be noted besides as a characteristic of households in the Caribbean. Through her divergence she besides portrays how worlds and nature are closely linked and at times sends a warning as shown in Hurricane narrative 1903 . But he was the 7th boy of a 7th boy and could read marks and interpret admirations so when the sups flew below the roof line, when the sky took on a particular Prunus persica freshness, when flocks f birds sailed west over the hill. When clouds banked at the far side and the air was still, he knew it was clip to secure down. Therefore she shows that nature and serves as an betrayer to adult male and a development or the changeless usage of engineering diverts our attending from nature. Olive Senior is a station colonial author and it is typical of her to divert from poetic conventions. By making so Senior is proposing that poesy can still be as effectual or even more effectual even if one does non conform to poetic conventions. Senior may hold seen conventions as a modern twenty-four hours signifier of bondage and therefore was wishful of interrupting free of all the elements that tried to suppress her. Through making so she besides highlights or brings to the head the right of freedom of look, a right to which the enslaved had been deprived. Senior s poesy celebrates her individuality and lineage ; it provides her and her reader with a renewed sense of pride. In order to accomplish this senior had to make off with the conventional ways of composing poesy. Thus she produced an art uniquely Caribbean, an art which reflects her determination to interrupt away. Olive Senior s determination to divert has in no manner had a negative impact on the response of her work. Without her dare to be different at that place would non hold been the realisation that being different does non intend losing.

Chapter Titles of How To Read Literature Like a Professor Essays

Chapter Titles of How To Read Literature Like a Professor Essays Chapter Titles of How To Read Literature Like a Professor Paper Chapter Titles of How To Read Literature Like a Professor Paper Essay Topic: Literature Chapter one Every trip is a quest (except when its not) Chapter two Nice to eat with you: acts of comminion Chapter three Nice to eat you: acts of vampires Chapter four Now, where have I seen her before? Chapter five When in doubt, its from Shakespeare Chapter six or the bible Chapter seven Hanseldee and Greteldum Chapter eight Its Greek to me Chapter nine Its more than just rain or sniw Chapter ten Never stand next to the hero Interlude #1 Does he mean that? Chapter 11 more than its gonna hurt you: concerning violence Chapter 12 Is that a symbol? Chapter 13 Its all political Chapter 14 Yes, shes a Christ figure, too Chapter 15 Flights of fancy Chapter 16 Its all about sex Chapter 17 except sex Chapter 18 If she comes up, its baptism Chapter 19 Geography matters Chapter 20 so does season Interlude #2 One story Chapter 21 Marked for greatness Chapter 22 Hes blind for a reason, you know Chapter 23 Its never just a heart disease And rarely just illness Chapter 24 Dont read with your eyes Chapter 25 Its my symbol and Ill cry if I want to Chapter 26 Is he serious? And other ironies Chapter 27 A test case

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House Prices - Speech or Presentation Example You have read the Case in the attached PDF file. A partial summary of the data is presented below in Table 1. Use the information in the Table below to answer the questions raised by Jack, Jill and Pelo Watar, Specifically, At first glance, the average price of the houses for Apple Valley School District is higher than the prices for Eastville School District as illustrated by Figure 1. The difference between the mean prices of the two districts is $17,142. However, other factors can affect the high prices in Apple Valley School District such as the age, size, and number of bedrooms. Table 2 shows that the price per square ft in both districts is closer to each other, with a difference of $6.081. The data shows that the assumption that buyer’s prefer the Apple Valley School District has no basis. The price of the house depends on the age of the house. Table 3 shows that the older houses have lower prices than new houses. Houses at Apple Valley School District are newer than the houses at Eastville School District. The Price per Age of house at Apple Valley is almost $10 as compared to Eastville which only exceeds $7. Prices of the houses at Apple Valley School District are higher compared to houses at Eastville School district not because of the buyers’ preference to the school but for several reasons. First, the average sizes of the houses in Apple Valley are bigger than Eastville. Second, the houses are newer. Third, there are more bedrooms per house in Apple Valley than in Eastville School

