hello! (: yep i agree with nic, bts just ended so let's have some light hearted stuff to enjoy! here are some comics i found. have fun reading. :D






























- yilina

Econs made fun!!!

Okay, i guess most of you are getting bored after the block tests so here are some videos for fun!

I know our econs rep looove WoW(World of WarCraft) so this video is for him!!
A bit on demand and supply(but totally not much link to our econs D&S though ><)! Haha



I guess some of us forgotten wads elasticity and how to sing the elasticity song, so i shall post it here as well =)



This 3rd video has a lot of gore, so disclaimer in watching it!!!
Btw, it shows Wal Mart Monopoly in America ^^



Enjoy the videos! =P

-nicholas-

Best Business Idea 2008 - Team Qatera

Hey everyone! This is the last day of posting on the blog! So post whatever you can! We felt that we should share our experience in the BBI 2008. So here is the plan that we had for our water purification startup company, Qatera.


1 CORPORATE INFORMATION

1.1 Corporate History
Qatera is a leading portable water purification company based in Singapore that utilises extremely portable filters for complete removal of colour and bad taste of water. With our advantage in research and development, Qatera works with top quality scientists and engineers to develop and continually improve our first product, the PuriBottle™.

Qatera is founded in 2008 by a group of innovative and enterprising graduates who with their enthusiasm and experience will combine their skills and expertise to drive our company to greater heights.

1.2 Vision
We strive to be a leading contributor in realizing one of the United Nation's millennium development goals to reduce by half the proportion of people without sustainable access to safe drinking water by 2015.

1.3 Mission Statement
Qatera is a leading water purification company that seeks to gain global recognition in provision of water purification solutions that would alleviate the problem of inaccessibility to potable water worldwide.

• With constant value innovation, we aim to create a leap in value for both ourselves and our customers.
• By vigilantly creating blue oceans to open up uncontested market space, we aim to make the competition irrelevant to generate a substantial following of customers.
• By offering a strategic price at a set cost for our products, we would ensure substantial yet highly achievable profits for our investors.

1.4 Board of directors

Chen Jin Yang (Mr)
Chief Executive Advisor
He is responsible for the overall strategic business management and business development of the company.
With prior knowledge in business strategies, he has the required knowledge, leadership skills and capabilities to lead the rest of the team.

Darren Sun Delai (Dr)
Chief Research and Development Officer
Dr. Sun holds a Ph.D. degree from The University of New South Wales, Australia. He has 15 years experience in the development of novel technologies for the environmental remediation, in particular industrial solid waste treatment and reuse with encapsulation/stabilization, recovery and separation technologies, and wastewater treatment with biological, chemical and physical technologies. He is a member of International Water Quality Association. He edited or co-edited a few conference proceedings, Journals, and authored or co-authored more than 100 scientific publications.
His research interest are:
Multifunctional TiO2 nanofiber/tube membrane
Membrane Technology for Water and Wastewater Treatment
Photocatalytic Oxidation Technology for Water Purification
Membrane Bioreactor
Industrial and Hazardous Waste Treatment and Management

Guo Zi Ming (Mr)
Chief Financial Officer
He is responsible for the company’s finance and projections, administrative functions of the organisation, accounting and taxation matters. He will ensure that all Board decisions are followed.

Steve, Wah (Mr)
Chief Marketing and Human Resource Officer
He is responsible for the sales and marketing of our product and services. He will also take charge of recruitment, staffing needs, retention and training.
He was previously a director of an IT multimedia company, SMS2All Pte Ltd, steering the marketing and business development department of the company and had effectively achieved a net margin growth of 300% in 2 years. He is also the co-founder and marketing director of the Hive Backpackers Hostel, a successful venture that achieved breakeven in 6 months of operation through strategic diversification.
He holds an Honours Degree in Mechanical and Aerospace Engineering and a minor in business administration from Nanyang Technological University.

Lieutenant Colonel (NS) Lim Kwang Keat (Mr)
Manager, Volunteer Department
Red Cross, Singapore
Chief Logistics Officer
Mainly involved in logistics matters, he was previously the Head of Medical Logistics in the SAF Medical Corps. He has supervised a team of people, ensuring that tasks are completed with quality standards, time and constraints and with budget requirements.
He is presently the manager of the Volunteer Department of the Red Cross, Singapore. He provides invaluable support and advice to many students from various uniform groups such as Red cross and St John Ambulance Brigade. He has also handled various humanitarian projects and has a vast network with many disaster relief organisations worldwide.

