Apple Takes on HTC; Consumers Lose

Posted on June 7, 2012 by DZapata

What’s the best path to killing a small competitor?  Lawsuits, lawsuits, and more lawsuits.

That’s the approach which Apple has taken against HTC, a small competitor which produces Android platform smartphones which compete directly against Apple’s iPhone.

Why would Apple, which has market dominance in the smartphone arena as well as a huge market cap, concern itself with HTC?  I’ll tell you why.  They make a better phone.

Let’s go back two years ago at this time.  iPhones are becoming more popular and are successfully converting users from conventional cell phones to smart phones.  The newest version is revealed amid great buzz, thanks to the marketing genius of Steve Jobs and company.  The phones get great reviews overall; the screen is attractive, it has a front and back camera, and the display movement is smooth.  However, the drawbacks include a low battery life, a substandard megapixel camera, and any potential user is limited to the AT&T network – a not inconsequential barrier for many consumers to stomach.   Many consumers are not happy with Apple’s “walled garden” and do not want to be told who their provider should be.

At that time, HTC comes out with the EVO 4G on the Sprint Network.  This phone is phenomenal.  It boasts an 8 megapixel back camera, an impressive 4.3 inch display, a kickstand, and all the functionality that comes with the latest version Android operating system.  Since it is Android, it syncs contacts and calendar entries seamlessly with Gmail.  It also has access to Sprint’s 4G network (unavailable at that point in time from AT&T).  Streaming data and downloads are fast!  (I am going to come clean here and let you know that I own this phone.  I not only own it, but I may have actually stood in line to buy it on the day it came out. The reviews were that good.)  What was the main drawback to this phone?  Battery life.  It was definitely substandard, but at least I could buy aftermarket batteries on eBay (2 plus a charger for $10) and switch them out if the phone started to die when I was away from a charger.

Contrast that to the iPhone 4, which was also released in June of 2010.  The new iPhone had a new attractive “retina” display, but still boasted only a 5 megapixel camera and a new design: the wraparound “band antenna” which sure looked cool, but turned out to cause more dropped calls from hand interference.  (Although being that it was on the AT&T network, who could have really told the difference?)

What’s happened since that time is that Apple has continued to move forward.  They improved battery life, introduced the Siri personal assistant feature, and upgraded the camera.  They also opened up the iPhone to other providers such as Verizon and Sprint – removing a HUGE barrier for consumers that wanted an iPhone.

HTC has done its thing as well.  They’ve offered various Android phones through all of the major carriers.  None of the phones that they offered in 2011 had a tremendous amount of innovation, but they still had good reviews.

Here’s my point:  I believe Apple is a better company, and the iPhone is a better product, BECAUSE of competition from HTC.  HTC experienced strong growth due to robust sales of its Android smartphones – arguably some of the best on the market.  Would Apple push itself as hard without serious competition?  I would argue that they would not.

HTC recently announced that they were releasing the latest version – the HTC EVO 4g LTE.  This is the next version of the EVO and reviews say that it is a worthy successor to the original.  Some of the features include longer battery life, a 4.7 inch display screen, a dedicated camera button, and refinements in the camera functionality.  That sounds great – if I am lucky enough to get one.  Apple has again filed an injunction for copyright infringement against HTC and Samsung.  (This is the new normal; seems every high tech out there is suing each other for something.  Take a look at Google, for example… most of their recent acquisitions has been strictly for the patent rights.)  Both HTC and Samsung deny that they they have committed copyright infringement.  But for a smaller player like HTC, the resources necessary to wage a Samson versus Goliath battle might be enough to knock them out of the game completely.

It’s not only a shame that Apple isn’t looking at HTC functionality as a catalyst to drive further innovation for the iPhone; it’s a travesty that ultimately punishes the consumer.  When the latest iPhone version came out, I was one of the consumers that considered switching away because of the innovation in the Siri app once my plan expired.  Now, I will do everything in my power to never buy an iPhone.  I highly doubt my decision will make a dent in Apple’s market share – but I wonder if there are others who feel the same?

 

 

Posted in Business World, Random Musings | Leave a comment

Are We Green? The Foodservice Compostability Craze

Posted on August 24, 2010 by DZapata

While I applaud the move towards being more environmentally friendly, often times the reality does not match up with the idealistic intentions. Case in point: the race to buy compostable packaging for takeout foodservice applications, such as cutlery, hot cups, clear cold cups, and other hingeware, deli containers, and food packaging.

