In several class discussions we've mentioned the impact that the new Mercedes Benz Stadium will have on not only the AUC community but the entire West End/Vine City area. The real estate effect that the 1.2 billion dollar stadium will have will not be instant but the transformation of the entire community is prevalant in ways other than money.
The Falcons have hired the technology company Daktronics to build a 360-degree, 63,000-square-foot HD video board that will be positioned at the center of the stadium giving every fan a perfect view of the action. Also, Mercedes-Benz Stadium have partnered with IBM to be the official systems integrator for the venue which will feature a Passive Optical Network (PON). The PON will be the first of its kind to ever be used in an NFL stadium as it will drastically reduce the amount of power and cooling required for technology throughout the stadium and will help contribute of the overall sustainability aspect of the building.
The stadium is scheduled to open July 30, 2017 and with each countdown day there is more of a presence of the Atlanta Falcons (and Atlanta United soccer) in a community that they have no roots in. Gentrification, overpriced real estate, and misused infrastructure are on the way in the West End and while there may be citywide excitement there are issues that need to be addressed. The AUC and the leaders of these institutions have a social responsibility to protect the residents and withhold the history of this area.
The Atlanta Falcons hired Brookings, S.D.-based Daktronics (NASDAQ: DAKT) to build a first-of-its-kind circular LED video display for the team's new $1.4 billion stadium. The 63,800-square-foot,non-traditional LED video display will be more than five stories high and three times as large as the current largest single display board in the NFL.
Millennials are known for many things such as being civic-oriented, conscious, and the largest, most diverse generation in history. But analysts say this generation is missing one thing, their willingness to take risks.
To some, this is seen as a problem. Studies show that our youth puts us in the best position to take risks but we look for security instead. Economically, millennials struggle and cannot afford to risk it all on uncertainty. However, risk avoidance and cautiousness does not help stimulate the economy, innovate technology, or produce many entrepreneurs.
According to a survey by Babson College, 41% of 25 to 34 year olds state that their biggest roadblock to starting a business is the "fear of failure." In today's business world, most would say to "embrace failure" rather than seeing it as a fear but not to millennials. Studies show we prefer to get it right the first time rather than stumbling and starting again.
Check out Barbara Corcoran's speech at Entrepreneur's Growth conference. Although it's fairly long, I encourage you to choose at random five minutes to watch and you'll want to watch more. Her words are both inspirational and motivational and she encourages people to put themselves into situations where they might fail and then learn how to bounce back.
During a past class session we talked about the five generic competitive strategies and economies of scale. In which I found an article on Forbes.com discussing why successful companies focus on competitive advantage and not just making a profit. In the article the writer talks about, "A company's profits are the result of its competitive advantages. Therefore, successful investment managers focus on whether a company's competitive advantages will enable it to defend and grow profits."
An example of a company that has come into the industry and took over is Uber. Uber came into play six years ago and has already dominated the industry and over-powered the yellow taxicab company. One competitive advantage they have over the taxicab is everything is run on an app. With having an app it gives plenty people of access to it because of how big technology has become. Mostly everyone has a smartphone where they link up their accounts to their phones such as social media, debit cards, and email to be able to easy access to communicate throughout the day. Another strategy they have used is the low-cost provider strategy that allows a company to sell at a lower price than your competitors to attract customers. This is known as a price advantage. Companies using this strategy will typically earn low margins but achieve high sales volumes. Low-cost providers aim their products at the broad market, making them appeal to as many consumers as possible to achieve high sales volume.
When focusing on competitive advantage as a company for every dollar you make a percentage of that should be reinvested back into your company for marketing, developing new products, or improving existing products. It's about having your brand stand out compare to your competitor. Once your brand and services can out-stand competitors you can expand on that competitive advantage.
Contrary to popular opinion, a company's profits are not the result of the products and services it sells. And when evaluating whether to invest, successful investors don't only focus on a company's profits. I know what you're thinking: "He has it backward - corporate profits do come from selling products and services, and successful investors only focus on a company's profits."
a) Scope of Operations
This refers to the range of activities the firm performs internally, the breath and depth of its products and services offered to the extent of its geographic market presence and its mix of businesses.
b) Vertical and Horizontal Integration Strategy
When a company wants to grow, it has two options: expand its current business or go into business with other companies through acquisition or merger. If it chooses the acquisition option, it can do so in a way that strategically enhances its current operations through vertical or horizontal integration.