Why are so many young people homeless What policies would help move Essay

Why are so many young people homeless What policies would help move towards resolving these issues - Essay Example Demographic data point out simultaneous trends of ethnic minority segregation and dispersal (CCSR, 2009). Council house can be stated as a form of social and public housing, generally demoted in United Kingdom and Ireland Republic. Council houses are operated and build by the local councils to furnish un-crowded, well constructed homes on the safe tenancies at below the market rents to mainly working class people. In 1979, the council housing role was reduced by the introduction of the right to get legislation as well as emphasis change to development of fresh social housing through housing associations. Around 40% of country’s communal housing stockpile is owned through local authorities (Government of United Kingdom, 2009). In M. Luthra’s paper it was argued that susceptible acceptances of retreat from generally anti-racist perspectives may become an anti-oppressive exercise which may lead to reduction of every such crucial perspective surrounded by the social work to a certain extent than their regeneration. The writer after much meticulous review tells that such anti-oppressive paradigm will carry out as the social norm in future work. UK has large mixed-race residents, which constitutes around the 1.2% of population. The largest secondary group consists mainly of mixed Black and Whites group as well as mixed Whites and the Asians. There are, on the other hand, 70,000 UK people who are mixed and cannot be described by the above categories. An important proportion of those persons are Afro-Asian. Prominent Afro-Asian Britons includes Naomi Campbell and David Jordon. Huge number of Pakistani, Bangladeshi, Caribbean and the African citizens face the multiple difficulties and also negative outcome s like poor housing and health and low skills and qualifications. British African Caribbean Communities are the residents of UK who are of West Indian

The Philosophy of Buddha Term Paper Example | Topics and Well Written Essays - 1250 words

The Philosophy of Buddha - Term Paper Example Buddha taught four basic truths to people: Dukkha, Samudaya, Nirodha, Maggo. Dukkha According to Dukkha, â€Å"Birth is suffering, old age is suffering, disease is suffering, death is suffering, to be united with the unpleasant is suffering, to be separated from the pleasant is suffering, not to receive what one craves for is suffering, in brief the five Aggregates of Attachment are suffering †. Samudaya Samudaya says that â€Å" it is the desire which leads from rebirth to rebirth accompanied by the lust of passion, which delights now here now there; it is the craving for sensual pleasures, for existence and for annihilation†. Nirodha Nirodha says that â€Å"It is the remainderless, total annihilation of this very craving, the forsaking of it, the breaking loose, fleeing, deliverance from it."† Maggo It says that â€Å"It is the Noble Eightfold Path which consists of right understanding, right thoughts, right speech, right action, right livelihood, right endeavor, right mindfulness, and right concentration† From the study of these four truths, we see that their objective is that people should first understand these four truths, and then practically apply the knowledge from their understandings to their lives in order to gain happiness. Real happiness lies within oneself. These four truths can be experienced by people in daily life. Thus Buddhism can be considered as a practical philosophy. Buddha also gave the concept of Karma, according to which, a person’s actions in one age decide his state of existence in next stage. ... h delights now here now there; it is the craving for sensual pleasures (Kamatanha), for existence (Bhavatanha)7 and for annihilation (Vibhavatanha)."" Nirodha Nirodha says that "It is the remainderless, total annihilation of this very craving, the forsaking of it, the breaking loose, fleeing, deliverance from it."" Maggo It says that "It is the Noble Eightfold Path which consists of right understanding, right thoughts, right speech, right action, right livelihood, right endeavor, right mindfulness, and right concentration" 1 Bullen Leonard. Philosophy of Buddhism. 2007. V. Jayaram Buddha From the study of these four truths we see that their objective is that people should first understand these four truths, and then practically apply the knowledge from their understandings to their lives in order to gain happiness. Real happiness lies within oneself. These four truths can be experienced by people in daily life. Thus Buddhism can be considered as a practical philosophy. Buddha also gave the concept of Karma, according to which, a person's actions in one age decide his state of existence in next stage. There are different kinds of people in the world. Some of them face difficulties throughout their lives in spite of hard work and some of them achieve everything in spite of their lazy attitude. Some are born with saintly characteristics and others with criminal tendencies. The question arises, why there is such an inequality in world According to Buddhism this variation is due to our own karma, or in other words, due to the result of our own actions. We ourselves are responsible for our own actions and our state of life. Five Orders of Buddhism Buddhism says that there are five orders (Niyamas) which act on the physical and mental

My Personal Story about English Essay Example | Topics and Well Written Essays - 750 words - 105

