How The Fashion Industry Could Be Affected Negatively

I’ll be using Johnny Cupcakes as an example on how the fashion industry could be affected negatively.

Overall External Sensitivity Risk Score is determined by identifying the most significant external factors and weighting them to represent how significant each sensitivity is to the performance of the industry. Examples of external sensitivities that could effect the fashion industry are exchange rates, interest rates, commodity prices and government regulations. (Fashion design Services in the US – Industry Risk Taking Report, 2009, paragraph 8)

An external factor that will affect Johnny Cupcakes is Seasonal Trends. The company experiences some seasonal trends in the sale of its products. For example, sales in the American region are often stronger than the European region. Social and cultural elements are strong contributing factors.

Another factor will be Inventory Management/Supplies/Materials. The Company's ability to manage its inventory has been enhanced by favorable supply conditions in the industry. The Company's manufacturing process requires a high volume of quality components that are procured from third party suppliers. Reliance on suppliers, as well as industry supply conditions, generally involves several risks, including the possibility of defective parts, shortage of components and reduced control over delivery schedules and increases in component costs.

And the last one, Technological Changes And Product Transitions. The shirt industry is characterized by continuing improvements in fashion and design, which result in frequent introduction of new products, short product life cycles, and continual improvement in product price/design characteristics. Johnny Cupcakes must effectively manage a product transition and incorporate technology that will improve customer service and demand.

Especially in the fashion industry, drugs have always been a big factor with models and just with the industry in general. This generates negativity towards the industry but for the past few years the industry have been fighting against it by promoting a drug free environment. More recent the industry became more involved with global warming. Most fashion shows have been promoting Al Gore’s “The Climate Project”. (Mixing fashion with social responsibility, 2007, paragraph 2)

As for Johnny Cupcakes, since the beginning when he started his company, he promotes a drug, alcohol and smoke free environment. He clearly states on his entire blog and life story how he votes against it and spreads the word through his company. (Johnny Cupcake Story, 2008, paragraph 1)

References:

IBISWORLD. (2009). Fashion Design Services in the US - Industry Risk Rating Report. Retrieved September 7^th, 2011, from Mindbranch. Website: http://www.mindbranch.com/Fashion-Design-Services-R538-26221/

Earle, J. (2008). Johnny Cupcakes Story. Retrieved September 7^th, 2011, from The Story. Website: http://www.johnnycupcakes.com/the_story/

Morra, B. (2007). Mixing fashion with social responsibility. Retrieved September 7^th, 2011 from The Star. Website: http://www.thestar.com/article/179291

TOMS Takes Social Responsibility To The Next Level

Blake Mycoskie is the owner and chief shoe giver (CEO) of Toms Shoes, a shoe company based out of Santa Monica. California. But it’s this company’s message that makes it so unique. For every pair of shoes purchased, Toms gives a pair to a child in need, that’s where the companies slogan comes in play; One For One.

While vacationing in Argentina, back in 2006, Blake volunteered to help a charity hand out basic amenities to the people and specifically shoes. He thought to himself that there must be an easier way to get shoes to these people. So the next day he started thinking what if you bought a pair and with that you can make a small profit and still give a pair back? Thus Toms Shoes was born.

In the first 6 months Toms was active, they gave away 10 000 pairs of shoes to children in need in Argentina. Toms first turned a profit 2008 and to date they’ve given away over 300 000 pairs of shoes. They plan to give out one million pairs of shoes by 2012 (2008. Blake Mycoskie: Sole Ambition).

This unique business model is based on social entrepreneurship. A social entrepreneur is someone who recognizes a social problem and uses entrepreneurial principles to organize, create, and manage a venture to make social change. Whereas a business entrepreneur typically measures performance in profit and return, a social entrepreneur assesses success in terms of the impact he has on society as well as in profit and return (n/d. What is Social Entrepreneurship).

Social Entrepreneurship started back in the 60’s but only started to pick up in the late 1990’s (2008.The Challenge of Social Entrepreneurs). The reasons behind the popularity of social entrepreneurship are many. On the most basic level, there’s something inherently interesting and appealing about entrepreneurs and the stories of why and how they do what they do. People are attracted to social entrepreneurs because these extraordinary people come up with brilliant ideas and against all the odds succeed at creating new products and services that dramatically improve people’s lives.

In modern times, charity means the practice of giving to help those in need who are nor related to the giver. Charities also depend on donations from wherever they can to help give back. This isn’t a guaranteed ticket that they will be able to help someone at all times. With Social Entrepreneurship you are able to sustain the gift of giving.

