Social Media Dilemma

Recently I came across an article in the New York Times that addressed the ethical issues that main social media organizations have been dealing with. The main question that these companies face is how they should react to their customers using their services for political agendas. The growing issue was further aggravated by an incident that occurred recently in Egypt, when Hossam el-Hamalawy, a user of social media web site Flickr, posted under his profile pictures of police officers that were involved in acts of violence against Egyptian activists. He did so in an effort to expose the identifies of the officers that used their authority unduly. In response the management of Flickr removed the questionable pictures under the argument that the web site user's activities were not in compliance of website user agreement. According to the agreement the users can only post pictures that they personally take, and since Hossam posted the pictures that he found on a CD, Flickr claims to have the right to remove the content.

Even though Flickr management is technically correct in this particular situation, a biggest question arises: Should social media companies interfere with the content and opinions of their users (customers) or should the company merely act as a conduit of user interaction. It can be argued that the lack of company's enforcement of guidelines and opinions is what made the social media so popular today. People want to use the services offered by companies like Facebook, Youtube, and Twitter because it liberates them. These companies offer a space where people can express how they feel and connect with others that share their views. Imposing limitations on such freedom could hurt these companies and destroy some of the goodwill that made these services popular in the first place.

On the other hand, an argument can be made that these companies should step in and stand up for the values that they believe in and promote. For example, last week the chief executive of Facebook, Mark Zuckerberg, received a letter from an Israeli minister of diplomacy and diaspora affairs asking him to remove a group profile page for a Palestinian group that is looking for support in starting an uprising in the occupied Palestinian territory, an action that would bring a tremendous turmoil to the nearby countries. The group now has more than 240,000 members. As of right now Facebook management has not taken any action to remove or limit the use of the group page. The management is speculating if shutting the page down would be limiting the definition of acceptable speech.

From the two example sited above we can clearly see that social media has an ability to be a force for good and evil. The users of their services mainly decide how such force will be applied within the bounds set by the policies of these companies. It remains to be seen what course of action companies as Flickr and Facebook will take in this ethical dilemma and what exactly their level of involvement will be going forward.

The following is the link where the original articles was found:

http://www.nytimes.com/2011/03/28/business/media/28social.html?pagewanted=1&_r=1&ref=business

Miami Heat - 7-S Framework Analysis

For this week's journal entry I wanted to use the example of a highly publisized NBA team, Miami Heat, and apply the concepts of the 7-S Framework to their organization.

The Heat are a relatively new organization that was founded in 1988, and you could really argue that in essence it is a brand new organization/team this year due to the heavy "superstar" infusion on the court. Ever since LeBron James announced his "Decision" to join the Heat along with Chris Bosh there has been a non-stop media buzz around the team. So how does this team stack up in terms of alignment and congruence according to the Framework?

Without a question the team possesses some of the best Skills in the league, cumulatively they are probably the most talented team in the league, with arguably NBA's best player in LeBron James. The team's main Strategy is to mainly use one-on-one isolation by LeBron or Dwayne Wade in combination with electrifying fast-breaks for easy buckets, which are often fueled by a high pressure defense. In this the team's Style is unique. Having the star power allows the offence to draw several defenders on a single player, often leaving wide open shooters like Mike Miller, Mike Bibby or James Jones. When those players are hitting their shots, the Heat is very difficult to beat. There seems to be a great deal of alignment between the team's Strategy and Style, the only question is : Can you win a championship using such tactics?

As it has been mentioned before the team's Skills come directly from the superior Staff or the players. It is also worthy to note the exceptional demeanor and expertise of a young coach, Eric Spoelstra. While there has been some criticism of Eric's qualifications and abilities, especially when the team is on a slight loosing streak, he has proven time after time that he is the right man for the job. I believe that his young age and relative lack of recognition perfectly align with the star players that he is assigned to coach. Perhaps having a more notable coach would create some tension of egos between the coaching staff and the players.

It is also important to point out a somewhat unique Structure of the current team. While the management was able to go out and recruit two more superstars on their squad, doing so left them with the challenge of filling up the rest of the roster using very little cash. Therefore, as of right now, the supporting cast of players looks bare, which has caused some in-game issues. This could especially become a problem when the team faces some of the deeper teams, like Boston or Chicago, in the playoffs. While the team is somewhat stuck with this situation for the rest of the season, I am sure that recruiting more valuable players at an affordable price is one of General Manager's primary goals in the off season.

Finally, I believe that the team's Shared Values are in line with the rest of the aspects mentioned above. More than anything, the team wants to win a title. This is what initially led LeBron and Bosh to sign with this ball club. Both players knew that they could not compete for a title with their previous teams. Having such determination adds a significant internal value or synergy to the organization. While it might take some time to work out the kinks , ultimately the team is on the same page and are steadily moving closer towards their ultimate goal with each game.