My Personal Story about English - Essay Example Writing formal English is tough because I have to observe a lot of rules not to mention that I have to organize my thoughts. It is easier if I will just write a paragraph or two because I need not organize it but it is different when I have to write long pages of writing especially those that are required in class.   This one is relatively easier to write because I just have to write from my experience.   But when it gets longer and the topic becomes more difficult, I usually have a hard time writing it especially getting the paper started. There are several in the past where my difficulty in speaking English became a burden or in forming a new friendship with people.   I like to meet and know all sorts of people and if possible to have a new set of friends all the time.   People just interests me.   There was this incident however that my English was still not that good that I had difficulty speaking it.   I was introduced to a new set of friends and I was eager and excited to know them.   But alas, I was not a good conversationalist in English and I lost their interest.   As a result, we did not end up as good friends but only acquaintances.   I felt bad about it because I was really interested to make them my friends, know their hobbies and probably learn it too. There are instances however where my knowledge in English was rewarding.   I may not be an excellent writer or speaker of English but I can competently communicate with the language.   There was this time we were on holiday in South East Asia where most of the people speak in their native tongue.   It is difficult because the place is foreign to me and did not know how to go about because I was new to the place.   Luckily, the locals knew that I am a foreigner and are able to speak and write in English.   So the initial intimidation of going around and not knowing my way was overcome because I could ask around using the English language.   English is truly a universal language because people whom you do not expect to communicate with because of differences in native tongue can be overcome by speaking the English language thereby overcoming the language barrier.  

DELL Case Study Analysis (Marketing) Essay Example | Topics and Well Written Essays - 1000 words

DELL Case Study Analysis (Marketing) - Essay Example At times a key success factor can also be the key vulnerability of a company. In Dells case, it is their over dependency on short term just in time delivery system. All other success factors hinge on this. For example, the low cost, fast delivery, and customer service are all dependent upon the efficiency and smooth functioning of the JIT system. While JIT can be a excellent platform to build competitive advantage, it is dependent upon a host of other business partners involved within the supply chain. Even If one or two suppliers are affected the whole operation of Dell is vulnerable. As only 4 days inventory is held, this risk is further heightened. Another vulnerability of Dell lies in its dependency on its unique business model of reaching customers directly while eliminating the middle links in its distribution chain. While most companies today look in to innovative distribution structures termed as Vertical Marketing Systems which integrate the activities of each link in the distribution chain (Armstrong & Kotler 2000), Dell had chosen to do away completely with the distribution chain. Dell unlike other IT hardware and accessory manufacturers does not depend upon retailers and distributors in taking their product to the customers. With its innovative approach to distribution, the company allows the consumers to log on to the Dell Web site and place orders after they configure their PC’s as per their own specifications. While this unique business model cuts costs and allows for customer responsiveness and interactive marketing communications with the customers, it will be a less effective channel as Dell enters in to unsophisticated markets, which holds future growth potentials. As Dells major US and European markets saturate, the company as other competitors in the industry needs to tap on to emerging markets such as China, India and other developing nations to support its growth. However these markets may still not be very sophisticated

My Personal Story about English Essay Example | Topics and Well Written Essays - 750 words - 105

My Personal Story about English - Essay Example Writing formal English is tough because I have to observe a lot of rules not to mention that I have to organize my thoughts. It is easier if I will just write a paragraph or two because I need not organize it but it is different when I have to write long pages of writing especially those that are required in class.   This one is relatively easier to write because I just have to write from my experience.   But when it gets longer and the topic becomes more difficult, I usually have a hard time writing it especially getting the paper started. There are several in the past where my difficulty in speaking English became a burden or in forming a new friendship with people.   I like to meet and know all sorts of people and if possible to have a new set of friends all the time.   People just interests me.   There was this incident however that my English was still not that good that I had difficulty speaking it.   I was introduced to a new set of friends and I was eager and excited to know them.   But alas, I was not a good conversationalist in English and I lost their interest.   As a result, we did not end up as good friends but only acquaintances.   I felt bad about it because I was really interested to make them my friends, know their hobbies and probably learn it too. There are instances however where my knowledge in English was rewarding.   I may not be an excellent writer or speaker of English but I can competently communicate with the language.   There was this time we were on holiday in South East Asia where most of the people speak in their native tongue.   It is difficult because the place is foreign to me and did not know how to go about because I was new to the place.   Luckily, the locals knew that I am a foreigner and are able to speak and write in English.   So the initial intimidation of going around and not knowing my way was overcome because I could ask around using the English language.   English is truly a universal language because people whom you do not expect to communicate with because of differences in native tongue can be overcome by speaking the English language thereby overcoming the language barrier.  