References:

• Schmidt, David. April 2008. The Challenge of Social Entrepreneurs. Retrieved from Inc. Magazine website on September 7th, 2011. http://www.inc.com/resources/leadership/articles/20080401/dschmidt.html
• Wong, Grace. September 2008. Blake Mycoskie: Sole Ambition. Retrieved from CNN on September 7th, 2011, 2010.
• n/n. n/d. What is Social Entrepreneurship. Retrieved from The New Heroes on September 7th, 2011. Website: http://www.pbs.org/opb/thenewheroes/whatis/

Experts Views on the Value of Business Plans - Blog 2

Toms Shoes has one mindset and that includes “One for One”. When someone buys a pair of TOMS Shoes, a pair is given to a child in need. This business model incorporates social responsibility. There are over 1 Billion people at risk around the world with Podoconiosis (foot disease), and shoes can prevent it (tomsshoes.com/content).

I strive to base my business model to feature similar qualities like those that Blake Mycoskie built into his company. Coming from South Africa I feel it is my duty to give back and help as much as I can and as far as my abilities can take me. My company, Purple Gorilla, aims to use Social Entrepreneurship to further social & environmental goals with the WWF (World Wildlife Fund For Nature) through entertainment.

According to Mr. Donald Trump, creating a structured business plan is planning for success. Solo practitioners are probably the worst offenders of this. Without a plan, it is a plan to fail. It is too easy to become distracted, or find the newest thing to promote. With a business plan, there is a direction and a focus (2009, Ten Donald Trump Business Tips for Business).

The main objective will be to finalize the Purple Gorilla business plan. Once that is in place everything else will follow. After that a website will need to be developed for Purple Gorilla. For the first year all sales will be done via the online store. That will be the time to build credibility for the brand and a following. After that has been completed construction for the official store will commence in the second year of operation.

When an investor reads through the Purple Gorilla business plan, the first thing that will stand out will be the company description. This section will explain exactly how unique and different Purple Gorilla is from any other clothing brand out there. The second thing that will capture the investor’s attention will be the financial section. When any investor is interested in investing in a company, the first thing they want to know is how they will make their money back. With a well-explained company description and financial section, chances of getting an investor will increase dramatically.

References
Schmidt, David. April 2008. The Challenge of Social Entrepreneurs. Retrieved from Inc. Magazine website on August 3rd, 2011. http://www.inc.com/resources/leadership/articles/20080401/dschmidt.html

Wong, Grace. September 2008. Blake Mycoskie: Sole Ambition. Retrieved from CNN on August 3rd, 2011.

n/n. n/d. What is Social Entrepreneurship. Retrieved from The New Heroes on August 3rd, 2011. Website: http://www.pbs.org/opb/thenewheroes/whatis/

Williams, Delores. April 2009. Ten Donald Trump Business Tips for Business. Retrieved from Associated Content on August 3rd, 2011. Website: http://www.associatedcontent.com/article/1634723/ten_donald_trump_business_tips_for.html?cat=3

Experts Views on the Value of Business Plans

When starting a new business in our modern time, it’s important to know how your business is going to be different, stand out from the rest in such a way so that your target market can differentiate you from the competition. This is where an effective business plan comes in play.

Blake Mycoskie is the owner and chief shoe giver (CEO) of Toms Shoes, a shoe company based out of Santa Monica. California. But it’s this company’s message that makes it so unique. For every pair of shoes purchased, Toms gives a pair to a child in need, that’s where the companies slogan comes in play; One For One.
While vacationing in Argentina, back in 2006, Blake volunteered to help a charity hand out basic amenities to the people and specifically shoes. He thought to himself that there must be an easier way to get shoes to these people. So the next day he started thinking what if you bought a pair and with that you can make a small profit and still give a pair back? Thus Toms Shoes was born with a very extraordinary business plan.

In the first 6 months Toms was active, they gave away 10 000 pairs of shoes to children in need in Argentina. Toms first turned a profit 2008 and to date they’ve given away over 1 million pairs of shoes (2008. Blake Mycoskie: Sole Ambition).
This unique business model is based on social entrepreneurship. A social entrepreneur is someone who recognizes a social problem and uses entrepreneurial principles to organize, create, and manage a venture to make social change. Whereas a business entrepreneur typically measures performance in profit and return, a social entrepreneur assesses success in terms of the impact he has on society as well as in profit and return (n/d. What is Social Entrepreneurship).