Apple's IPad - VRIO Analysis

Recently Apple has announced that they are actively working on a new version of IPad . The company is promising that the new device will be thinner, lighter, have a more powerful processor, increased memory, and a built-in camera. In general the Ipad product line has been a very strong source of revenues for the company, resulting in 17% of Apple's revenue in the December quarter. Further the production of an updated device shows that the company is actively striving to capitalize on this new market, despite their setback related to Jobs' health.

In reading this news article I was specifically considering how the VRIO strategy model applies to this situation. The Value of the VRIO model is evident in this case by the tremendous consumer response to the release of the original IPad. Initially there were several critics that suggested that IPad is just a fancy toy that adds no value to a laptop or a smartphone user. On the contrary the IPad has proven to reinvent the way consumers browse the Web and perform other computing tasks.

The Rarity aspect of VRIO is something that will continue to change dramatically throughout this year. Apple was the first main player that decided to explore the tablet market. Additionally a tablet device is still somewhat of a rarity among the consumers. In terms of resources and capabilities, Apple currently holds an advantage over their competitors by providing unique technology and the "original" tablet look. The aspect of Imitation is especially interesting here. As a first-mover, Apple currently has a clear advantage in the tablet market. But recently we can see an increasing number of imitators appearing, with Samsung's Galaxy Tab being actively sold in the market and Dell and HP in the process of releasing their own products. The experts are projecting an overall increase in Apple's sales of IPad in the next year, but a decline in overall market share to less than 50% by 2013. In terms of Organization of VRIO model, there is probably no better company than Apple who could effectively exploit this new market arena. The company definitely has the needed capability and resources to be the market leader. In large part such positioning was achieved through the success of the IPod and IPhone. The dominance of an IPad just seems like the next natural step.

The following is the link where the original articles was found:

http://online.wsj.com/article/SB10001424052748704364004576132643125168876.html?mod=WSJ_hp_mostpop_read

Putting the right leadership in place

Recently Google Inc. has announced that their long-time CEO Eric Schmidt will step-down from the CEO position and Larry Page, the original founder of Google will assume his position. There have been several speculations as to why Schmidt was leaving . Some say that the company wants Page to combat the increasing competition of Facebook and LinkedIn. Others speculate that the censoring results of Chinese Google search has created tension between Schmidt and Page. In order to dismiss all these rumors, Schmidt has made a public statement to address the reasons for change. He simply stated that "the company needs to be run even more tightly" and that he will be staying with Google for another 10 yrs, fulfilling other executive positions.

Reading about this news event got me thinking about chapters on leadership in "Good to Great" and the concept of Level 5 leadership. The book often refers to the fact that before a company even has a strategy in place it is critical to get the right personnel on board, those that have the passion for what they do best. I feel like the recent switch in Google's management is a direct demonstration of this concept. Despite the public comments, Google has been directly competing with social network sites and other technology companies. The expansion of Facebook and the enormous success of IPhone are direct threats to Google's website services and Android phones. Therefore, at this time the company needs a visionary at the helm, and nobody is a better fit for the job than the original founder and the talent behind Google, Larry Page.

It will be interesting to follow the company in the next couple of months to see what kind of impact Larry Page will bring as a new CEO.

The following is the link where the original articles was found:

http://blogs.wsj.com/davos/2011/01/27/schmidt-defends-incoming-google-ceo-page/

http://online.wsj.com/article/SB10001424052748704881304576094340081291776.html

Heritage Nights in the NBA

Normally every NBA team hosts about 41 home games during a regular season. Needless to say, that is a lot of games and managing an acceptable attendance is a daunting task for any team's management (unless you have loyal Boston fans). Recently several teams have been hosting heritage nights as part of the game in order to boost the ticket sales. Among some of the most popular nights this season have been Turkish, Israeli, Filipino, and Latino. Among the participating teams are LA Clippers, Sacramento Kings, and Toronto Raptors. Notice, these teams currently have some of the worst W/L records in the NBA and are especially struggling when it comes to ticket sales.

The results have been tremendous, with some of the teams reporting an increased attendance of 2,000 fans per game. Reading this article has reminded me of the Profit Pools strategy concept that we have covered in class and the importance of finding the right set of activities to exploit the previously unexplored pools of profit. What the management of these teams has been able to do is attract the customer segments that previously have not been considered as potential consumers of NBA entertainment. This new approach has been made possible through the increased number of international players in the league.

Further the management creates a heritage event by arranging the appropriate set of business activities in their venue: ethnic performers during the half time show, selling ethic food and merchandise, and providing the customers with an opportunity to meet the international players before and after the game. Further these events have been promoted with discounted tickets and special offers for future events. It is important to recognize that the profit pools in this and any other industry are constantly changing, and with this latest initiative team management has been able to successfully adapt to the changing environment.

I thought that this was an excellent strategic approach that has allowed the NBA as a whole to further expand their customer and fan base, as well as recover some of the fixed costs that have already been committed as part of the regular season production.

The following is the link where the original article was found:

http://online.wsj.com/article/SB10001424052748703889204576078131537254372.html?mod=ITP_AHED