EA (Electronic Art)

 

 

Electronic Art company has published that their earning has increased up to 22% since the beginning of the year 2017 and that among the largest video game company. Here are some main phase to look at:

It started with their earning plan. The company expected a revenue of 75 cents a share, up to 50 cents in the previous year. The odds cut parts of wall street company and EA does not consider an ordinary part of doing business. A year earlier, the company’s announce a net of $2.79 per share. Also we need to look at the company’s revenue plan strategy. The company predicted their revenue to rise up to 18% to $1.09 billion, from a year before of $924 million. After EA pulling of some revenue from online games, the company reached $1.31 billion total revenue a year ago.

    Nevertheless, The company did not release their big games earlier and that a good sign since their current production is the top selling game in the United States. The analysis expect a hit profit from the major video games such as “Battlefield” in November and “FIFA 17” in september. The company's revenue also been increasing  from mobile games, which was number 5 mobile app publisher in United states.


https://www.wsj.com/articles/electronic-arts-earnings-what-to-watch-1494327602

By: Mohammed Almomen

The Future of Car Industry.

 

According to Tesla’s co-founder and executive, Tesla is taking its first inroad in middle east, which is one of the biggest markets for luxury and sport cars. The company expected to open their first this July in Dubai mall. They're also planning on opening another store in Abu Dhabi in 2018.

    Tesla’s sales has tremendous rising in the in the last quarter of 2016, which make the company one of the fastest growing car producers. Producing 80,000 car a year was Tesla's goal in 2016. On the other hand, the chairman and the biggest shareholder of the company stated that Tesla is going to produce 500,000 a year by the end of 2018, and double that in 2020.

    Dubai seems a great market for Tesla’s since it’s relatively to fancy cars. The price dropping of oil in 2014 led many government to raise the gasoline price. Also,  Dubai and many government started to encourage people to purchase a friendly cars to the environment such as cars that produced by Tesla.

    Since cars is the most popular transportation tool, Tesla has to cut down a little bit of their price to increase their demand. The company announced couple of cheaper prices in 2017 and will announce more in mid 2018. Therefore, the chairman of Tesla, Mr. Musk is planning on grab the investment attention and take the company’s investment to the next level.


https://www.wsj.com/articles/tesla-makes-first-foray-into-middle-east-1486999094

By: Mohammed Almomen

Could Hulu be the Future of TV

Could Hulu be the one to get television right, I think so. In the television streaming industry it can be extremely difficult to distinguish one's target market from their competitors, I mean who doesn't watch tv or at least own some type of service that allows them to do so? How does a company in this industry gain an advantage over another, well Hulu might have the answer. Hulu differentiates themselves by making navigating their website and app easy for the customer. In fact their new updated app demonstrates an interface far superior to that of their competitors SlingTv and DirectTv who just seem stuck to the old ways of cable. 

Additionally, most would agree that the biggest flaw with Netflix is that you have to wait for new shows to be released in a series long after they have aired and in the age where people literally live tweet shows this just simply won't do. Hulu allows customers to see shows the morning after they air on Television which although is not fast enough for live tweeting, it is definitely an improvement from Netflix's wait time of about a year. If Hulu plays its cards right, it could actually beat out Netflix but only effective marketing will tell.

 https://www.wsj.com/articles/the-new-hulu-looks-a-lot-like-the-future-of-tv-1494433910

New York Times Benefits from Trump!

Extra! Extra! Trump Administration proves to be an excellent marketing tool for the New York Times. The 2016 presidential race was definitely a unique circumstance and one of the most widely sought after news events in the United States and that means big bucks for news companies such as the New York Times. Of course with every move the Trump Administration makes being watched and reported it is difficult to say that reporting on whats popular is an adequate marketing tool or at least one that is just common sense. However, what distinguishes the Trump Administration is it's ability to allow newspapers to expand their target market.

"The media company said paid digital subscriptions reached 2.2 million in its first quarter, an increase of 348,000 from the prior quarter. The gain included 40,000 new crossword subscriptions."
As demonstrated by the rise in recently released first quarter figures, the company whose predominant audience is educated men seems to be gaining a bigger audience including more millennials and women. While this might not have been intentional and simply the new reporting news we can see a negative correlation occurring between Trump's audience and the audience a the more liberal minded New York Times. 

