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Southwest Airlines’ Business Model Gamble
Southwest Airlines recently reported their first net loss since Q3 2009. Southwest claimed the losses were primarily due to fuel hedge issues. However, I believe there may be a larger issue at play. While most other airlines have increased net revenue by nickel and diming their customers, Southwest has done the opposite. Last year, US […]
Howard Schultz Executes an Unassisted Triple Play
Hats off to Howard Schultz, chairman of Starbucks. Schultz announced that starting Nov. 1, Starbucks will collect donations of $5 or more from customers to help job growth in the U.S. With this “Jobs for USA” program, Schultz is collaborating with the Opportunity Finance Network, a nonprofit that works with nearly 200 community development financial […]
The Biggest Business Model War Today
The most recent battle in the Smartphone War is about to be waged. The contenders? Apple and Motorola Google. The iPhone 5 versus the Droid Bionic. But instead of writing yet another iPhone vs. Droid review I thought it’d be interesting to compare business models: Apple vs. Google. Business Model War The tech guys may […]
Is Annoying Customers Good for Your Business Model?
GameStop recently caused quite a stir with their core gamer customers by removing a coupon from the popular game Deux Ex. The coupon was included with the DVD and was good for a code that allows you to play the game for free using the online gaming service OnLive. It’s a neat giveaway, and it […]
I love spam business model
I would hate to add up the hours my company spends fighting and deleting spam on our blogs. It’s massive. Spam is not in our business plan or business model. It is simply an unfortunate cost of business.
During my research on spam pre…
Kraft Snack Division’s New Business Model = Cadbury + Nabisco
Information as to which products Kraft will place in the snack company and which will land in the grocery company are a bit sketchy. However, it seems that anything junk-foolish falls into the Snack side. After reviewing the products th…
Kraft Acquires Cadbury for $19 Billion Only to Split Company 18 Months Later
18 months ago Kraft (KFT) acquired Cadbury for $19 billion and became the second-largest food company in the world, based on revenue (Nestle is #1). In 2007 Kraft acquired Lu Biscuits from Danone for $7.7 billion. Why all the major acquisitions? What do they do for Kraft’s Business Model? According to Kraft CEO Irene Rosenfeld […]
Is Customer Retention the Achilles Heel of Groupon’s Business Model?
Groupon is a very profitable company with an interesting business model. There is no questioning that. The question is how long those profits will last if they can’t deliver to their customers. Companies dish out big bucks to get business through Groupon. Why doesn’t the social promotions site take their obligation more seriously? Revenues topped […]
GROUPON – Inevitable Failure – Inefficient Business Plan
I think the best way to evaluate GROUPON is the old fashioned SWOT analysis developed by Albert Humphrey. By way of reference SWOT stands for Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business plan. Below we will look at GROUPON’s business plan in the form of the company’s Strengths, Weakness, […]
Do Copycats Hurt Groupon’s Business Model?
If imitation is the highest form of flattery, then daily deal site, Groupon, has been highly complimented by the countless copycat companies that have emerged recently. Could these copycats be eroding Groupon’s business model? Perhaps. But, by continuing to differentiate itself and adapt to the competition, Groupon could continue to lead in what has become […]
