Assignment – Finding Important Problems: Part 1
Problem 1: Many companies have not upgraded POS systems to accommodate cashless society
Kelly, D. (2017, April 04). In retail? Sales mistakes to avoid. Retrieved January 14, 2018, from https://www.theglobeandmail.com/report-on-business/sales-mistakes-to- avoid/article32730507/
Many companies haven’t upgraded their POS (point of sale) systems to accept digital payments because they do not get a benefit from upgrading. In the end, companies eventually spend money on a device that appeals to consumer’s convenience. Small businesses are heavily hit by these issues because they often cannot afford to pay large amounts for upgraded tech savvy POS systems.
Problem 2: Cryptocurrency is not accepted as a medium of exchange regardless of growing market
Kharpal, A. (2017, December 26). After the cryptocurrency bubble bursts, we may see a legitimate valuation for some coins. Retrieved January 14, 2018, from https://www.cnbc.com/2017/12/24/once-the-cryptocurrency-bubble-bursts-there-may-be- real-innovation.html
Lam, E. (2017, December 15). What the world’s central banks are saying about cryptocurrencies. Retrieved January 14, 2018, from https://www.theglobeandmail.com/globe- investor/investment-ideas/what-the-worlds-central-banks-are-saying-about- cryptocurrencies/article37341733/
Bajpai, P. (2018, January 18). The 6 Most Important Cryptocurrencies Other Than Bitcoin. Retrieved January 18, 2018, from https://www.investopedia.com/tech/6-most-important- cryptocurrencies-other-bitcoin/
Crypto currency is still not accepted as a medium of exchange in most companies around the world however, the purchase of crypto currency by public is at its peak. While the tech lovers of the public are investing high amounts in crypto currency, many investors and bankers are highly skeptical of the survival of cryptocurrency calling it a bubble that is going to burst soon. There is an awkward phase where some companies are brave and accepting payments in cryptocurrency while other companies debating on whether they should bandwagon the techies or listen to investors on wall street. Cryptocurrency is seen more of a store of value rather than a medium of exchange.
Problem Importance (via Factiva —The Globe and Mail / Investopedia)
The articles above are important in understanding the growing rate of crypto currency and the affect it has on surrounding economic businesses. They further explain the overview of how several large banks around the world are recognizing the downsides of cryptocurrency despite potential upsides. It supports the fact that bitcoin is not widely used as a medium of exchange due to uncertainty and fraud. Deregulation is attracting more investors which can be explained by the recent hikes in the growth of cryptocurrency over the years. While identify theft and counterfeit can be greatly reduced with this type of system as customers do not have to share personal data when making purchases, there is no system in place to prevent human error, technical faults or even fraud. According to the research, 17% of shopping cart abandonment is due to security concerns over payment, with an additional 18% due to excessive payment security checks (Lam, 2017). This is an important issue as cryptocurrency is currently a huge trend where people investing in it are now looking towards additional applications such as taking out second mortgages and selling their assets to get money to invest in this façade. One thing I found interesting was how Ray Dalio, founder of Bridgewater Associates, explains that in order for something to be determined as currency, it needs to have a medium of exchange and a store of wealth. This comes to realize that Bitcoin cannot be used when purchasing majority of things. The volatility of bitcoin is so great that it is not an effective store of value. He furthers his explanation saying that it is a highly speculative bubble based on block chain. A speculative bubble is created because of investors who either decide to buy and sell immediately, those who are trying to figure out the intrinsic value or are following this trend of crypto currency (Bajpai, 2018). The volatility stands as an impediment to the usage as a medium of exchange. There are many issues with cryptocurrency which include high volatility, undetermined intrinsic value, failure of use as a medium of exchange/store of value, deregulation, and wide range of crypto currency.
Problem 3: Movie theatre prices have increased however moviegoers have decreased
References Richter, W. (2018, January 04). Movie theaters are losing their battle to avoid the retail apocalypse. Retrieved January 14, 2018, from http://www.businessinsider.com/movie- theaters-losing-in-brick-and-mortar-meltdown-2018-1
The average price of movie tickets has jumped 53% from 5.81 in 2002 to $8.90 in 2017 (in the US). Fewer people are going to movie theatres and prefer watching/streaming movies online. When comparing the box office for 2017, the numbers are deceiving in the high millions however, when comparing the number of tickets sold there is a drastic falling trend. Statistics show ticket sales falling from 1.58 billion in 2002 to 1.25 billion in 2017, making a 21% decline creating a record of being the lowest since 1995.
Problem 4: Car dealership equipment needs to be more regulated
CTV Toronto: Car falls off hoist during oil change. (2016, April 27). Retrieved January 15, 2018, from https://www.ctvnews.ca/video?clipId=858092
Kubinec, V. (2015, May 12). Couple shocked dealer didn’t disclose damage to ‘new’ car. Retrieved January 15, 2018, from http://www.cbc.ca/news/canada/manitoba/iteam/couple-shocked-dealer-didn-t-disclose- damage-to-new-car-1.3069637
From my experience working at a Toyota dealership in Toronto, I have noticed that dealerships have old equipment that needs to be replaced. For example, my dealership’s carwash was defected leaving many customer’s cars damaged and increasing costs for the company. Regardless of employees knowing that the car wash was faulty, they felt pressure from advisors to please customers and wash it anyways. A typical car wash is supposed to suit all cars and all models however, my location had restrictions. The dealership doesn’t get any benefit from washing the cars unlike gas station car washes which charge you. Dealerships have less incentive to spend money on a new car wash that does not generate any revenue. If old equipment was replaced then this wouldn’t be an issue and customers would leave positive reviews. There are many records of faulty equipment at dealerships leaving angry customers who were not compensated fairly.
Problem 5: Start-ups are being bought by tech giants —Facebook, Google, Amazon threatening to create a monopoly
Dave, P. (2017, September 01). Dollar Shave Club succeeded with razors, but the rest of the bathroom is a challenge. Retrieved January 16, 2018, from http://www.latimes.com/business/technology/la-fi-tn-dollar-shave-club-unilever- anniversary-20170828-htmlstory.html
Etherington, D. (2017, August 10). Lyft acquires two growth-focused startups to drive more sign-ups. Retrieved January 17, 2018, from https://techcrunch.com/2017/08/10/lyft- acquires-two-growth-focused-startups-to-drive-more-sign-ups/
The tech industry is booming, and tech start-ups are on the rise. However, there is a trend of start-ups being acquired by tech giants. Once popularity rises for these companies, they are bought out for millions and billions of dollars. Tech start-ups would rather sell to major companies rather than competing with them as they have already captured a large portion of the market.
Problem 6: Airline Wi-Fi is insanely slow nonetheless internet plans are very expensive
Gilbert, B. (2016, January 29). This is why your flight’s expensive WiFi is so terrible. Retrieved January 17, 2018, from http://www.businessinsider.com/why-is-in-flight-wifi-so-bad- 2016-1
Bryan, A. S. (2014, April 14). Airlines Are Spending Millions To Win Over Customers With High-Speed WiFi. Retrieved January 17, 2018, from http://www.businessinsider.com/r- faster-wi-fi-on-flights-leads-to-battle-in-the-sky-2014-14
The airline internet industry is dominated by a company called Gogo. Gogo offers various packages that allow passengers to choose from according to their internet use. However, passengers complain that the quality of the internet is very slow equivalent to the speed of a cell phone data plan. Since Gogo is one of the only companies that provide internet, they have the advantage to charge high prices. They have the technology to increase the efficiency of the internet but due to its high costs they choose not to upgrade.