A large part of the marketing mix is knowing your target market but perhaps an equally large part is knowing your competitions target market.The New York Times serves a fairly specific market, educated middle age men whom have a liberal tendency, so what better way to attract a new audience than to align your current target markets values with the target market you wish to expand to. The answer for the New York Times is Trump because not only is he Republican but he also made a nasty enemy of women during his campaign as well as generally not appealing to millennials. Lastly, Trump received a lot of support from those without college degrees whom statistically do not read the news as much as those with college degrees. This newly found interest in politics might have also sparked some new subscriptions as well but only time will tell if it will be long term.

https://www.wsj.com/articles/new-york-times-says-subscriber-growth-is-highest-in-its-history-1493824033

Dr. Dre and beats

ANDRE YOUNG AND JIMMY LOVINE 

Dr. Dre and jimmy lovine are some of the most successful producers in the music industry. For decades, the two have been bosses in their labels and have made a big impact in hip hop and pop music, but are now looking into finding young students to make them more money in entrepreneurship. 

Dr. Dre sold beats for about 3 billion dollars, now that dr. dre doesn't own the company hes taking Jimmy Iovine into a new route the duo is launching a new academy at the University of Southern California with the goal of inspiring the next generation of entrepreneurs to carry their industry ties and higher visions with a lot more purpose . The target market is aimed towards students who want to be successful in the entrepreneurship eager to work in the dream factory. 




https://www.wsj.com/articles/dr-dre-and-jimmy-iovines-school-for-innovation-1415238722

Sony to Sell Updated Model

SONY PLAY STATION MODELS 

sony is now introducing a new model of the play station, along with its new higher end version. Sony announced that the high end version of the play station will have a higher capability to handle video games with higher graphics and less frame drop. along with the high end release the other version will be smaller and less expensive to the current $350 play station.

Sonys marketing strategy producing the two models can attract more casual users into buying a play station. As well as the hard core gamers who  will now have a console capable to having the best gaming experience.

Facebook is already a giant in the social media realm. Facebook executives are soliciting pitches for TV-like original video programming as part of  push to compete TV add revenue. They are primarily focused on weekly series. 

now that facebook is now looking to bring the tv style content to the video programming. Unlike many of the content providers, facebook is offering their content creators a cut in the revenue by creating videos only exclusive to the platform.This is a great marking strategy because it will allow Facebook users change the way people use the platform and the content creators will get paid. 

https://www.wsj.com/articles/facebook-intensifies-hunt-for-tv-like-video-programming-1488551106

American Colleges & Fraud risk

Using false documents is against the law and is can risk a students future. When receiving applicant's official documents, many schools across the united states noticed they had been blatant evidence of fraud.students are now coming out and commenting on the situation and released to the universities that they payed agents money in order to be accepted into a university in the united states. This was an issue for many schools across the united states when it came to students attending the schools. 

From the prospective of many schools in the united states, trying to recruit more students from foreign countries is an excellent marketing strategy. Out of state tuition is more expensive.In essence, this becomes a beneficial situation. The university profits from having agents to help recruit,and  they also become a diverse campus by having students from foreign countries attend their schools. 

https://www.wsj.com/articles/american-colleges-pay-agents-to-woo-foreigners-despite-fraud-risk-1443665884?cb=logged0.4197579256724566

Disney's Profits Continue to Rise Despite ESPN Woes

Disney is perhaps one of the most successful companies out there, owning various big names in nearly every market. However, one of its most successful partners, ESPN, is hurting. ESPN has been under fire after laying off hundreds of employees over this past month. Many strong reporters and analysts have lost their chance in becoming a household name in the world of sports as most of it runs through ESPN.

Furthermore, Walt Disney has reported strong second quarter growth as its stock is up from $1.30 a share to $1.50 a share. Also, revenue is also up as it has increased 3% over this past quarter. It is unknown how Disney is able to maintain growth and continue to make strides in the markets. Despite the downhill spiral that ESPN is in, Disney is still cashing checks. Perhaps we can contribute this to the brand that is Disney itself. Their brand is remains stronger than ever and they continue to be a household name.