A horizontal integration consists of companies that acquire a similar company in the same industry,
while a vertical integration consists of companies that acquire a company that operates either before or after the acquiring company in the production process.
Vertical
Horizontal
Problems
c) Outsourcing
Outsourcing is a practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally. Outsourcing is an effective cost-saving strategy when used properly. It is sometimes more affordable to purchase a good from companies with than it is to produce the good internally.
d) Alliances & Partnerships
A partnership company is formed when the parties involved agree to share the business’s profits or losses proportionately. This business is a separate entity, jointly owned and operated by the people in the partnership. An alliance is formed when businesses agree to collaborate without giving up their independent status. A strategic alliance (also see strategic partnership) is an agreement between two or more parties to pursue a set of agreed upon objectives needed while remaining independent organizations. A strategic alliance will usually fall short of a legal partnership entity, agency, or corporate affiliate relationship.
A business has a strategy that can not be static. It must continually be adjusted. This week we want to discuss strategies to handle competition.
Today companies and constantly under attack as all industries are changing due to the rapid change in technology. Even giants like Walmart are under attack by amazon and on-line retailers.
A company can go on offense or defense to create opportunities and/or protect their markets and competitive advantage.
OFFENSIVE VS DEFENSIVE STRATEGIES
Offensive and defensive strategies have distinct benefits, depending on the status of your business and how successful you are in the market. An offensive strategy provides a means for business to hit the market strong and establish a presence, whereas a defensive strategy can help keep you at the top of your industry. Each type of marketing requires careful planning and resource allocation to reach the largest number of consumers.
Offensive Marketing Definition
An offensive marketing strategy seeks to attack the market by targeting the weaknesses of the competition and emphasizing the company's strengths in comparison. Offensive marketing does not seek to challenge an industry leader's strengths since that would only play to the leader's defensive marketing capabilities. This strategy attacks the industry leader where the company is at its most vulnerable. For example, a company using an offensive marketing strategy may seek to target an established industry leader's shaky product safety record by emphasizing the safety of its own products.
Offensive Marketing Techniques
The marketing attack from an offensive-minded company must be as focused as possible. A focused attack hammers home the company's product message to consumers and casts doubt on the industry leader's weakest areas. An attack that is too broad risks its message losing focus with consumers. This may also mean a company using an attacking strategy will introduce only one product at first to clearly establish it as a challenger to the industry leader's own product.
Reactionary Marketing Strategy
A defensive marketing strategy is largely reactive to the competition or perceived occurrences in the market. A defensive strategy seeks to counter product claims made by the competition or to stem the tide of a perceived competitor advantage. For example, a company that highlights the effectiveness of its products in the wake of competitor claims of product inferiority is using a defensive marketing strategy. A company may also seek to introduce products into the market that are better than its existing offerings as part of a defensive marketing strategy.
Defensive Marketing Advantages
For an established company with a wide customer base, defensive marketing is a useful strategy. The company doesn't have to actively work to generate customer interest in its products and can simply reinforce its product messages with consumers. A well-built reputation through quality products makes it difficult for a new competitor to enter the market and attack the established company's customer base. The established company simply uses its defensive marketing to reinforce customer confidence in its products and swat the newcomer away.
OFFENSIVE ATTACK
Offensive business strategies involve taking proactive, often aggressive action in the market. This action can be focused directly at competitors or aimed at securing market share regardless of the existing competition.
Direct Competition
A classic example of an offensive business strategy is direct, head-to-head competition. This type of direct competition could take the form of selling a product similar to a competitor's at a lower price or highlighting quality differences between one product and another. This type of offensive strategy can lead to destructive price wars that ultimately harm both organizations, however.
Aggressive Marketing
Direct competition strategies often involve an element of aggressive marketing. For example, one competitor might openly point out flaws in another competitor's product or service as a way to dissuade customers from doing business with the competitor. Such advertisements could be done with an objective price comparison or a more aggressive form of derision. Companies must be careful when using overly aggressive advertisements directed at competitors, as some customers may find these advertisements to be in poor taste.
Niche Market
Not all offensive strategies are directly aimed at a specific competitor. Some companies aggressively seek out new niches in the market that have not been tapped by the existing companies. For example, if the market for automobiles consisted primarily of large muscle cars, a company with an aggressive approach could offer a smaller, more fuel-efficient model to establish a new market. Similarly, a company’s offensive strategy may target a new geographic market not presently being served with a particular type of product.