These come in many forms.  Clear cups and packaging are made from PLA (poly lactic acid) clear plastic, which is derived from corn.  Paper hot cups lined with PLA are compostable.  Molded fibre plates and bowls (similar to the “Chinet” brand) previously made strictly from wood pulp are made from bagasse, the fibrous by-product from sugar cane.  Lately I have seen an influx of molded fibre products made from wheat.  Disposable forks, knives, and spoons manufactured from a potato starch base or a PLA blend are also available.

But is it recyclable? (That’s the same thing, right?)

Well – no, they are not the same.  So let’s define them for what they are:

Recyclable products are products which can be reclaimed and be re-pulped, melted, etc. and eventually transform into another useful product.  This allows the material to be utilized again and be diverted from a landfill.

Compostable products are designed, according to ASTM standards, to “…  compost satisfactorily..  at a rate comparable to known compostable materials. Further, the properties in the specification are required to assure that the degradation of these materials will not diminish the value or utility of the compost resulting from the composting process.”  In short, these items are supposed to be able to break down under composting conditions (heat, air, and moisture) at a rate similar to paper without releasing toxic materials.

Here’s the rub:

Unless the compostable items are re-captured, segregated, and specifically sent to a composting facility – there is absolutely zero benefit to using these products.  Compostable items will not break down in a landfill; the conditions do not permit.  We’ve all heard about how newspapers and phone books have been dug up years later from a landfill, intact, and in readable form. Compostable products are no different.

I witnessed this first hand while attending a university of higher education which even had an office of sustainability.  The kiosk sold pre-made salads which were proudly packaged in a clear compostable container.  If you weren’t sophisticated enough to notice the packaging, the label on the container trumpeted its “green” packaging.

So – how many composting bins were there nearby?

You guessed it:  ZERO.

Not one compostable bin anywhere in the entire building.  Multiple trash and recycling bins were stationed on each floor, but not one for composting.

Even with the best intentions, buying compostable products does nothing if it is not treated as a holistic cradle-to-grave solution.  Compostable products are priced at a premium, running anywhere from a 20% – 300% higher price than traditional disposables.  Why should consumers and businesses bear significantly higher costs?  It’s ludicrous to spend that type of money just to make yourself feel better, or worse, to deliberately “greenwash.”

So I did a little digging.  I live in California, and we like to believe that we’re ahead of the curve from an environmental standpoint.   I also live in Alameda County, one of the more populous counties in the Bay Area, home to Oakland.  We must have many composting facilities here, right?

Umm… nope.  Try zero.

So I checked Contra Costa County.  Nada.  San Mateo County?  Nope.

Santa Clara County does list three composting facilities, so at least I know the university probably can gain access to those.

My point here is not to throw stones at the green movement.  I am truly glad that it is not a fad; this time the movement really seems to be getting traction.  However, different capabilities develop at a different rate.  It seems that business has figured out how to monetize “green” environmentally friendly packaging before we have figured out how to get a sufficient composting supply chain in place, if you will.  So I will continue to embrace the green movement with a healthy skepticism.

Posted in Business World, Green | 3 Comments

Marinated chicken breast with veggie quinoa

Posted on August 22, 2010 by DZapata

Recipe:

Boneless skinless chicken breasts

Zesty Italian dressing

quinoa

vegetable broth or bouillon cubes

olive oil

asparagus

onion

red bell pepper

artichokes

salt

pepper

(optional) sun dried tomatoes, preferably packed in oil

Marinate chicken breasts in italian dressing for at least an hour.  Rinse quinoa under cold water; put in rice cooker or pot.  Add two parts vegetable broth to one part quinoa.  Cook like you would rice… works well in rice cooker, or cover pot and cook on stove until water is absorbed.  Grill chicken breasts until cooked.

Wash and trim asparagus; brush with olive oil, salt and pepper,  and grill.  Chop onions and red bell peppers; saute in pan until onions are translucent.  Add cooked quinoa, asparagus, artichokes, and sliced sun dried tomatoes.  Combine and cook for a few minutes until dish is uniformly heated.  Serve quinoa mixture on plate with chicken breast.

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Greenwashing: How do you manage green “spin”?