Keaton Shaw

MKTG 3343

https://www.wsj.com/articles/disney-profit-rises-despite-espn-woes-1494362684 

Samsung Gets Green Light to Test Self-Driving Cars

 The Samsung branch in Seoul has received approval from the ministry of Land, Infrastructure and Transport to test self-driving cars on the roads. Although the technology comes from Samsung, it will be using Hyundai motors to conduct trials. There isn’t clear information on where exactly the trials will be conducted, but the minister has given access of most public roads to Samsung since November, and as a government-run facility was also supplied to them.

Many technology companies are trying to develop a software to enable the use of driverless. Rather than making the cars themselves, they are supplying the car-makers with the necessary technology to implement in the making of the car. Samsung saw the advantages of getting involved in the business of automobiles.

Samsung is teaming up with The Suwon, a South-Korean firm that made a big entrance with a $8billion deal to buy automotive supplier Harman International Industries Inc. Harman became a subsidiary of Samsung in March, and both parties seem eager to work together to revolutionize the Tech Industry. Samsung competitors like Apple and Alphabet are also taking initiatives. Apple is said to be in the early phases of testing driverless cars on roads.

The Hyundai cars that are being used by Samsung has sensors that recognize obstacles, but Samsung plans to create a self-driving algorithm that should be reliable, even in bad weather.

I find this article interesting because it shows how a company can be flexible and direct its business towards a market that is new and ready to be explored. It is important for a business to be able to expand or shrink, and it this case expansion is important, especially if they see that there is more profitability.


https://www.wsj.com/articles/samsung-gets-green-light-to-test-self-driving-cars-1493721196

Snapchat Leaves It to Rivals to Connect the Developing World

Snapchat’s popularity grew very fast.The youth loves it, and everyone around the world wants to use it and “take snaps”. The issue that this article discusses regarding snapchat is it’s lack of ubiquity.

Snapchat has disregarded the fact that its audience is worldwide, including less-developed countries. It favors countries in North America and Europe for business because that is where snapchat has 75% of its daily users, but also because those places are where the big American dollars circulate. The company has refused to expand and customize its application for people that live in areas with slower internet to be able to use it. It focuses on snapchat updates for Apple devices more than androids.

This strategy will have a negative effect on snapchat’s user growth in the short term, and also have a negative effect on its revenue on the long term. Since the company has gone public in March, it’s investors have expectations. For the first quarter, a senior equity analyst at Cowen and Company has estimated a loss of revenue of  $2.2 billion on $142 million. This is due to an increase in expenses due to the new public status of the company.

According to the article, the reason why snapchat focuses on iPhone users is that they are an image-based company. iPhones function on fast-running networks, and snapchat’s new features such as augmented reality lenses are hard to incorporate in phones running on slow networks. Snapchat will face challenges if they don’t expand their market. Facebook, with its new features that resemble snapchat stories. Facebook has a big advantage in Asia, where snapchat doesn’t have a strong presence.

This article gives us an overview on the status of snapchat’s business as well as expectations on
how it will develop. Snapchat chose to target a specific market, which can work, but it is important for them to take these expectations in account and see if they would make more money if they expanded their business.

https://www.wsj.com/articles/snapchat-leaves-it-to-rivals-to-connect-the-developing-world-1494257835

Big Box Producers Losing Ground - Swept by Underwhelming Shopper Satisfaction

Big grocery store shelf names like Kraft Heinz Company, Kellogg Company, and Mondelez International Incorporated had best keep a close eye over their shoulder as newer trends come sweeping by to give their competition the advantage. These are just a few of the big brand names that most of us recall browsing through in search of the next hash mark off of our grocery list. But a new trend is giving those brands a run for their money, filling their dwindling void of shelf space, and saying goodbye to that grocery list almost entirely.