Lieutenant Colonel Dr. John Boscow (Dr.)
HQ SAF Medical Corps
Independent Director, Advisor
A professional, qualified doctor of the HQ SAF Medical Corps, he has attended and presented in various military medical conferences, both local and overseas. He is presently working as a safety officer in SAF Military Training Institute. He is a great asset to our research team.
He holds a degree in medicine from the National University of Singapore.

Lieutenant Colonel (NS) Chang Meng Tat (Mr)
HQ SAF Medical Corps
Independent Director, Advisor
He has served as a senior career military officer with 27 years of leadership, management and trainer experience. Having worked as the formation safety officer in HQ SAF Medical Corps and Head of the army Safety Prevention Branch, he is well versed about the safety issues and standards regarding potable water. Moreover, as the Commander of the Commando Training centre and Wing Commander of the Officer Cadet School previously, he has been through various trainings in Brunei, US and Taiwan, and therefore he is well aware about the water needs of a soldier. His strong network and contacts with his US counterparts will make it easier for Qatera to introduce our product to the US army.
He holds a degree in Business Administration from Brock University, Canada.


2 BACKGROUND INFORMATION

2.1 Constituents of Natural Water
Natural water contains dissolved or suspended as well as dissolved substances. The quality of water is dependent upon the physical, chemical and biological characteristics of these substances.

The constituents used to identify physical characteristic of water are:
Solids: suspended and dissolved solids are distinguished by passing the water sample through a glass fibre filter. Total suspended solids (TSS) are solids retained on top of the filter while that passing through is called total dissolved solids (TDS).
Turbidity: caused by colloidal impurities which interfere with the passage of light through the water as they tend to scatter and absorb light rays
Colour/taste/odour: colour is caused by dissolved or suspended colloidal particles primarily from decaying leaves and microscopic plants. Tastes and odours are caused by the presence of decomposed organic matter and volatile chemicals.

Micro-organisms are commonly present in surface water but are usually absent from groundwater because of the filtering action of the aquifer. The most common micro-organisms are bacteria, algae, protozoa and viruses.

§ Bacteria: extremely small size, ranging from 1 to 4 microns. Disease causing bacteria are termed pathogenic bacteria.
§ Algae: single celled plants which could reproduce rapidly in streams and lakes when conditions are right. They can cause bad taste and odour problems.
§ Protozoa: single cell microscopic animals that feed on solid organic particles, bacteria and algae.
§ Viruses: obligate parasites that infect the tissues of bacteria, plants and animals including humans.

Water is evaluated for quality in terms of physical, chemical and biological properties. Water quality requirements are established according to its intended use. Water quality standards are usually established by regulatory agencies (eg. WHO, PUB) to define the limiting levels for various constituents that can be tolerated consistent with the intended uses.

The objective of water treatment is to remove particles and harmful micro-organisms or chemicals so that it is safe for human consumption. Water that can be consumed in any desired amount without concern for adverse health effects is termed as potable water. Secondary standards for drinking water are usually for aesthetics reasons. Although not a health hazard itself, excessive colour and odour in water will affect its desirability. One example would be iron and manganese in water which leads to coloured and bitter-tasting water.

During an emergency event, clean water sources could be destroyed. What is required then is a temporary but instant measure of clean water production. It should also be potable, small in size and maintenance free while able to provide substantial amount of clean water for consumption.

2.2 Pain Points
2.2.1 Current ways of water purification
During a disaster and in camps, when no clean sources of water are immediately available, WHO requirement states that chlorine contained purification tablets has to be used for water purification to obtain potable water. One tablet can be used to purify 25 litres of water. During the purification process, suspended solids and bacteria can be removed.

However, there are many problems. Firstly, puritabs is unable to remove TDS, as well as organic materials. The chlorine contained within would also form chlorine complexes with the organic matter, some of which are potentially carcinogenic. The end product of purification also retains a horrible taste because of the chlorine, and remains heavily coloured due to presence of the DSS. A long duration of purification of around 3 to 5 hours is also required.

2.2.2 Problems in Water Purification
The tsunamis in 26th December 2004 had caused widespread devastation to coastal regions in the Asian region. More than 150,000 lives has perished, and many more were put in danger as millions of people were displaced without shelter, sanitation or clean water. Tons of bottled water was being flown into the affected areas to provide immediate relief to disaster victims. However, the heavy logistics and costs involved often made immediate help impossible.