Posted on August 22, 2010 by DZapata

The environmental marketing firm TerraChoice gained national press coverage for releasing a study called “The Six Sins of Greenwashing” which found that more than 99% of 1,018 common consumer products randomly surveyed for the study were guilty of greenwashing. A total of 1,753 environmental claims made, with some products having more than one, and out of the 1,018 studied only one was found not guilty of making a false or misleading green marketing claim. According to the study, the six sins of greenwashing are:

Sin of the Hidden Trade-Off: e.g. “Energy-efficient” electronics that contain hazardous materials. 998 products and 57% of all environmental claims committed this sin.

Sin of No Proof: e.g. Shampoos claiming to be “certified organic”, but with no verifiable certification. 454 products and 26% of environmental claims committed this sin.

Sin of Vagueness: e.g. Products claiming to be 100% natural when many naturally occurring substances are hazardous. Seen in 196 products or 11% of environmental claims.

Sin of Irrelevance: e.g. Products claiming to be CFC-free, even though CFCs were banned 20 years ago. This Sin was seen in 78 products and 4% of environmental claims.

Sin of Fibbing: e.g. Products falsely claiming to be certified by an internationally recognized environmental standard like EcoLogo, Energy Star or Green Seal. Found in 10 products or less than 1% of environmental claims.

Sin of Lesser of Two Evils: e.g. Organic cigarettes or “environmentally friendly” pesticides, This occurred in 17 products or 1% of environmental claims.

It is no wonder that there is significant confusion about what is green, and what is “spin.” This is a subject that I struggle with at the workplace. Part of what I do is to source out green cleaning supplies, from towels & tissue, cleaners, floor care, etc. It seems that every product line has a different certification (Green Seal, DFE (Designed for the Environment), EcoLogo, just to name a few.) How do you know which is best?

I think part of sorting through the confusion is about education. Here’s a few interesting tidbits that I have learned:

1) Disinfectants must be EPA registered in the State of California, among other states. A few years back, the EPA banned allowing any outside certification other than EPA on its registered products. This means that the Green Seal certified disinfectants that my company carried could no longer carry the Green Seal certification. This included our most popular and effective disinfectant, H2Orange2 117, which was a hydrogen peroxide and orange oil cleaner/disinfectant. Without that outside certification, it makes it difficult to back up the claims that this product was a superior choice over the standard toxic disinfectants.

2) Green Seal is an outstanding company with strict standards for environmentally friendly certification. They are also a “for profit” outfit. Nothing wrong with making a profit; however, they charge about $750 for certification on every product PLUS a yearly fee to use their logo. Those additional costs are ultimately borne by the consumer… and does having a product with a Green Seal certification make it more environmentally friendly than DFE? I would argue that it does not, because DFE has even more strict standards for certification. Since DFE is an EPA designation, it doesn’t have the marketing machine behind it in contrast to Green Seal.

3) Compostable products: This is my latest “green” pet peeve. My company does supply compostable products, from PLA (corn based plastic, poly lactic acid) cups and potato starch cutlery. These items have outside certifications for compostability, and the products are more expensive and carry a premium price. However, many consumers think that switching from traditional disposables to compostable is an environmentally friendly decision. NOT SO!!! Unless the compostable products are segregated and collected to go to a composting facility, there is no value whatsoever in using these items. Even newspapers have been dug up years later in a landfill. Compostable items are no different… in a landfill, they will not break down because they do not have the combination of heat, air, and water required. Compostability requires a cradle-to-grave plan to be effective.

In shore, consumers need to be very careful when sorting through the plethora of green claims. There are many competing “standards” which makes it difficult to know what is real and what is not. Reading labels, learning the details on the certifications, and a little common sense should help when making a green buying decision.

Posted in Business World, Green, Random Musings | Leave a comment

I BELIEVE.

Posted on May 7, 2010 by DZapata

Yes, I know.  I saw the score.  The score seemed more like a football game initially (6-0?) or maybe even a baseball game by the end.

I had no illusions that the Sharks were going to win last night in Detroit.  Seriously; check out my facebook page if you don’t believe it.  The Red Wings are a good team.  I doubted they would allow the sweep on their home ice.   I’ve said it all along… if any team could fight back from being down 3 games to nothing in the series, it’s the Wings.  They don’t give up.  They rarely back down.

but-

I STILL BELIEVE.