Airbus A3XX- Developing the World's Largest Commercial Jet (A) Case Study

Airbus A3XX- Developing the World's Largest Commercial Jet (A) - Case Study Example It is evidently clear from the discussion that there was a risk in terms of the upfront investment required for the project and also the uncertainty of demand, made this decision are a critical and daunting one. The response on the earlier orders had been a positive one but the hitch being the fact that initial orders do not imply long-term demand. As it is launch customers are offered hefty initial discounts. The delivery was not to take place before 2006 and there were very airlines that were willing to order more planes 5-6 years in advance. This made it even more difficult for Airbus to decide on the launch if it could not reach its pre-launch target of 50-100 orders. The aviation industry is a very risky one. There is no grey in this industry; it’s either black or white. Every 3-4 years, one has to put the business at a stake and if a launch failed then the consequences can be as drastic as culminating into an exit demand from the industry. In recent years, companies like Glen Martin, General Dynamics, and Lockheed have met the same fate. Irrespective of the risks lying ahead of it, Airbus went ahead with the launch. Now the deal would be to rectify and work upon the issues on the way and ensure that the launch is successful. Boeing which would be one of its biggest competitors would also have something ready up its sleeves to counter the launch. This threat can also be not denied. They would bring down the prices of their 747s or come up with a new version of 747. Given, their status in the industry, Airbus will have to counter the threat received from their end. Even the projected costs of the venture have been stipulated to be 13 billion dollars; some critics believe that it would shoot up to 15 billion dollars. The financial success of Airbus thus depends on their ability to drive enough early sales home through the learning curve effect.

