Friday, November 5, 2010

Chapter 2 Supply & Demand

http://www.edn.com/article/509611-iPhone_4_supply_and_demand_issues_could_hurt_Apple_brand.php

Summary
                It seems that the supply and demands for iPhone 4 is substantially increasing everyday. Accoring to the reports from a company called "iSuppli", predicted that Apple will have issues with supply and demands and it could come back to bite them. Obviously, if this issue occurs than consumers will just go buy other smart-phones instead.
                Apple recorded 600,000 units for the iPhone 4 on the first day of pre-odering.They literally had to stop the pre-orders after just one day. What's even more frustrating is that, Apple has kept pushing back the release date and causing more aggravation towards consumers. Consumers are questioning Apples supply-chain management capability, have begun to leaned towards substitute products (nokia, blackberry, etc). Probably the reason why Apple has been pushing back the date was because they attempted to fix the antenna issue which, causes poor receptions and dropped calls.
                iSuppli stated that Apple will ship approximately 21.7 million iPhone 4s in 2010 which is... a lot. As of today the iPhone is in rank third in smart-phone player, ranking barely below Nokia and Blackberry. iSuppli also noted that, "With threats coming from every corner of the market, Can Apple afford another slip in its supply chain management?"

Connection
                This article relates to what we have discussed about supply and demands. In order for Apple to stay in the competition they need to focus more on consumer needs. If they don't change this behaviour then eventually Nokia and Blackberry will take over the smart-phone competition. I'm sure Apple has no problems producing more iPhones but they're sure smart to make 21.7 million iPhone 4s. Other countries are also demanding for this product as well, in fact there are so many demands, I don't think Apple can keep up.
                It's definitely a consumer behaviour problem and tastes / preferences. However, there are substitute products (again, other smart-phones such as Blackberry and Nokia) but thing is, I personally think Apple "does not care". If Apple does not comply to the demands, they will have to think of a proper solution. I do understand that there are many choices they can do but it may be risk-taking, do they want to increase prices on iPhones or should they produce even more iPhone 4s?

Reflection
                First, the factors in this case are definitely taste and preferences and substitute products. Can Apple attend to consumer behaviour needs? Probably the main reason why is because they don't want to waste so much production cost. Can or cannot meet the demands? I'm positive Apple can meet the demands but again, there is just too much competition out there.
                In my opinion, I think the best solution would be to increase the prices on iPhone 4s. Although I think Apple is not willing to take that risk because they're afraid of losing profit. However, the consumers who need it badly can pay to get it (first come first serve). But, for those who can't afford the price increase will probably have to wait until the price drops.

Monday, September 20, 2010

Chapter 1 : Scarcity In Water

Article : http://www.scidev.net/en/opinions/we-need-a-new-metric-for-water-scarcity-in-africa.html



Summary
 In Africa, citizens are in huge demand for water because of the dry season. There are also other nations and regions dealing with scarcity as well. However, if this cycle of how we consume fresh water continues then we will definitely become limited to having water. One of the most important problems that are causing water to become scarce is due to the climate change and this is a major problem because it cannot be solved. Richard Taylor says "we need a new metric for water scarcity" but I really don't think that's the case here. I don't think a metric would provide enough specific data anyways, so they really aren't brainstorming properly. He also argued that this problem can also be solved by having improved water storage, wastewater recycling or desalination (removing salt from the water to make it drinkable).  He stated that if people fail to adapt to this then their will be consequences. Examples like ruining crops, water diseases, and a big hit in our ecosystem.
       


Connection / Reflection  
 It has now come to my attention that people are now realizing the scarcity of water. I agree with what Richard stated, but as said before, having the idea of having to create a new metric would take awhile plus, it provides data that is not specific. Referring to one of the comments, he stated that "calculating water scarcity by soil moisture is a better idea". This totally makes more sense because a lot of plants out there all have the ability to absorb water with their roots. What ideas would you come up with to make water less consumable? In my opinion, cut less water usage, charge water usage (excessive usage), and making water more expensive in the trade market industries.