When you mention the name Donald Trump, everyone immediately thinks billionaire, real estate tycoon, playboy, arrogant and for good reason; he is all of these things. But maybe his arrogance has helped him become the man he is today. Mr. Trump is a business expert and when it comes to business plans he definitely knows his stuff.

According to Mr. Trump, creating a structured business plan is planning for success. Solo practitioners are probably the worst offenders of this. Without a plan, it is a plan to fail. It is too easy to become distracted, or find the newest thing to promote. With a business plan, there is a direction and a focus (2009, Ten Donald Trump Business Tips for Business).

It only takes a small idea and asking yourself how and why to come up with a very unique business plan. Blake’s story proves that even the simplest idea can become a huge success. Mr. Trump on the other hand believes in structure and discipline when it comes to business.

References
Schmidt, David. April 2008. The Challenge of Social Entrepreneurs. Retrieved from Inc. Magazine website on August 3rd, 2011. http://www.inc.com/resources/leadership/articles/20080401/dschmidt.html

Wong, Grace. September 2008. Blake Mycoskie: Sole Ambition. Retrieved from CNN on August 3rd, 2011.

n/n. n/d. What is Social Entrepreneurship. Retrieved from The New Heroes on August 3rd, 2011. Website: http://www.pbs.org/opb/thenewheroes/whatis/

Williams, Delores. April 2009. Ten Donald Trump Business Tips for Business. Retrieved from Associated Content on August 3rd, 2011. Website: http://www.associatedcontent.com/article/1634723/ten_donald_trump_business_tips_for.html?cat=3

Blog Efficiency Survey

Improving Your Business With Social Media

According to Edison Research, more then half of America’s population 12 and older now have a Facebook page and those numbers keep on growing daily. With statistics like that how can your business not afford to have a Facebook page?

Creating a Facebook or Twitter page for a business is easy, a ten-year old can do it now a-days but it's how you use it to improve your business and keep your customers attracted to your business, which is a completely different story.

If used correctly, you can improve your customer following dramatically with social media. One such success story is a young, multi-million dollar entrepreneur John Earl, also known as Johnny Cupcakes. Johnny Cupcakes is a clothing line based out of Boston with a very successful online store and four (4) retail outlets in Boston, Los Angeles and London. John Earl founded the brand in 2001 as a joke. “I make shirts with cupcakes on them”, as Earl would say is the simplest way to explain his multi million dollar business. Johnny Cupcakes offers an interactive website and entertaining stores (Johnny Cupcakes Finds Sweet Success in T-Shirts, 2006). But Johnny didn’t do all of this without the help of social media. Johnny mainly uses two (2) of the most popular social media channels out there to engage and entertain his customers; namely Facebook and Twitter.

Depending on your business, post a sneak peek of an upcoming product. This way you can get feedback from your customer base even before the product is officially launched. Johnny always posts a sneak peek from his new line before it comes out. By doing this; Johnny excites his customer base and gets them talking about the product online which will then spread to their friends who might not have been a Johnny Cupcakes fan till now.

It’s important not to bore your customers with your content. Of course some posts will include what’s happening with your company but it could get old really fast and that might lead to the loss of a follower. Your posts should also include interesting or funny articles/videos you’ve discovered. This will lead to people also finding your social media page entertaining and informative. Johnny makes a point of it to post at least one ‘random’ post on both his Facebook page and Twitter.

Engage your customers with random give-a-ways and competitions via social media. Depending on your business, ask your customers to take a picture of your product in the most random place they can think of. The picture with the most ‘likes’ will win a prize. Contestants will ask their friends to vote for their picture. This way, you the business owner will win too because to vote you have to ‘like’ the page in the first place so not only will you engage your customers in a fun and entertaining way but your page will also get more likes. Johnny is a prime example of this. If Johnny is struggling to sell a certain product he will post a competition similar to the example explained to help improve sales.

For more ways on how to use social media effectively for your business, read the article by Inc. Magazine and take a look at Johnny Cupcakes Facebook page to see a master at work.