Innovation
Similar to establishing a new niche, many companies aggressively seek out new innovations to market to consumers. Innovation is not strictly limited to inventing a new product or a new process for creating a product. Innovation can also come in the form of inventive ways to run an existing business model more efficiently or more profitably.
DEFENSIVE ATTACK
Competition is inevitable in the business world. The threat of competitors swooping in to steal your customers or your share of the market can sometimes seem overwhelming for a small-business owner. There are steps you can take, however, to defend your products and your share of the market from competition.
Understanding Strategy
Defensive strategies are management tools that can be used to fend off an attack from a potential competitor. Think of it as a battleground: You have to protect your share of the market in order to keep your customers happy and your profits stable. Defending your business strategically is about knowing the market you're best equipped to operate in and about knowing when to widen your appeal to enter into new markets. In contrast to offensive strategies -- which are aimed to attack your market competition -- defensive strategies are about holding onto what you have and about using your competitive advantage to keep competitors at bay.
Approaches to Defensive Strategy
There are two approaches to defensive strategy in strategic management. The first approach is aimed at blocking competitors who are attempting to take over part of your business's market share. Cutting the price of your products, adding incentives or discounts to encourage customers to buy from you or increasing your advertising and marketing campaigns are the best common ways of going about this. The second approach is more passive. Here, you announce new product innovations, plan a company expansion by opening a new chain or reconnect with old customers to encourage them to buy from you. This is still a method to prevent the competition from taking away your customers and earning, but it is done in a more relaxed and less-aggressive manner, whereas the first approach is active and direct.
Advantages of Defensive Strategy
Employing a defensive strategy in your business can have many perceived and real benefits. First, you are increasing your marketing and advertising, which can be an effective way of getting both old and new customers through the door. Second, defensive strategies are typically less risk-laden than offensive strategies. You have the option to take passive measures to ensure your share of the market and you don't have to necessarily feel threatened at every turn. The third benefit of defensive strategy is that you are working to enhance the value of your products or services. By emphasizing the benefits of your brand, you are simultaneously devaluing the value of your competitors. This can be an effective long-term strategy in securing a niche market for your products and services.
Disadvantages to Defensive Strategy
The biggest disadvantage to defensive strategy comes when a business does not understand its target market. All products and services should be aimed at particular demographics of the broader marketplace. If you sell children's bicycles, for instance, aim your marketing at the demographic most likely to buy from you: probably young to middle-aged adults with children. It wouldn't make sense to target your children's bicycles to older adults without children or to teenagers who are no longer interested in riding children's sized bikes. The key is to know your share of the market and to work hard to hold onto that piece of the pie. Along with this major disadvantage comes the risk that you may rest on your laurels when it comes to innovation and product development. Successful businesses also keep their eyes open for opportunities to engage in new markets, to sell cutting-edge products and to reach new customers. Thus any defensive strategy you employ should be balanced with a long-term strategy for growing your business.
What happens when you do not develop a strategy against your competition?
In class there have been many discussions about how technology will affect us in the future. One of the most interesting topics to me was about wearable technology. The idea of one day being able to wear technology is closer then we think. Technology is advancing in so many ways that it will literally become a part of human beings. Of course, there will be many benefits to wearing technology. Some include, the ability to collect biometric data through implantation. You can track your heart rate, steps taken, calories burned and so much more. There will also soon be a time where you can show information on your skin using LEDs.
In the medical field one way wearable technology will be used is by inserting tiny implants into the body. The implants are controlled by a remote that can send radio signals. The signals can release medicine into the body without the use of a needle. The implant can also be used to monitor your health. The data could give doctors a better insight into lives of there patients. It could be used to see if a patient is taking their medication properly or keeping up with their physical therapy. It can also track all of your vitals and even give early warnings to potential health risks.
The benefits of wearable technology will soon be endless. But even with all the benefits of wearable technology I'm still apprehensive about being able to wear technology literally. Just the idea of implantation seems odd to me. Why do I need to see it in my arm when I can just see it on my phone? This may be a more traditional way of looking at things. And I might be in a small group to think this way but I'm not interested in implantation personally. Even with a full understanding of the benefits it could have.
What Is the Chief Difference Between a Low-Cost Provider Strategy and a Focused Low-Cost Strategy? Two of the five strategies.
Being a low-cost provider is a basic business strategy. It is the straightforward strategy of selling at a lower price than your competitors. But even such a basic strategy comes in two different types -- the low-cost-provider strategy and the focus low-cost strategy. These two strategies are appropriate for differently sized businesses.