The Effect of the Internet on Music Essay Example for Free

The Effect of the Internet on Music Essay There has been much ink spilled over the supposed death of the music industry. While this worry may be a bit premature, the most pressing economic issue facing the music industry today is the slow but steady push toward a complete restructuring of itself. Downloadable music, in the form of mp3s, has revolutionized the way we think about and consume music. With the increased prominence of independent labels, file-sharing websites, and innovative artists who are creating their own methods for releasing albums, the traditional record business is becoming increasingly irrelevant. In economic terms, this has so far meant declining record sales among the major labels, a recent spate of firings, and the loss of big artists, who are moving either to concert promoters like LiveNation, independent labels, or their own recording studios. Over the past year, artists from Radiohead to Coldplay to Trent Reznor have released songs and entire albums for free over the internet. They have almost universally been a success, although some less well-known artists, as well as various industry insiders, have argued against this being a workable model. Michael Laskow, CEO of an independent AR company, TAXI, argued that Radiohead allowing consumers to pay what they choose for a digital album is not indicative of the future of the music industry: While the band, its fans and artists alike are celebrating what looks like a success for Radioheads bold move in releasing their new album using the ‘pay what youd like’ model, I think everybody has overlooked one very important aspect of this, and it doesnt bode well for the future of the music industry. Radiohead has been bankrolled by their former label for the last 15 years. Theyve built a fan base in the millions with their label, and now theyre able to cash in on that fan base with none of the income or profit going to the label this time around. The question is: how will new artists be able to use this model in the future if they havent built a fan base in the millions in the years leading up to the release of their album under the pay what youd like model (Lipsman)? The worry that new artists won’t be able to give their music away for free (disregarding the 40% or so of people who voluntarily paid from one to twenty dollars for the album), is a valid one. However, Laskow seems to view major labels as the only answer to new artists looking for an audience and a way to make a living with their music. On the contrary, the rising prominence of independent labels over the past several years has proven that it doesn’t take millions of dollars to create an album and promote it. Labels like Kill Rock Stars, Bloodshot Records, and Rounder Records have all seen their profits rise over the past few years, at the same time that major labels have seen their sales dip or stagnate. Cameron Strang, founder of New West Records, points out the economic advantages in not having the huge overhead of major labels. Thats the difference between us and them. Artists on our label who sell 200,000 copies make a very good living (Margolis). Artists like Aimee Mann and Michelle Shocked are releasing albums on their own. (Dare I even mention Ani Difranco? ) Clearly, independent labels as well as individual artists are capable of doing the work that major record labels have been doing for years. With the advent of webcasting and podcasting, along with XM and Sirius radio networks, traditional radio doesn’t have the same hold on the music buying public’s imagination that it once did. Increasingly, new artists are discovered by getting their songs played on television shows like The Hills and Grey’s Anatomy. The music industry is attempting to do to webcasting what it did to Napster, which is to essentially strangle it through lawsuits in the hopes of being able to squeeze money out of the webcasters. Instead of viewing web-based radio as a unique promotional opportunity, the mainstream music industry only sees profits being taken out of its pocket. At the same time, artists, like the ones discussed above, are realizing which way the wind is blowing. Digital Music News publisher Paul Resnikoff notes that: A growing number of superstars are or soon will be grazing in post-major pastures. And for them, the bigger basket touring, merchandising, publishing, relevance, and even album sales remains more important than a paid download, protected or otherwise (Resnikoff). These additional streams of revenue are often the more lucrative for musicians than album sales. It only makes sense that artists would look at digital music, including webcasting and file-sharing, as ways to gain fans that will purchase concert tickets and merchandise. File-sharing continues almost unabated, although the popularity of iTunes despite much of its music being DRM-protected has provided a model for money-making in the digital era. Despite iTunes and growing copyright protection on albums and songs, paid downloads account for, at most, five percent of all music downloads. Even ringtones, which are currently a substantial slice of the digital revenue pie, aren’t turning a profit. Labels are considering raising prices, but it is unknown whether customers will pay for them, or that a single line of revenue will pull record labels through financially. Warner Music Group and EMI have had massive layoffs over the past year in an effort to restructure and shore up the companies financially. Minimum Advertised Pricing, or MAP, is the setting of minimum prices by manufacturers for retailers. In the case of the music industry, the major labels colluded in the mid-1990’s to require discount retailers to advertise higher prices or give up joint marketing funding, which could mean giving up millions of dollars (Menn 152). The history of MAP, at least in the music industry, appeared to end on September 30, 2002, when the five major labels settled a lawsuit brought by 30 states in an effort to end the practice (Menn 152). In 2000, the Federal Trade Commission investigated price-fixing by major labels and the majors signed a consent decree getting rid of minimum-advertised pricing policies (Christman, Pricing). The FTC has estimated the cost to consumers in the years when MAP was practiced to be at half a billion dollars (Menn 152). For nearly the past 100 years, since the passage of the Sherman Act, mandatory pricing restraints were deemed to violate antitrust laws. It wasn’t until the summer of 2007, when the Supreme Court overturned the law against setting mandatory minimum pricing in a case brought by an accessories manufacturer, that the practice was made legal (Christman, Why Labels). This has potentially enormous ramifications for the music industry and music fans alike; it remains to be seen whether those ramifications will be for the benefit of music fans or to their detriment. The music industry has argued that requiring discounters to sell CDs at the same price as specialty stores will lead to greater selection and a halt to the bleeding that independent record stores have experienced (Christman, Why Labels). At the same time, music fans have bemoaned the high price of CDs for years, and raising prices unilaterally could drive down music sales even further. The major label system, which requires millions of dollars in overhead to promote certain artists, is at least