Reference

Smith, T. (2006). Johnny Cupcakes finds sweet success in t-shirts. Retrieved June 29^th, 2011, from Weekend Edition. Website: http://www.npr.org/templates/story/story.php?storyId=5618417

Inc. Magazine: http://www.inc.com/articles/2010/01/30-tips-for-using-social-media.html

Huffington Post: http://www.huffingtonpost.com/2011/03/25/facebook-user-statistics-america_n_840524.html

How Johnny Cupcakes Got Big Without The Help Of Traditional Marketing

The fashion industry is as old as the idea of wearing clothes. There was always someone in the village, town or city that made clothes, perhaps fabric too. They offered different sizes, colors and styles. Not much has changed (or has it?). Fashion has always been subject to shifts in "style", and not always been restricted by the necessity of function, unlike other industries. Fashion, as many see it, is an art, a form of expression, and a declaration of self. Over the centuries, fashion has been used to distinguish between cultures, religious beliefs, moral standards, and, sadly, socio-economic status.

One of the most unique fashion industry leaders is a brand called Johnny Cupcakes, and the gag that inspired it all is in the name - given to John Earle (owner) while he was working at a Newbury Comics store in Boston. But before becoming Mr. Cupcake, he was better known as Johnny the Jokester.

Breaking into the fashion industry is not easy. How do you create a name for yourself without billboards or print ads? Most people in the industry will say it’s not possible, but Johnny proved everyone wrong and created a multi-million dollar brand by paying attention to detail and the wonderful word of mouth.

What separates his product from everyone else’s and what makes him a leader in the market is the exclusivity of his products. According to Johnny “People want what no one else has”. His products are limited, exclusive and one of a kind. He made a wise business decision early in his career to stay away from major clothing stores. (Johnny Cupcakes finds sweet success in t-shirts, 2006, paragraph 6-9)

Customers like and appreciate the story behind the brand. Johnny chose quality over quantity. He believed to rather have a strong brand filled with knowledgeable customers who truly enjoy what he created instead of making a quick buck by trying to get his shirts in chain stores.

Johnny Cupcakes builds memorable experiences for his customers through an in-store event, or the packaging and details he puts into everything. Most companies try to cut as many corners as they can, to turn a better profit. He does the exact opposite and pays close attention to all the little things. (What a dude named Johnny Cupcakes can teach you about business, 2009, paragraph 13)

Most of his customers are repeat customers. Every type of person collects, understands, and appreciates the brand: Fashionable people, college kids, artsy kids, thugs, indie rockers, skaters, young adults, sneaker heads, and more.

When Johnny launches a new line of shirts there are normally up to 600 people in line waiting for the store to open, this is when Johnny personally walks down the line talking to customers, asking questions and handing out free cupcakes to everyone. He also has a personal blog on his website (johnnycupcakes.com) that he updates everyday with personal experiences, interesting stories and information on upcoming and current products. (What a dude named Johnny Cupcakes can teach you about business, 2009, paragraph 18-20)

Johnny also makes fun of popular culture and replacing popular icons with cupcakes. For example: Statue of Liberty, instead of holding a torch it holds a cupcake. On the website Johnny gives out his e-mail address where customers can e-mail him directly with questions, ideas or to say thank you for his brand.

(What a dude named Johnny Cupcakes can teach you about business, 2009, paragraph 11)

It's all of these small things put together that made the brand what it is today. By doing his own thing, breaking away from the norm, Johnny gained the attention from a new market that will support him no matter what. And all of this without the help of traditional marketing.

Reference:

Johnny Cupcakes Website: http://www.johnnycupcakes.com/blog/

Davenport, J. (2009). What a dude named Johnny Cupcakes can teach you about business. Retrieved June 29^th, 2011 from News Updates for Syracuse and CNY. Website:http://www.syracuse.com/news/index.ssf/2009/03/what_a_dude_named_johnny_cupca.html

Smith, T. (2006). Johnny Cupcakes finds sweet success in t-shirts. Retrieved June 29^th, 2011, from Weekend Edition. Website: http://www.npr.org/templates/story/story.php?storyId=5618417

Apple Introduces iCloud - What It Means For Media Distribution

I'm sure you are all familiar with a small company known as Apple. In case you didn't know, they are a computer company knwon for their sleek, modern, user-friendly devices like the Apple computer, iPhone, iPod, iPad and the world's largest music seller, iTunes.

From June 6^th till June 10^th, the Worldwide Developers Conference (WWDC) was held. Thousands of Apple engineers demonstrate and explain the incredible power of the world’s most advanced operating systems and how our apps are integrated. They even offer workshops where you can learn to create your own apps and games so you can be an iTunes success story one day.

At this specific conference, Apple introduced to the world their latest innovation, iCloud. And of course it’s another word with an ‘i’ in front of it. Very original. But what is it?

To break it down, it’s basically a hard drive in the sky, therefore iCloud. iCloud stores your content so it’s accessible from your iPad, iPhone, iPod, Mac or PC.