With ongoing rapid industrialisation – especially in countries such as India, China and ASEAN over the past two decades – the demand for potable water has increased tremendously in terms of quantity and quality. The scarcity of such a precious resource has increased the need for water reclamation, for the preservation and recovery of potable water. Today, over 1.5 billion people live without drinking able water supply.

Drinking from already contaminated water supplies from damaged water treatment facilities or saltwater infiltrated clean water source can cause health problems. Water borne diseases caused by bacteria and viruses could double the death toll, especially amongst children.

What is required is a temporary measure of clean water production, a way of making drinkable water immediately for masses at low cost over a sustained period of time. The product should be incorporated filtration processes and coupled with activated carbon absorption and ion-exchange so as to produce clean water free from particulate and biological contaminants. It should also be potable, small in size and maintenance free while able to provide substantial amount of clean water for consumption.


3 OUR PRODUCT – PURIPEN™

PuriPen™ – the efficient and portable way of water purification
PuriPen™, the primary product of Qatera, provides an efficient and powerful way to produce crystal clear, tasteless drinking water from a contaminated source. One just need to insert the pen into a water source, suck from the drinking spout and clean water would reach his mouth immediately.

Puripen™ – the integrated approach of physical and chemical purification
With 5 steps involved, PuriPen™ eliminates all worries of consumers over health, cleanliness and taste. Very easy operations eliminate the need of people with technical skills.


4 BUSINESS MODEL
Our business model is based on the following principles:

• Focus on core competency in Research and Development
• Focus on key foothold markets, which are the developed areas in China which provide water that does not meet WHO requirements
• Outsource processes to other providers to leverage on their core competencies (distribution)
• Prudent practises to lower the costs of production
• Position ourselves on the most lucrative segment of the value chain.

PuriPen™ Lite, being a cheaper alternative compared to PuriPen™ plus, would be catered to disaster relief purposes, army camps and households who want good quality water at low price.

PuriPen™ Plus, being a more expensive, but more effective water purification device, would be catered to more affluent households, tourists and campers, who have very high expectations of the water they drink.

Our online sales portal would cater to overseas clients and consumers, and purchases done through the internet would be delivered to them via shipping.

4.1 Partnerships

4.1.1 Partnership with Carrefour
The management plan would be engaging in talks with Carrefour, China to market our product in its retail market.

Advantages to Qatera

One of the leading retailers in China
Carrefour, China declared sales of over €2.06 billion in 2005. It is the largest foreign retailer in China. It has a market size of over 5% in 15 of the largest cities across China.

Established distribution network
Carrefour was one of the first foreign companies to enter the Chinese retail industry. At present, it has 80 hypermarkets and 250 hard discount stores

Competitive strength
Carrefour leveraged on its vast experiences in international markets to implement the best-suited policies and practices into the Chinese market.
In China, where vast economic, social, and cultural differences existed among different provinces, Carrefour was able to cater to the needs of different customers successfully.

Change in taste and preferences
Urban consumers are shifting their preferences from the wet markets and state-owned stores, to foreign retailers like Carrefour which provided convenience along with a wide range of products in hygienic surroundings.

4.1.2 Partnership with Red Cross and Red Crescent Societies
In the world of poverty, war, displacement and disaster, the International Federation of Red Cross and Red Crescent Societies serves those in need without regard to race, class, religion and political belief. The International Federation directs and coordinates international assistance to some of the world’s most vulnerable people. Worldwide, the organisation provide local communities and victims of disasters with 20 million litres of water benefiting more than one million people in 30 programs. More than 50 million Swiss francs are spent on water and sanitation each year. The organisation had always been facing issues of distributing water supplies. Women and children often bear the task of water collection from long distances.

4.1.3 Partnership with Atwater-Carey
Atwater-Carey specialises in designing and manufacturing first aid boxes designed for each outdoor activity, ranging from backpacking and camping to mountain climbing and canoeing. It has maintained a good reputation for providing premium first aid kits and set the standards in wilderness medicine. Many large outdoor retailers carry Atwater-Carey products which include:

• Academy
• Adventure 16 Outdoor and travel Outfitters
• Hudson Trail Outfitters
• Mills Fleet Farm
• WalMart

5 MARKET RESEARCH AND ANALYSIS

5.1 Preamble
The United Nations hopes to reduce by half the proportion of people without sustainable access to drinking water by 2015 as part of its millennium development goals. According to the World’s Health Organization, more than 1 billion people in low and middle-income countries lack access to safe water for drinking, personal hygiene and domestic use.

5.2 Problems Faced by Disaster Relief Agencies
During a natural disaster, when there are no immediate potable water sources around, a chaotic situation is created, in which time is of the essence when considering about the availability of water that is suitable for human consumption.