Low-Cost Provider Strategy
The objective of a company using a low-cost provider strategy is to sell its products at the lowest possible price to attract customers. This is known as a price advantage. Companies using this strategy will typically earn low margins but achieve high sales volumes. Low-cost providers aim their products at the broad market, making them appeal to as many consumers as possible to achieve high sales volume.
Focused Low-Cost
The focused low-cost strategy also aims to create a price advantage for the company. Where the focused low-cost strategy differs from the low-cost provider strategy is in the company's focus. A company using this strategy focuses on a specific market niche, offering products to a narrow market segment instead of a broad one. The company then aims to be the cheapest supplier in this niche but not necessarily in the overall market. Which to Use
The low-cost provider strategy is typically only used by large corporations that have theeconomies of scale to produce or purchase goods cheaply. Small businesses typically cannot achieve the necessary economies of scale and therefore cannot use the low-cost provider strategy. The focused low-cost strategy is better suited to small businesses, because small businesses with limited resources can focus their resources on a narrow market segment.
Briefly discussed in class, gratification is the emotional reaction of happiness to fulfill a desired goal. Furthermore, we classified the two types of gratification: instant and delayed. Should you get what you want now and live a poor lifestyle? Should you wait and work hard to live a wealthy lifestyle? Is it possible to practice both delayed and instant gratification to live the lifestyle you desire? What is neutral gratification?
I believe I practice both instant and delayed gratification, which I call "neutral gratification". Sometimes I buy/get what I want now and there are other times I wait. When choosing between the two, I consider if the time and value of my instant gratification is supplemental to my delayed gratification. Time is very valuable and there are certain things I value more than others. Do I have enough time to wait?
What if I choose to buy this product today and something ten times better comes along? For me, education is of high value, so I am willing to practice delayed gratification to obtain the degree and wealthy lifestyle I desire. On the other hand, I practice instant gratification participating in activities and organizations while I am in college.
My instant gratification of joining organizations associated with my desired goals, is supplemental to my delayed gratification of obtaining my degree, but doesn't alter my lifestyle. I believe everyone has a different approach to fulfilling their wants and needs due to time and value. You can see the use of delayed and instant gratification in many ways.
The Marshmellow Test further shows this controversial topic in action!
Wednesday February 15, 2017 in class we watched Professor Sistrunk on his debut on the well known show, Deal or No Deal. We have all been glued to the television when things got intense during the gut wrenching seconds a guest on a game show has to become $100,000 richer or a sore loser! Like many Americans the 6 season show made you think you were about the have a heart attack but you just couldn't look away! After watching our professor I thought it would be cool to find some things out about the show and to look up some facts about the show!
At the beginning of Deal or No Deal, the contestant is presented with 26 suitcase. As talked about in class, accepting a “deal” for less than the mean would generally be regarded as a gutless or a weak decision. However, late in the game, if a savvy contestant were to wrangle an amount out of the banker that is greater than the mean, then he or she should definitely take it.
Fun facts include:
over the 6 seasons 58,000 cases were open,
over 30 million dollars in total has been won by contestants,
The movie Get Out is very controversial horror film, filled with many messages hidden within its satirical elements. From talking to my peers and reading different reviews, the movie has been interpreted in many different ways. After seeing the movie and discussing it with my friends, I have my own perspective about the different meanings within the movie. One aspect of the movie was relevant to an early discussion we had in class about the future of technology, and what life will be like years from now. Dr. Sistrumk informed us about the scientist Ray Kurzweil, who predicts that there will be immortality by 2045. In the youtube video, Ray Kurzweil discusses his predictions about radical life extension and the future of physical immortality. He states that "We'll be routinely able to change our bodies very quickly, as well as our environments in virtual reality, but it will feel very real. We'll ultimately be able to do that with real reality too." I made a connection between this idea and the movie, when the Father of the white family was transferring parts of the african-americans brain into members of his family and friends. For example, the African-american house-keeper was grandma and the grounds-keeper was grandpa. The white family was preserving the life of their family members by replacing their brains with African-american people. In my opinion this is very similar to the type of immortality that Scientist Ray Kurzweil speaks of. Another interpretation of this scene was the notion that it was used to expose the truth about the preservation of African-Americans organs.
It is no secret that Millennials have shaken up the world in all aspects. We dance to our own beat, go against mostly everything previous generations have taught us and do all things on a World Wide scale. We are the Insta generation of Master Blenders, who have perfected the craft of balancing work and play together.