It keeps your music, apps, photos, e-mail, notes etc up to date across all of your devices. No syncing required, iCloud does it for you. For example, if you buy a song from your iPhone, iCloud will automatically spread it across all of your devices. Same thing goes if you buy a book, app or any other product from iTunes.

Once you sign-up for iCloud, you will get 5GB of storage. With the launch of iCloud, MobileMe & iTools will be replaced. Since MobileMe will be discontinued, iWeb will no longer be in service as well. No word from Apple yet what will happen to current iWeb users but I’m sure their websites will still run, you just won’t be able to create a new one.

iCloud will launch in the fall of 2011 and will include the new IOS 5 update, created for iCloud.

Reference

http://www.apple.com/icloud/what-is.html

http://developer.apple.com/wwdc/about/

Podcasts

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Inside Fashion Law

Guidelines to what is accepted in society. That is a debatable phrase to what the law means to us. Without law there would chaos, conflict and even devastation in our communities. As times change, so does the law if we agree with it or not, that's just how society works.

The fashion industry is no different from any other industry, there are laws and regulations in place that companies need to obey so they can be protected and of course to avoid all sorts of chaos. But as in any other industry, there are all kinds of lawbreakers. I want to focus on three (3) examples that have impacted the fashion industry recently and the outcome of these examples.

With over 400 stores, 12 000 employees and billions in revenue, Forever 21 became a global empire focusing on cheap girl fashion. But all this success didn't come without a price. Between 2006 and 2007 the company faced 15 lawsuits alone. Not only are companies and designers suing Forever 21, their own workers are too. In 2001, all the factory workers attempted to alert management on the unsanitary working conditions and owed wages. Forever 21 refused to negotiate with the workers and the Asian Pacific American Legal Center filed a lawsuit against them. Forever 21 finally decided to settle and with Sweatshop Watch on their backs they didn't really have a choice.

My second example comes from an unique shoe company. Blake Mycoskie is the owner and chief shoe giver (CEO) of Toms Shoes, a shoe company based out of Santa Monica. California. But it’s this company’s message that makes it so unique. For every pair of shoes purchased, Toms gives a pair to a child in need, that’s where the companies slogan comes in play; One For One. Toms was started in 2006 and to date has given back more then 1 million pair of shoes to children in need.

In late 2010 the very popular shoe company Skechers, launched a new line called "BOBS" and looks exactly like the Toms shoe model. Not only did they copy the shoe design but they even copied Toms main mission, One For One. For every pair of Bobs purchased, Skechers will give a pair to a child in need. It became a global controversy, even so that Skechers had to take down their Bobs promotion. But I think you need to take a deeper look at this situation. Blake Mycoskie, the founder of Toms Shoes, has always motivated other people and companies to copy his business model, so you have to be careful what you say. I doubt Blake thought someone would copy his business model so blatantly but in the end this proved Skechers lack of creativity and originality. If Skechers copied the idea in a different way it could have worked but doing something like this purely for marketing and promotion purposes is unethical and the consumer and see right through it.

My third and last example comes from a very unique entrepreneur who started his company as a complete joke, Johnny Cupcakes. Johnny first started selling his t-shirts back in 2001 while touring with his band. The brand grew so much that Johnny had to quit his band so he could focus on his new clothing brand. Today Johnny Cupcakes has three (3) boutique stores in the US and one (1) in London. But with such a successful and popular brand you can expect a few copycats out there.

Pastry is an all girl clothing line founded by the daughters of Run DMC legend, Rev Run. Angella and Vanessa Simmons didn't think (at the time) the small time clothing brand Johnny Cupcakes would hurt them as much as he did. A customer stating that he saw the new upcoming line by Pastry contacted Johnny. One of the shirts looked exactly like one of Johnny's shirts, the placement and font was basically the same. Johnny kept it quiet and decided to contact his Trademark attorney. Pastry was ordered not to release the shirts because of trademark infringement (Johnny did trademark the term: "Make Cupcakes Not War"). Johnny's customers were very disappointed in the idea of someone stealing his design and gave Pastry a bad reputation right off the bat.

Reference:

1. http://fashionlawyerblog.com/?p=371
2. http://www.fastcompany.com/1696887/toms-vs-bobs-how-skechers-shot-themselves-in-the-foot
3. http://www.cotygonzales.com/2009/01/15/pastry-tries-to-imitate-johnny-cupcakes/

Something Companies Tend To Forget About...Ethics

In the most basic terms, a definition for business ethics breaks down to knowing the difference between right and wrong, good and bad, and choosing to do what is ethical, in other words what is right. The term “business ethics” is used to define the agility of individuals within an organization, and an organization as a whole for that matter (Business Definition for: Business Ethics, n/d).