Case in point:

1)  The Sharks look better this playoff season than they ever have.  Period.  End of story… I challenge you to name another time when they were consistently firing on all cylinders they way they are now.

2)  All of the lines are strong.  It’s pretty easy to put out a good first line; it’s not so easy to put out a strong second, third, and fourth.  The kids have stepped up and there has been scoring from the less-than-household names (Logan Couture, Helminen) not to mention Pavelski (has this guys stepped up or what????) Detroit has had to adjust its lines accordingly which allowed the big names to score (Marleau, Thornton, Heatley, and Setoguchi).  The defense has been amazing; Blake and Boyle have performed very well.   All this means that the Sharks are not a one-line or even a one star team.

3)  Goaltending has been excellent.  Nabokov has been amazing; I can’t even really blame him for what happened in Detroit last night.  Many of those goals weren’t his fault… and I have to say that Franzen was just having an amazing night.

4)  This team has its head in the right place.  Nobody seems to be obsessing about any particular play or game… they are taking it one game at a time, not getting too far ahead of themselves, and have not (to this point) allowed a loss or an embarrassing play to derail their vision.  The way the team performed after the freak Boyle goal in OT for the Avs… they shook it off and came back to play hockey.  Their way.  No looking back.  And the results speak for itself.

Let’s put it in perspective:  it was one game.  On one night.   You know how they say in football that any team can beat another time on any given Sunday?  Well, that’s true some times in hockey too.

They are still up three games to one.  They won those games based on their heart, their skill, and their performance on the ice.  This is not a team that has made it to this point because of luck.  It’s their time.

I believe.

Posted in San Jose Sharks | 6 Comments

Shark smuggling??

Posted on May 5, 2010 by DZapata

I have to ask…

how crazy do you have to be to think about smuggling a three foot shark in your pants?

Or how about this:

What would possess someone to SEW an octopus into the mouth of a dead shark… then smuggle it in to the Shark Tank and throw it over the glass??

http://abclocal.go.com/kgo/video?id=7420951&syndicate=syndicate&section=facebook

My favorite part about the link is that this guy says straight away that he doesn’t want to be identified because he’s afraid of losing his season tickets.  So his face is sorta kinda shadowed, which makes it hard to see.

Until you see the stills of him holding the shark.

I think if I bumped into this guy in section 114, I would definitely recognize him.  Let’s hope he wasn’t also in the witness protection program.

Posted in Humor, Random Musings, San Jose Sharks | Leave a comment

SHARKS WIN!!!

Posted on May 3, 2010 by DZapata

Sharks are up 2-0 in the series!!!  Woo-hoo!!

Posted in San Jose Sharks | Leave a comment

Starbucks Has The Best Customer Service. Period.

Posted on April 27, 2010 by DZapata

I have had a long history with Starbucks.  Many know that my company had done business with Starbucks for over 12 years. I have dealt with and personally been to the corporate office in Seattle on a business level.  Unfortunately our business relationship went away a few years ago, but I am still (on a personal level) a loyal repeat customer.

Starbucks has taken a beating over the last few years.  After years of almost unrestrained growth, they had to cut back and close low performing stores; they had to do layoffs; in short – their business finally seemed to be in sync with the macroeconomic climate.  They faced increased competition from McDonalds, Dunkin’ Donuts, and many others which tried to emulate the Starbucks product at a lower price point.  Starbucks went through a period of turmoil as they tried to navigate the changing competitive climate.  In print and also in my business classes, I heard over and over again about how “Starbucks has lost their way.”  Their positioning seemed unclear and they sent mixed messages.  Were they concentrating on the premium coffee market?  Was it about the “experience” in the store?  The wi-fi?  Were they becoming commoditized, with a location on every street corner, and a kiosk in any retail location they could negotiate a program with? You could buy their coffee beans anywhere – first in their retail locations, then major grocery stores such as Safeway, then even at Costco.  Then they sold breakfast sandwiches.  Then they introduced Via – an instant coffee?  Seriously – what are these folks thinking?  Exactly why did they think they could sell a cup of espresso/coffee/etc. for over $3 a cup and think people would return?

I’ll tell you why.

It’s the customer service.

The product is great.  No doubt about it; I have tried to make my morning mocha at home and I can’t duplicate the same taste.  I can come close but it’s not quite the same.  So I grant you that the product is a differentiator in itself.