partly to blame for the rising prices. At Salon. com Scott Rosenberg argues that: Even more than the artists, the victims of this system are music fans who end up paying exorbitant prices for CDs to fund bloated recording-company marketing budgets. That money gets spent manufacturing a handful of superstars, leaving serious music lovers to fend for themselves in ferreting out unusual new music that the business considers too niche-y to be worth promoting (para. 6). In this view, the pricing system set by the majors is inherently unfair to both fans and the majority of artists who aren’t â€Å"superstars†. Rather than setting minimum pricing restraints for discount stores, major labels could lower wholesale prices to ensure that independent record stores could stay in business. This would largely be to the labels’ benefit; over the last five years, their reliance on big-name stars to sell huge amounts of records has been a losing proposition. Titles from unknown artists and back catalogs are often nowhere to be seen at discount stores. The personal service and deep selection at independent stores creates an opportunity to sell these types of titles. The $9. 99 price point set by discount stores and iTunes has surely contributed to declining album sales, but the burden of maintaining that price point has been shouldered almost entirely by independent music retailers, while the major labels continue to raise list prices (Christman, Why Labels). Majors are contributing to declining sales while preserving their own profit margins. Mike Dreese, quoted in Billboard, also points a finger at discount stores that lure customers in with low CD prices: Wal-Mart, Target and Best Buy have succeeded in almost destroying the specialty-music account base and are now setting the rules for the industry. If minimum pricing were implemented, it would keep the discounters from finishing the job. Those discounters, which have limited selection, have such dominance that labels now spend more money on supporting low retail prices and much less advertising the availability of the product (Christman, Why Labels). The tide of public opinion seems to be turning toward the use of minimum pricing restraints. When price-fixing in the music industry was first being investigated, still-new stores like Best Buy maintained a relatively deep catalog of music, knowing that it was competing directly with independent music stores. Now that discounters have succeeded in putting many small stores out of business, their catalog consists largely of the Billboard Top 100. What seemed revolutionary in 2000 – music priced at a reasonable amount over cost – has had unforeseen consequences. The prominence of discount stores in the music industry has contributed to the lack of choice and variety so unappealing to music fans. Wal-mart has surpassed Apple to become the number one music retailer in this country. The driving down of CD price points to $9. 99 has been salutary for customers, but may have longer-lasting effects by eliminating space for new artists and broad selection. Furthermore, even the $9. 99 price point has been artificially constructed by discounters hoping to entice customers and labels hoping to propel all-important first week sales (Deutsch). Noting the possible risks of this new low price point in Billboard, Ed Christman points out that â€Å"After all, at $9.99 the U. S. music industry currently has the lowest CD pricing at retail since the format was introduced here in 1983. † It is unclear whether imposing minimum advertised pricing at this point would even make a difference in terms of independent music stores. Many have already closed, and those that have stayed open have diversified or moved to a location free of big box discounters. The music industry may impose mandatory minimum pricing again, but low CD price points and the decreasing number of brick and mortar music stores will likely continue unabated. The internet has changed the distribution of music in ways we are only just beginning to imagine. The old models – for promotion, distribution, and sales – aren’t working in the age of the mp3. Clearly, continuing to hold on to past business models and attempting to fit new trends and technology into it has not worked out well for the major labels. A fear of competition and new technology accounts for the manner in which the industry attempted to deal with Napster. Afraid of lost profits, music industry executives from the top five record labels chose to batten down the hatches and lock away any possibility of negotiation with Napster. According to Joseph Menn, the author of All the Rave: the Rise and Fall of Shawn Manning’s Napster, this is partially due to a generational divide within the individual labels. Top-level executives are often â€Å"old-school leaders who turn purple with rage at the very idea of an MP3† (Menn 153), while younger up-and-comers saw the possibilities of this new technology. With the advent of webcasting and podcasting, along with XM and Sirius radio networks, traditional radio doesn’t have the same hold on the music buying public’s imagination that it once did. Increasingly, new artists are discovered by getting their songs played on television shows like The Hills and Grey’s Anatomy. The music industry is attempting to do to webcasting what it did to Napster, which is to essentially strangle it through lawsuits in the hopes of being able to squeeze money out of the webcasters. Instead of viewing web-based radio as a unique promotional opportunity, the mainstream music industry only sees profits being taken out of its pocket. At the same time artists are realizing which way the wind is blowing. Touring, merchandising, and publishing remain large chunks of income for both individual artists and music labels. The traditional record industry has become increasingly outdated and unable to keep pace with the digitized, connected world of the 21st century. Music downloading is hugely popular around the world, but particularly in places as diverse as Ghana and Brazil, where poverty is widespread and cheap mp3s have spread like wildfire. Maintaining the expensive overhead of a bloated recording industry through high price points for CDs means that music is only available to a certain class of consumer. Peer-to-peer file sharing has made music more widely available, and helped raise the profile of independent and unsigned bands. Clearly these benefits have to be taken into account while also denouncing outright piracy as clearly illegal. It is up to the music industry to come up with easy to use, innovative ways to incorporate the changes mp3s have made to their business, with successful ventures like iTunes leading the way. The specter of music piracy and lost profits have led the music industry into a premature grave, when they should be welcoming the opportunity to promote music in new ways and to new communities. WORKS CITED Christman, Ed. â€Å"Pricing Perils for Record Labels. † Billboard 26 May 2007. Lexis-Nexis. 15 May 2008 http://www. lexisnexis. com. Christman, Ed. â€Å"Why Labels Should Set Minimum Price Restraints. † Billboard 1 September 2007. Lexis-Nexis. 15 May 2008 http://www. lexisnexis. com. Deutsch, Claudia. â€Å"Suit Settled Over Pricing of Music CDs at Three Music Chains. † New York Times: NYtimes. com. 1 October 2002. 11 May 2008 http://query. nytimes. com/gst/ fullpage. html? res=9C05E5D91238F932A35753C1A9649C8B63.