A lot of businesses today have earned a bad a reputation for just being a business. The bottom line for most companies is to make money and it should be but to some people that is all a business cares about. For the most part it could be called capitalism. To make money isn’t wrong but it comes down to the manner a business conduct themselves that brings up the question of ethical behavior.

Every business should have good business ethics. There are many factors to consider when a company does business with another company that is considered unethical. Is the first company part of the other company’s unethical behavior cause of their partnership? Did they know from the get go what they were getting themselves into? Some people would say yes, the first business has a responsibility and it is now a link in the chain of unethical businesses.

Major corporations, including most of the brands that the public use today, can be used as examples not to think too much of ethical business behavior. Major brands have been fined millions for breaking ethical business laws. The major deciding factor is still money in the end for them.

If a company doesn’t comply with business ethic laws they usually end up being fined. Many companies have broken anti-trust, ethical and environmental laws and received fines worth millions. The main problem with this is, is that these companies bank a lot more money then they’re fined. Billion dollars of profits blind these companies to their lack of business ethics, and in the end the dollar sign prevails (What is business ethics, 2009).

In the end it is up to the public to decide if a company is complying with ethical business behavior. If large amounts of money are in play for these companies, they might not be paying too close attention to business ethics. There are many companies that pride themselves in their business ethical principles and behavior, but in this competitive world they are becoming less and less.

Understanding the broad landscape of business ethics can take lots of understanding, time, discipline while being problematic. The field reaches very important topics that raise concerns such as corporate behavior, reputation management, accurate accounting and audits, fair labor policies etc. After business debacles such as Enron, Adelphia, and Worldcom and many others it may be easy to conclude that the world of business can be a cut-throat environment where ethics doesn’t matter or is neglected.

Ethics is a major contributor to a company’s success. It focuses on certain areas a company relies on namely: public image, investment and partnerships. Each corporation has it’s own public image in particular that reflects which way the public see’s it as a whole. These images are the results of a vast variety of different reasons but it primarily comes down to the way a company acts with respect towards different things in its environment. Business ethics plays a major role in determining a company’s public image since they (the public) determine behavior.

When a person, investor or company is considering a particular stock there are several different aspects that needs to be considered. This includes the future prospects of the company, public image, products their selling, service their delivering and in the end it comes down to ethics.

A company that encourages investment in itself needs to have a strong sense of business ethics. Companies fall apart or become extremely powerful with the partnership with a joint venture. To get a good partner you need to have a good overall track record and an excellent tradition of ethical business behavior. If you don’t, a partner will never consider to join your company and will be considered a bad investment (Business Ethics - Why They Are Important For a Company and Its Success, n/d).

References:

n/n. n/d. Business Definition for: Business Ethics. Retrieved April 12^th, 2011 from BNET. Website: http://dictionary.bnet.com/definition/Business+Ethics.html

Cuizon, G. Jan 2009. What is business ethics? Retrieved April ^12th, 2011 from Suite 101. Website: http://businessmanagement.suite101.com/article.cfm/what_is_business_ethics

Vasquez, M. n/d. Business Ethics - Why They Are Important For a Company and Its Success. Retrieved April 12^th, 2011 from Ezine Articles. Website: http://ezinearticles.com/?Business-Ethics---Why-They-Are-Important-For-a-Company-and-Its-Success&id=1315711

The iPod Revolution

When you think back these past 10 years, you can’t imagine that time went by so fast. In a blink of an eye we entered the new millennium, experienced extreme terrorist acts, new wars, the last few chapters of the space program, the loss of very talented and iconic hero’s and the list goes on. It’s been a very interesting decade filled with extreme highs and extreme lows. But personally I think the most exciting achievements were made in the entertainment industry.

One word… Internet. The roots go way back to the 60’s but became a more public image in the 90’s while it really took off in the 00’s. With this amazing new “service” we can have the whole world in our hands without any limitations. For most of us, looking at the millennial generation, we use the Internet as our primary source for entertainment. Whether it’s social networking, watching movies, finding a lost friend, looking up your closest theater or shopping, entertainment is one of the main things we do on the Internet. This is where Apple comes in or actually, the vision of one man, Steve Jobs.