But the real secret to Starbucks is this.

pssst….

(this is groundbreaking)

the customer is always right.

Yes, I know… pretty elementary, right?  Not something you need to spend $70K on an MBA to figure out.  But that’s what they live and breathe, and let me tell you – it works.

Over and over, I have witnessed and personally experienced the best customer service ever.  I frequent multiple locations – and in EACH location, there is usually at least one associate who remembers my name and my drink.  And that’s before I whip out my personalized Starbucks card.

They go way beyond the expected.  Case in point:

1)  After purchasing a clear reusable cold cup which I dragged with me faithfully to get my morning mocha, my husband accidentally put it on the bottom rack of the dishwasher.  The rim warped slightly and the lid would no longer fit.  I sent an email to corporate and they sent me a gift card for $15 to cover the replacement of the cup.  No questions asked; no request to ship back the cup.

2)  A few weeks I saw them make up a large order.  This guy was obviously going to bring it all back to the office; he had ordered at least 8 drinks.  After making up the order and placing the cups in the carry trays for him, they offered to help him to his car.  He declined.  He stacked the trays and – you guessed it – he dropped the whole lot in the middle of the store.  During the morning rush… in the middle of the crowd.  Without hesitation, they started to mop up the mess and gather the cups so that they could re-make the drinks for him.  No additional charge; no questions asked;  NO snarky attitude or even a roll of the eyes.  Incredible.

3)  Yesterday I got my drink at lunch time at the location near my office.  They see me there frequently, as I often end up doing homework on my lunch break on my laptop using their wi-fi.  I looked at my receipt and noticed that the associate had forgotten to give me my .10 discount for bringing my reusable cup.  No big deal; not the end of my world.  Today – I walk in the same store and hand over my cup.  The associate says to me – hey, I’m so sorry for not giving you the discount yesterday.  Your drink is on us.  I tried to argue but she would not charge me for my drink.

Believe me, I have way more examples.  The thing about Starbucks is this:  this addiction to customer service permeates every interaction that they have with their customers.  I have rarely seen someone working there who is unfriendly or sullen.  I’m usually greeted with a smile – no matter what store I am in, whether they recognize me or not.  They never give me grief for being high maintenance (would you want to make me a nonfat Grande 3 pump mocha with extra ice in a Venti cup?  No, I thought not.)

Starbucks charges more for its drinks but they understand their value proposition.  They get it.  So do I.

Posted in Business World, MBA program, Random Musings | 1 Comment

10 MORE Ways To Know You Are Dating an MBA Candidate

Posted on April 26, 2010 by DZapata

By popular demand….. :)

  1. Tries to figure out the value-cost wedge and figure out what portion each shares.
  2. Your date claims insufficient “bandwidth” to get together.
  3. Talks about having children in terms of brand extension.
  4. Thinks that it is acceptable to say anything snarky as long as it’s done with a smile.
  5. Describes your outfit for the evening as “overvalued.”
  6. Describes your union in terms of the “synergies” created.
  7. Looks at marriage in terms of the net present value of future earnings.
  8. Figures out the return on investment for the wedding expenses.
  9. Doesn’t describe the fight you had last night in terms of problems, only challenges and opportunities.
  10. Doesn’t multitask; claims to be “cross-functional”
Posted in Business World, Humor, MBA program | 1 Comment

15 Ways to Know You’re Dating an MBA Candidate

Posted on April 26, 2010 by DZapata

1.   Calls the first month of your relationship a “preliminary assessment period.”

2.   Talks to the waiter about process flows when dinner arrives late.

3.   Congratulates your parents for successful value creation.

4.  Your Valentine’s Day card has bullet points.

5.   Refers to lovemaking as a “win-win.”.

6.   Tries to re-org your family into a “team-based organization.”

7.   Refers to your date as “testing marketing methods.”

8.   Writes executive summaries on your love letters.  

9.   Ends the argument you have by saying “let’s talk about this offline.”

10.   Refers to your relationship as investigating “sustainable competitive advantages.”

11.   Insist you do market research before getting pregnant.

12.   Says your “deliverable” for Sunday evening is clean laundry and paid bills.

13.   Asks the waiter what the restaurant’s core competencies are.

14.   Explains feelings for you with Porter’s Five Forces as a framework.

15.   Conducts a performance review after having had sex with you.

Posted in Humor, MBA program | Leave a comment