Ogayco, Nessie A. Pan, Wellian Fritz G. Tan, Charmyn
July 3, 2014 Prelim Assignment # 1
TTh / 1:00 2:30
BUSINESS STRATEGIES 1. Strategic Alliances Last month, Puregold, entered a partnership between Japans convenience store giant Lawson, a move that will heat up competition in the convenience store sector in the Philippines. This venture would also be beneficial for both companies for the expected ASEAN integration of companies. Puregold-Lawson will partner up to create a convenience store in which Puregold owns 70% of it and the remaining 30% will be owned by Lawson. This will see the rise of Puregold in the convenience store sector and the entry of Lawson in the Philippine market. This alliance between Puregold and Lawson is beneficial for both companies as it grabs the opportunity to enter the market along with the expect ASEAN integration. Puregold will help Lawson in its entry into the Philippine market while Lawson will contribute its business knowledge in running a convenience store. This partnership would then lead to put up more branches here in the Philippines and to create a stiff competition among the established convenience stores such as 7Eleven and Mini Stop. Although they would invest more in this kind alliance due to its bigger scope, but in the long run, we believe that since both companies can offer their specific expertise in their field, it will help them make this alliance successful. 2. Diversification of goods and services. Tech giant Google has formally entered into the music streaming space via their purchase of a start-up company Songza. Although Google has already Youtube in the music/video platform, this is the first time that they are diversifying in music streaming service. As this service becomes popular today with the advent of Spotify and such, this would also shakeup the competition with Apple and Amazon. We all know that Google has already expanded and diversified into different platforms and technology services, however this is their first venture in the music streaming platform service. Google has seen the rise of use in this kind of service thus they would like to also be part of this and profit from it. This would allow Googles tech resources to be expanded in this kind of platform with the help of Songzas innovative platform with already 2 million users for just 6 months. As this platform becomes increasingly widespread, this diversification of Google will be tested as stable companies such as Spotify that is already successful in this platform. Lastly, Google would also face competition as Apple also bought Beats along with its Beats Music Service and Amazons Prime Music.
3. Find and retain the best people.
Twitter has just recently announced another shake-up in their boardroom as they replaced their chief finance officer with the person who helped them in their IPO launch last year. Antony Noto, who formerly worked for Goldman Sachs replaces Mike Gupta as the microblogging sites new CFO, although Mr. Gupta would still stay at Twitter as its senior vice president for strategic investment. These changes were made after Twitter had troubles after being a public company and with investors being sceptical about Twitters ability to transform itself into widespread adaptation. In this case, Twitter used this strategy of finding the best people in order for the company to achieve its goals. The company sees that they need someone who is capable of making improvements and achieving new things for them. In addition, it needs new people who can deliver fresh ideas and work on those ideas since the company is headed towards a different perspective after launching its IPO last year. The person they hired was someone familiar to the company and someone who has already contributed previously, although not in an official way. So this person can really help the company in pursuing these new goals because above all else, having an individual who is extremely capable and knowledgeable is still one of the best business strategies. SOURCES. 1.) http://www.philstar.com/business/2014/06/14/1334455/puregold-ties-lawson-japan 2.) http://www.forbes.com/sites/zackomalleygreenburg/2014/07/01/google-buys-songza-as-streamingarms-race-heats-up/ 3.) http://online.wsj.com/articles/twitter-names-noto-as-finance-chief-1404221891