Your moms and pop’s music store is closing all over the world or losing business fast, and it’s not just because of a poor economy. The biggest upset in the record store industry came when Virgin announced the closing of their record stores across the world and especially the US. A company that made $280 million annually got shut down by the digital music age in a matter of a few years. This proves just how much the digital music age has affected the record industry and the music industry in general for that matter. (2009, paragraph 6, All US Virgin Megastores To Close By June)

But through all of this one man is smiling, Steve Jobs. He saw the future of the music world and took that gap. He changed our music lives forever and in 2001 introduced to the world… the iPod. A small device you can carry in your pocket while holding more then 1000 songs? The world was in disbelief, that’s amazing! And amazing it was. (n/d. paragraph 1, How has Apple Taken the World Pie?)

Two (2) years later Apple went a step further and in 2003 introduced iTunes. The biggest music store; available to me in my own house, by using a mouse. We don’t have to leave the house anymore to go buy a record. This was the beginning where record stores started seeing a decline in physical album sales. (n/d. paragraph 1, How has Apple Taken the World Pie?)

The great thing about Apple is that they employ both hardware and software engineers so they’re able to create all their products in house so both hardware and software can integrate seamlessly. The iPod design is so clean and simple which added to the success of the product making it user friendly to everyone.

The first iPod commercial featured a guy sitting at his desk while uploading cd’s to his computer and transferring them to his iPod; ‘A Thousand Songs In Your Pocket’, the first tagline and commercial introduced this revolutionary product to the world. It’s debatable on how the iPod became so popular but Apple’s distribution channels were a key factor. The relationship between Best Buy & Circuit City was torn apart in 1998 but came alive again in 2002 when iPods became available in over 500 Best Buy stores in addition to 225 CompUSA locations already selling the product. In 2005 Radio Shack purchased over 400 000 iPods for it’s initial 3 month sales period. Radio Shack distributed iPods to over 7000 of their locations. iPods in vending machines at airports was another major selling point, putting the iPod in over 21 000 locations. But the ultimate selling point for the iPod comes from the Apple Stores themselves. It’s the personal interactive experience in these stores that creates the ultimate selling point between the customer and iPod.

Apple has done an amazing job to get the iPod in as many distribution channels as possible. By doing this the halo effect took place. By selling millions of iPods at across the board, it provided the company with a greater scope of awareness to it’s other products including the iMac & MacBook. Because of this “halo effect” Apple’s retail computer market share in the U.S. up to 4.5 percent in July 2005 from 2.8 a year before. This proves that Apple’s distribution channels are effective.

There are many other MP3 player competitors claiming to be the next iPod killer but at the end of the day the real “iPod Killer” was Apple itself by introducing the iPhone. Now you could have an iPod and revolutionary mobile smart phone all in one. By doing this Apple could now dominate & maintain two (2) markets namely smart phones and MP3 players. Before the iPhone came around, other cell phones were regarded as the ‘iPod killer’ but they didn’t really prevail since Apple combined their revolutionary iPod with a phone and once again took the top place.

iTunes and iPod still continue to amaze everyday and will for a long time to come until the next visionary comes a long. To this date Apple owns 80% of the total MP3 market share. Also, to date Apple holds over an 85% market share for electronic music and has sold over half a billion tracks (continues to rise everyday). Apple has changed the way we look at consuming music in a lot of different ways; it’s the iPod revolution. (n/d. paragraph 1, How has Apple Taken the World Pie?)

References:

n/n. n/d. How has Apple Taken the World Pie? Retrieved April 31, 2011 from Filer. Website: http://filer.case.edu/dak22/

Christman, E. March, 2009. All US Virgin Megastores To Close By June. Retrieved April 31, 2011 from Billboard. Website: http://www.billboard.com/bbcom/news/all-u-s-virgin-megastores-to-close-by-june-1003951620.story#/bbcom/news/all-u-s-virgin-megastores-to-close-by-june-1003951620.story

Interview with Nick Sambrato from Mama's Sauce

For my interview I chose to interview Nick Sambrato, the owner and founder of Mama’s Sauce. Mama’s Sauce is a boutique print shop located in downtown Orlando that dedicates itself to only using the finest water and soy-based inks and cleaning products. It employs designers who truly have a passion for the design process of business cards, show posters, t-shirts, wedding invitations, etc. Mama’s Sauce also has a very interactive website where an order can be placed. It also features a blog and online store with a range of their own limited edition products.

