Companion phones – the newest disruption in the business segment?

22

October

2018

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The newest development in the smartphones market are the introduction of ‘companion phones’. Whereas market leaders in the smartphone segment Apple, Samsung and Huawei have produced increasingly bigger smartphones over the last decade, the newest trend in smartphones could be extremely small phones. A newly launched phone, using the brand name Palm, is the size of a credit card and is only 5.5 millimetres thick. It offers most functionalities of a normal smartphone, including two cameras and making use of the 4g network.

 

The Palm phone is promoted as a ‘companion phone’, a small phone as a complement to your main smartphone. In its marketing, Palm claims that the companion phone enables people to take a break from their main phones, despite being a fully functioning mobile device of its own.

 

I think that companion phones actually have great potential, although I do believe it is promoted wrongly. I do not think people desire a second phone to carry around for the same purpose as their main phone. However, I do believe companion phones could disrupt the business phone segment. As many young professionals aim to keep up a strict distinction between life and work, they tend to keep separate phones for work and private use. However, having to carry around two separate phones brings along some inconvenience. Therefore, due to the small and thin design of Palm, ‘companion phones’ could be an excellent alternative as a business phone. Moreover, as business phones are mostly just used to call, they require less features than regular smartphones, increasing the potential of ‘companion phones’.

 

‘Companion phones’ could be a new opportunity in the saturated market of smartphones. Besides Palm’s version, other ‘companion phones’ are entering the market as well. NTT Docomo, Japan’s biggest telecoms firm, launched their own companion phone only a few days after the launch of Palm. And who knows, in a few months, we might just expect the launch of the ‘companion phones’ of Apple and Samsung.

 

 

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Author: Koen Walsteijn

519183kw

Getting paid for reviews

21

October

2018

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In the last few decades, retail has shifted from physical stores to e-commerce. During the rise of this online retailing, companies as Amazon have captured whopping market share across almost all segments of retail. Amazon opened up its platform and allowed other retailers to offer their products on their platform. However, along with the ascent of online shopping, several problems arose. Maybe the biggest flaw of the digital transaction of retail products, is product and seller uncertainty.

 

As discussed in the fifth lecture of the course Information Strategy, interaction per platforms as Ebay and Amazon give rise to information asymmetry problems as moral hazard and adverse selection. Buyers are uncertain about the quality and performance of products (product uncertainty) and distrust sellers’ intentions to truthfully promote their products (seller uncertainty). To overcome above-mentioned problems, reputation systems were implemented to platforms as Amazon. Through reviews and ratings awarded to sellers, buyers are better able to judge whether sellers are trustworthy.

 

Unfortunately, according to the recent research of consumer group Which?, these reputation systems are corrupted quite easily. Which? claims that online sellers on Amazon’s platform are offering people free goods in exchange for positive products reviews. In his research, an Which? investigator joined several “rewards for reviews” groups and was instructed to give a five-star review in order to receive full refunds for ordered products. Additionally, in an investigation of BBC 5, similar results were achieved as they were able to buy false five star reviews on the supposedly trustworthy review website Trustpilot.

 

Although Amazon claims to not tolerate false reviews and threatens to terminate accounts supplying false reviews, these findings do indicate the shortcomings of retail platforms as Amazon. If Amazon is not able to counter the threat to the legitimacy of its reputation system, they could face an enormous backlash in its competitiveness and growth, similar to what Ebay experienced in 2004 when consumers lost faith in the trustworthiness of products sold on Ebay’s platform. Amazon would be wise to take this threat seriously and respond quickly and adequately.

 

 

https://www.bbc.com/news/business-45916368

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Author: Koen Walsteijn

519183kw