(Before)

Packaged goods have seen their hay day come and pass. Once hailed as the low cost - long shelf life mealtime mainstay, packaged goods have now experienced their fall from grace with sales slipping nearly 2.5% in just the first quarter of 2017. Shoppers’ tastes have refined as they are now more intently searching for the healthy, local, and fresh alternatives. A flame that ignited almost a decade ago, with select grocery stores offering fresh ‘home-made’ meal alternatives for hungry shoppers on the move, has now exploded into the newest grocery status quo. Big name stores are now seeking locally produced, fresh, and organic ingredients to replace the big boxes with the big taste of consumer demand.

(After)

As many readers may have noticed already our traditional grocery store is losing its classical image - stripping itself of bulky metal shelving and replacing the eyesores with sleek stainless serving displays and cookware. Adopting a more welcoming environment for customers has proven successful as sales of fresh produce soar. Hungry shoppers who used to turn to a bag of sodium dense snacks now may opt for the fresh deli indulgence at a comparable cost with the added savings of their health conciseness. Big box names are scrambling for an identity overhaul as their expiration date draws near. In order to stay afloat, packaged product producers need to re-evaluate their consumers, turn back their roots, and employ a fresh product alternative to keep up with the small name trendsetters. In the meantime we will see stores like CVS, HEB, ShopRite, Kroger, and many others continue to re-model and re-build – from the ground up.

Name: Joseph Webb

Class: MKTG 3343

Article: Big-Name Food Brands Lose Battle of the Grocery Aisle

Link to WSJ Article: https://www.wsj.com/articles/big-name-food-brands-lose-battle-of-the-grocery-aisle-1493596823

Microsoft Cortana-Powered Speaker Challenges Amazon’s Echo With Skype Calls

In the last years, technological advancements have been booming. Microsoft is bringing a new Echo smart speaker from Samsung that can make phone calls. It will be competing with Amazon’s Echo smart speaker, but it will also compete with Alphabet’s google home device. This will be a cooperation between Microsoft and Samsung: the voice controlled-invoke will come from Samsung, and it will use Microsoft’s Cortana digital assistant to take commands. Apple also seems to be working on an Echo smart device and Siri will the digital assistant used.

The Microsoft invoke will have the same features as the Amazon invoke: it plays music, can research things for the user. According to Harman’s senior vice president David Rogers, who works for Samsung, the device will have superior audio quality and will be integrated with Microsoft’s skype calling service. This is a new feature that the competitors do not have, but are planning to add to the next generation of their products. The price of the invoke is still unclear, as well as the applications that will be on it.

I believe that this article shows us how the market reacts to consumers. With the technological advancements, this product became so demanded that the biggest companies are all competing to have the lead. That is what happens with all businesses. This article also shows us the power consumers have in the market.

https://www.wsj.com/articles/microsoft-cortana-powered-speaker-challenges-amazons-echo-with-skype-calls-1494269144

Uber Faces Federal Criminal Probe Over ‘Greyball’ Software

In this article, we are informed on a situation between Uber and federal prosecutors as well as uber’s competitors. The federal department has been investigating uber for used a “Greyball software” that hides the identity of drivers from local regulators.

The Greyball software hides driver’s identity and shows a fake version of the application to local regulators in cities where Uber is banned.

Years ago, Uber had said that they would stop using the software. They were also blamed for using the app to cancel rides from competitors like Lyft. The San Francisco company hasn’t been talkative on the matter, but one of their claims is that they were only using the app to protect the drivers from physical harm, to test their models and prevent fraudulent business.

This federal problem is only one of many things that have been going on with Uber. As it was said in the article “the company is investigating claims of sexism and sexual harassment, as well as claims of a harsh workplace conditions under it’s chief executive, Travis Kalanick.”  The company is also being sued by Alphabet Inc., which blames the company for allegedly stealing some of their plans.

I chose the article because I believe that it is wrong for Uber not to follow laws, but i also think it is interesting to go see the lengths to which companies would go to get ahead of their competition. Some people would probably

https://www.wsj.com/articles/uber-faces-federal-criminal-probe-over-greyball-software-1493948944?mg=id-wsj

Pop-Ups, The New Wave

Customers are beginning to prefer pop-ups over storefronts. It's been bringing in more revenue for many companies and the costs of starting one up are costing them less. Pamela Barsky shares her cost for a 10x10 foot booth at $7,300 a month, with sales ranging from $40,000 to $100,000. She also brings in enough revenue so that she is able to 15 employees.