The Mama’s Sauce team is a young group of print and design fanatics who have a drive and passion for what they do. This adds to the fun-working environment they have established. They are also very personable with their clientele so it is more like a family than your normal customer-business relationship. There is sense of community with this company, as it acts like a hub for creative people to come to and explore new things.

One of the biggest challenges Nick faced starting his company was committing. As soon as Nick said out loud he was going to do this he realized he actually has to commit physically, emotionally, spiritually, and mentally and birth this business. There was no negotiation with anyone, except himself. He told himself to just do it. Nick describes challenges as something that put you the test instead of being a hurdle. A challenge makes you stronger and prepares you not to make specific mistakes again in the future so you can build your business stronger instead of taking two (2) steps forward and one (1) step back.

I asked Nick how he prefers to negotiate with customers and contractors since he has to deal with them on a day-to-day basis. From his response I realized affiliation was very important to him because face-to-face conversation reduces personal distance so it’s easier to avoid stereotyping and other misconceptions. Nick is the owner of a business and acts professional on all levels, so when it comes to negotiating with your clientele and contractors, it’s key to always do it in person if possible. These ads to the personal touch his business focuses on so much.

The greatest advice I got from nick was to be true to yourself when negotiating. Be prepared and know what you want. Depending on the negotiating, in the end you’re selling yourself and that’s why it’s key to be professional. In the beginning of your career, it’s always wise not to be too aggressive if negotiating with someone. Depending on the issue, it’s better to think logically, ask for advice and try to achieve mutual gain. As a young adult entering the working world, I thought this was great negotiating advice from Nick.

Have a look at the Mama's Sauce website HERE

Association Green (AG)

For a company to go green now a day is very important. Especially if you have a specific niche market, like Purple Gorilla does. To go green can mean many things depending on your business but it basically comes down to adopting new and sustainable ways of consuming energy that don’t drain the planet of it’s natural resources nor render it.

Association Green is the Green Initiatives Division of Organization Management Group Inc. OMG supports for-profit and non-profit organizations. Association Green, AG for short, main goal is to create the opportunity for companies to network, educate and locate resources on becoming environmentally responsible.

There are many companies out there that want to go green but they don’t know how. That’s why associations like Association Green are important in today’s corporate like structure.

The research link on the AG site is an excellent source of links for companies who are researching their possibilities of going green. Most of time companies want to go green or they’re considering it but the big question is where to they start; now these companies have a starting point to start their green movement.

For Purple Gorilla AG can assist in many ways and organic clothing will be our first step. We’re a company that spreads the word on Social Good so we’ll be regarded as hypocrites if we don’t embrace the green movement to the fullest.

Regular cotton production uses about 25% of the world’s insecticides and more then 10% of the pesticides, so by using organic cotton or recycled cotton we’re able to reduce these numbers. Good news for the market is that the organic cotton industry is growing every year so environmental damage can be reduced.

Associations like the Green Association is a critical factor in the Social Good industry today. Via the association companies can network and unite to make even a larger effort to reducing environmental damage.

Association Green Official Website
The differences between regular cotton & organic cotton can be seen HERE

The Power Of Art

Patrick Chappatte is a cartoonist who uses clean, simple pencil strokes to illustrate to the point humor events. TED (Technology, Entertainment & Design) hosted Patrick in July 2010 where he talks about the power of cartoons. I think it should be referred to as art instead of cartoons because that is what they are. He's art illustrates world events in a serious/humorous way but tells the truth some people don't want to see.

Art has the power to communicate messages. In some 3rd world countries and even 1st world countries illiterate people are able to understand and visualize messages that art/cartoons are portraying. This bridges communication and language gaps that are faced in some rural areas around the world as well as in war areas.

In my business plan art messages play a big role. Purple Gorilla is exclusive/limited edition clothing line where each season garments will tell a different story. The goal is to partner with the WWF (World Wildlife Fund), the world’s leading conservation organization works in 100 countries. WWF's has a global reach with a foundation in science, involves action at every level from local to global, and ensures the delivery of innovative solutions that meet the needs of both people and nature.

Each season Purple Gorilla will release a new line of garments that focuses on a cause the WWF is fighting. All designs will be based on that specific cause so we can raise more awareness globally.

With the power of art and together with the WWF we can communicate powerful messages to everyone globally and so raise awareness to issues that need our attention just like Patrick Chappatte is doing with his art/cartoons. A picture is worth a thousand words.

Take a look at Patrick Chappatte's TED talk here

Another great read is from sustainable cities where art is used to help describe the situation in some Mexican areas. Read here.