Unlike the X,Y and Z generations before us, we have redefined what we define as our success. We not only want to have that up-ward moving career but also, that booming social life. Because of this Millennials have blurred those lines between what is consider social and professional. Many things that were once informal in a professional setting, like calling your superior by their first name, is now insisted upon. Professional suite and tie, has become plain jeans and a blazer. The standard corporate offices looks a lot different than my grandmother remembers.
Success is also, no longer defined by how many figures you have in your account, its also defined by the amount of followers you have on Instagram. Or the amount of friends on your Facebook page. Social success also weights into the total success of the person for us millennials.
100k like on "the gram" + 100k in the bank= #Winning at life; is the formula for success for Millennials.
In the words of Keys to Success Guru himself, Dj Khaled, "The key is to make" , by your own definition.
It is exciting to witness the development of technology and fashion combined as one. Technology is steadily turning the entire fashion industry around. Though the Apple Watch, and Google Glass get all of the rage, the craze goes way beyond this point. Fashion designers are becoming more innovative; creating accessories, apparel and fitness wear that can do it all from monitoring your heart rate to playing music.
Everyone love a nice sneaker, but hate the reality of having to tie their shoelace every minute, so what better idea than a self-tightening lace. Nike is obviously moving with time by creating the HyperAdapt 1.0 shoe with a self-tightening lace. The shoe has a pressure sensor that triggers to automatically tighten your laces whenever they come unloose. When the battery is low, there are LED lights presented on the soles that will notify wearers how much battery life they have available. When charged, the battery last up to two weeks.
Personally, I think the idea of a self-tightening lace will only add to our lazy habits. Also, for the price of $720, I expect the shoe to have way more innovative features than to only tighten up my shoelace for me. Nike's HyperAdapt 1.0 is a barrier for many people because not many can afford a shoe at such a high price. I'm certain that self-tightening shoes will be as big as self-driving cars in the future.
After a company completes their SWOT analysis and/or Porter's 5 Forces analysis, they need to develop an action plan based on the analysis.
This week we will discuss how a company develops a strategy to combat competitive forces.
In the SWOT analysis, the competition can show up in any of the four sections:
Success
Weakness
Opportunity
Threat
In Porter's 5 Forces analysis, the competition can show up in:
Rivalry
Substitutes
New Entries
The Five Generic Strategies:
Low-Cost Provider Strategy - Broad set of customers with lower overall costs.
Broad Differentiation Strategy - Broad set of customers with a customized product/service
Focused Low-Cost Strategy - Narrow set of buyer segment(s) (niche) with lower cost product/service
Focused Differentiation Strategy - Narrow set of buyer segment(s) with customized product/service
Best Cost Provider Strategy - Provide best value - Best price for the product or service attributes compared to competitors
1) LOW COST PROVIDER:
Works best when:
Price Competition is strong
Product Identical
Few ways to achieve differentiation
Buyers can easily switch
Few large volume buyers
New Entries use lower intro prices to grab market share
Problems:
Lower prices and profits
Too fixated on cost
Reduced cost approaches can be copied by competition
2) BROAD DIFFERENTIATION:
Works best when product/service can become unique.
Input Quality
Marketing/Brand
Employe Skills/Training/Experience
Continuous Quality Improvement
R&D
Product Features
Innovation
Works best:
Buyers are diverse
Many ways to differentiate the product
Few rivals
Technology changes fast
Risks:
Over differentiate so that the quality exceeds he buyer's needs
Premium price too high
Being too timid
3) FOCUSED LOW COST PROVIDER:
Works best when the company has a competitive advantage over its competition within a target market. See video below for discussion on competitive advantage.
4) FOCUSED DIFFERENTIATION PROVIDER:
They create carefully designed products or services to appeal to a unique target Market.
Gucci
Four Season Hotels
BMW
Works When:
Target market is large enough
Leaders choose not too compete
Too costly for others to compete
Too many market segments, so each company can have their own
Risks:
Market so profitable, other enter and lower prices
Customer preferences change over time
Competition find ways to reduce your competitive advantage
5) BEST COST PROVIDER:
Works Best:
Product Differentiation is the norm
Large number of Value customers
Market has both high price and low price competitors
When economy is slow
Risks:
Hard to remain in the middle and provide value as competitors move up and down to grab market share.
In several class discussions we've mentioned the impact that the new Mercedes Benz Stadium will have on not only the AUC community but the entire West End/Vine City area. The real estate effect that the 1.2 billion dollar stadium will have will not be instant but the transformation of the entire community is prevalant in ways other than money. 