FAD market in Brooklyn is a weekend showcase of pop-ups for independent artists and designers that have doubled in vendor numbers and 2,000 visitors a day, tripling in attendance. Jen Bailey, the director, says that the market is so appealing that people love it so much and even volunteer to help set up table, hand out fliers, and greet shoppers.

Artists & Fleas is opening a new 5,000 sqft. in Soho, in replacing the former home of Armani Exchange, on Friday. Their location in Chelsea attracts up to 10,000 shoppers on peak days, attracting merchants to be willing to pay $65,000 a year for a 50 sqft. booth. Merchant, Andrew Cheung, says he averages $50,000 in sales a month. There is also a $500 "marketing and merch. fee" and a $25 fine if you are not supervising your booth during market hours.

https://www.wsj.com/articles/pop-ups-markets-generate-big-bucks-for-retailers-1494322201

Alan Nguyen
MKTG 3343

twitter & live videos deals

The social network revealed its partnerships with companies BuzzFeed, Vox Media, MLB Advanced Media and Live Nation to produce a live-streaming content for the platform.The announcements come as Twitter attempts to positions themselves as a video provider for professionally-produced live video content and tap into advertising budgets typically reserved for TV.

Twitter faces competition with other already successful and commanding forces in live video content and music providers, like facebook and youtube, so twitter will have to come up with a marketing strategy to get the target market they are after.


https://www.wsj.com/articles/twitter-announces-more-live-video-deals-1493681017

jessy perez

MKTG 3343

‘American Idol’ Returns to TV, This Time on ABC

Music-competition show aired on Fox for more than a decade until cancellation last year

ABC says it will revive “American Idol” after it has spent only one year off the air.

The network said Tuesday that the music-competition show will begin sometime in the next TV season around September. The series originally aired on Fox and got cancelled a year ago after years of fading ratings. But ABC Entertainment President Channing Dungey called it a “pop culture staple that left the air too soon.”

Bringing back the show will be a challenge for ABC. If the show was losing ratings on FOX just a year ago, what is it that ABC can do in order to make the show different and better? They already face competition with other music shows like The Voice and The X Factor, so ABC has to find some strategy to show American Idol is different and get their target market engaged.

https://www.wsj.com/articles/american-idol-returns-to-tv-this-time-on-abc-1494334759

Janelle Mendez

MKTG 3343

Make the "Whole Foods" at Half Prices

Whole Foods Aims to Cut Prices but Keep Its Cachet

Firms and corporations alike are in the business to increase their profits and sell a product. Whole Foods brand, for example, promises high quality produce for a price. Since it’s founding, Whole Foods has always been recognized for its high prices and organic foods. As others saw that this “organic food” trend was growing, many big box grocery stores opted to include foods like these onto their store shelves. By doing so they also took a cut of Whole Food’s profit, something that is becoming more evident to Whole Foods and its investors. As a company with investors, it had to keep them happy and as such has to find alternatives to keep being profitable.

Although investors are an important part of a corporation we can’t rely on them all the time to remain profitable. A suggestion to Whole Foods was in order to reduce costs whole foods should become reliant on a more cost-effective distribution network that would reduce costs because all of the Whole Foods stock would be the same. This reduction in costs would allow Whole Foods to cut its prices which in turn would supposedly drive consumers to Whole Foods. The issue with this suggestion is that other Big-Box Retailers already offer organic foods at lower prices. Whole Food’s need to understand that their target market is not necessarily the average consumer but those who buy specialty items in their store and go out of their way to shop at the non-traditional grocery store.

While some fear that this change can present a threat to the Whole Foods image others like the “Chief Executive John Mackey said his chain remains a specialty store even as it adopts more conventional techniques”. He claims his store can still remain unique while integrating ideas from Big Box retailers. Although its still not a definitive decision Whole Foods should take into consideration their product, and realize what it is they are truly trying to sell. As Henry Chan, Communications Manager at Ardent Global, once said: “You have to know what it is you want to accomplish first before anything else.” In this case Whole Foods has to define their business model and ask themselves if consumers or investors drive their decisions. 

Photo

WSJ Article

Carlos Gutierrez

MKTG 3343

McDonald's Focuses On Regulars

McDonald's plans on switching their focus from customers who do not eat much fast food to their customers that eat fast food regularly. They are making changes to the menu such as serving breakfast all day long (yay!), any size drink for $1, and debuting "Signature Crafted" burgers to the menu (which will be on the "higher-end" and "customizable"), and switching from frozen beef to fresh beef. McDonald's Chief Executive Steve Easterbrook said each initiative is to "bring the biggest benefit to the most customers in the shortest amount of time.”
Switching their focus on customers who do not eat fast food to their main regular customers is a safer way to go, in my opinion. If they improve and update their food for customers who love their food, it will keep them coming back for more. Trying to attract other customers gives the risk of losing profit.

Snapchat Leaves It to Rivals to Connect the Developing World: Messaging-app creator’s focus on developed world to be tested in first quarterly earnings since IPO

Unlike its competitors such as Facebook or Twitter, Snapchat is not going for worldwide coverage. They believe a focus on high tech countries and fast internet will result in growth. Snapchat already lost around 2.2 billion on its 142 million revenue from costs.
Facebook and Twitter both have ambitions to be out in their world and be the app that everyone uses. One reason behind Snapchat's choice of a focus on first worlds countries rather than a broader worldwide usage is because with the introduction of advance additions like augmented reality, simpler and less sophisticated phones will not be able to work properly. Eventually Snapchat must cave in to the pressure of not trying to globalize, and international users are not going to wait but simply look for another outlet. Facebook has been trying to imitate some of Snapchats features such as stories and filters to countries like China, where Snapchat has neglected to influence with.

By trying to globalize, companies like Facebook and Twitter are losing out on a more specific piece of the market. The target market seems to be good in countries that have the money to spend on highly advanced phones. Eventually similar apps are going to overtake Snapchat because of a bigger market. Although globalizing might not seem like a good idea for Snapchat, in the long run, it might be the better choice for the company to remain competitive. 

Original WSJ Article

Linh Tran

MKGT 3343

Amazon Plans to Unveil New Echo: New device expected to feature screen, phone, videoconferencing capabilities

Amazon is planning on revealing a new Echo, a high tech commercial use machine that allows people to control certain aspects of your home with your voice, that is being released with a screen, different from its predecessors.
There are currently 2 different echoes out, 1 without a screen for $150 and 1 with a camera for $200. It will be announced as early as Tuesday, 5/9/17, which will allow the use of internet phone calls equipped with a touch screen and ways for easier access to information for consumers.
There are other competitors such as Alphabets Inc. Google Home with Alexa digital assistant and Microsoft with their voice controlled speaker Invoke, made by Samsung Electronics Co., however, none of them have a touch screen, yet. Thousands of applications have been added as well from Uber calls to ordering Domino’s pizza.

A touch screen device does sound more appealing than a device that does not have one, and higher competitions do create better businesses because it results in more companies trying to make an even better home controlled AI. Not everyone is going to buy one, but they are certainly the future of autonomy and progression.

Original WSJ Article

Linh Tran

MKTG 3343

Comcast, Charter Strike Wireless Partnership: Cable giants have been moving to grab a piece of the cutthroat wireless business

Comcast Corp and Charter Communications Inc. have signed a partnership with each other. With this partnership, neither companies are allowed to acquire wireless carrier without each other’s agreement. They also want to cut competition by offering packages that would be more attractive to customers in order to keep old customers and gain new ones.

Their goal is to become more competitive among the wireless services industry. Charter plan to offer wireless service next year, and Comcast also plans to offer it soon. By doing this partnership, it allows both Comcast and Charter to work together to figure out what’s good and bad, as well as adding more competition to the wireless market against companies like T-Mobile, AT&T, and Verizon.

This partnership seems like a great idea, but it is also limiting on both companies. However, this partnership will only last one year, so it is good for experimentation on the market. 

Original WSJ Article

Linh Tran

MKTG 3343

Microsoft's New Laptop Aimed At Students

Microsoft as recently unveiled a new laptop that is aimed at students. Microsoft hopes to compete with Apple's Macbook Air with new features. These new features include weighing less, thinner, less expensive, and a longer battery life. All of the devices run Windows 10 S which is a "new variant of Microsoft’s flagship operating system." The new laptop limits users to just the Windows store, but it increases the speed and battery life. If users want to use other apps that are not supported "such as iTunes or Google’s Chrome browser, they can pay $49 to upgrade to the Windows 10 Pro version of the OS sold to businesses." The laptops and app are all updated automatically which will help schools from manually updating each individual device themselves. Microsoft will also be providing new updates to their education version of the Microsoft 365 app and making it available to all "students, faculty, and school staff" for free.

The target market of Microsoft with their new laptop is toward schools that use lots of technology. They have made their product more affordable and have some better features. Competing with the popular Macbook Air with exterior features such as weighing less, thinner, longer battery life, and less expensive making it more student-friendly. Allowing laptops and apps to update automatically will make it easier for schools to use the product without having to worry about manually updating each laptop. These features gives them an advantage over many products.

Coach Buys Out Kate Spade

Coach Inc. is planning to make a deal to buy out Kate Spade for $2.4 billion. Kate Spade is a popular brand among younger customers, and they are seeking them with this deal. They also plan on expanding Kate Spade outside of the United States to reach customers in areas such as China and Europe. The plan is to not cross sell products, but to Kate Spade the way it is such as their product and employees. Both sides can terminate the deal if it is no longer supported, but either way it goes, Kate Spade will be required to "pay Coach an $83.3 million termination fee." 

As stated in the article, Coach once tried to be more on the luxury side and reach "slightly older and wealthier clients with higher-priced bags, creating a gap for younger 20-something shoppers that it can fill with Kate Spade." With this deal, they are able to reach older customers as well as younger customers. This relates to the class because Coach is trying to expand their target market, seeking customers from every age group. They do not plan on cross selling their products, and rather keep them separate from each other. Coach gains profit from both the "slightly older and wealthier side" and also gains profit from the younger consumers of the product.

Virtual Reality Gearing Up to Take the Film Industry by Storm

"Help" by Justin Lin; a virtual reality short.

In show business, virtual reality is becoming the new “ingénue,” quickly spreading its wings to one day become the “movie-going” norm. The virtual reality began emerging at film festivals about five years ago as fascinating demos rather than intriguing narratives. These demos include things that movie executives using them to promote existing franchises and provide interactive extras for anticipated blockbusters. Recently, the entertainment industry has been pumping new levels of talent, money, and time into virtual reality projects due to its rapidly increasing popularity with people. Jon Favreau, director of “The Jungle Book” and “Iron Man” commented saying that we are witnessing the period in time where an idea, a blooming possibility, will come to be the thing we all experience and enjoy one day.

However, there are a number of difficulties and problems that old Hollywood movie magic expertise can be applied to. As a new medium of telling stories, many argue that while it's not necessarily a movie but it's also not a video game; it's something else entirely new, exciting, and its own. Many works would branch into alternate directions all based on where the viewers direct their attention. Writers must do a multitude of math in order to track a single story’s potential outcomes. Actors must perform long and continuous takes without the benefit of edits, remaining visible at all times. And filmmakers must search for new tricks and methods of directing their audience’s focus since they can’t rely on things like close ups and other traditional cinematic techniques to do it for them.

On the marketing end of things, because virtual reality is a creative niche that has yet to be understood, or even fully identified, enthusiasts and directors face a multitude of possibilities and possible challenges. They are unsure of whether their audiences will watch virtual reality movies wearing individual headsets in theaters or if they would rather experience them privately, like video games. They don’t know how long people are willing to wear the headsets in a single setting; considering that there are a number of people that find the 3D glasses to be bothersome and troublesome. It’s also unclear as to whether consumers would want to be able to interact with characters and alter the plots or if they would want to be a ghost-like observer to the story.

The main problems to be faced is gathering sufficient data regarding these unknown areas and finding ways to promote virtual reality experiences to a large enough demographic to turn over a profit. The demographic that would prove to be the hardest to advertise would be the older crowd that prefer “flat” movies with an exclusive observational role.

The A-List Tackles VR by Ellen Gamerman