In such times, it is very difficult and expensive to transport drinking water to these target areas. Also, the efficiency of transporting large amounts of water that is enough to suit the needs of disaster victims is greatly compromised.

Earthquake refugees queuing up for limited water supplyAlthough chlorine tablets are required for water treatment in such situations according to the WHO, the chlorination of water takes a very long time (3-5 hours). During an earthquake disaster in Luzon, Philippines, efforts to provide through chlorine tablets to alleviate shortage of drinking water was largely unsuccessful because of the delays involved in purification.

Even after treatment, the water remains very turbid and unpleasant colours remain, and it retains a very disgusting taste, partly due to organic matter present that cannot be removed, and partly due to the presence of chlorine in the water long after treatment. As such, they are not desirable in terms of hygiene, although no immediate health hazards are posed.

5.3 Situation of Potable Water in China
Currently, more than 300 million rural residents lack access to clean drinking water. According to a monthly report on water quality released by China National Environmental Monitoring Center in June, drinking water quality in 16 out of 113 key cities assessed was below national standards. Of drinking water sources, 20.1 percent of the total surveyed, fell short of quality requirements, while 32.3 percent was unsuitable for drinking.

Critical drinking water sources, such as rivers, lakes, and underground aquifers, have been increasingly threatened by industrial pollution. In 2005, the State Environmental Protection Administration (SEPA) received reports of 76 pollution incidents nationwide, many of which took their tolls on water bodies that provide both rural and urban drinking water. The most serious accident, the contamination of northeast China’s Songhua River was caused by an explosion at a petrochemical plant upstream and cut off the drinking water supply of 3.8 million people for four days.

There were also other potential threats. Of 7,555 chemical and petrochemical projects surveyed, 1,354 were located on the banks and shores of rivers, lakes, and reservoirs; 2,489 were adjacent to cities or areas with high population concentrations; 535 were on major tributaries of key rivers; and 280 were on the upper reaches of drinking water source protection regions. According to estimates, more than 13,000 petrochemical factories out of the national total of 21,000 were built along the Yangtze and Yellow rivers, two of China’s major water arteries. Most such factories lack strict environmental protection measures, and the consequences of future spills or other accidents would be devastating.

5.4 Industry and Market Analysis

5.4.1 Changes in Macro Environment

Politically-Legal Environment
China is a Republic Communist State having a one-party system. China (People’s Republic of China) is ruled by Chinese Communist Party (CCP), the only political party in the country, which is socialist in structure and ideology. The legislature is unicameral. It consists of National People’s Congress (NPC) whose members are elected by municipal, regional, and provincial people’s Congress to serve the five year terms. There are 22 provinces, 4 municipalities directly under the central government control and five autonomous regions. China considers Taiwan its 23rd province. The political rights of people in China are very much limited. The judiciary is government controlled.

Social Environment
The Chinese government has undergone dramatic transformation as a result of commercialization, modernisation and increasing exposure to the outside world, set against the backdrop of globalization and liberalization. The commercialization process, with the appearance of economic elitism, has transformed social differentiation, in which political power is no longer the unique criterion to measure social status.

China’s robust macroeconomic growth has improved standard of living for its population, together with better social infrastructure for education and health care. The market for high quality, patient-oriented healthcare services is therefore very promising. Currently, there are many successful foreign and joint venture healthcare service providers already in China. Their experiences point to growing opportunities for foreign companies looking to invest in this segment of the market.

5.4.2 Drivers
There has been an increasing demand for portable, efficient and effective water purification devices like the PuriPen™. The following market drivers have been identified:

Unpredictability of natural catastrophes
The 2004 Indian Ocean Tsunami showed the incapability of providing clean and drinkable water fast enough to satisfy the needs of survivors. With the unpredictability of disasters such as these, there is a high demand for water purification devices that can fit into a pocket.

Globalization and booming of tourism
The 21st century has seen a surge in the number of tourists in countries around the world. Hence there is a need for a portable water purification device that helps them to adapt to the tastes and bacteria composition of water anywhere, so as to have an uncompromised holiday experience.

Increasing affluence of the Chinese society
This has led to greater expectations on standard of living among the general population. With huge increases in GDP per capita, the common Chinese would not mind spending a bit more money to improve their overall state of health by drinking water of higher quality, something that boiling cannot completely solve.


5.5 Porter’s Five Forces

Supplier Power: Low
1. Small Initial Volume of Production
2. Raw materials needed are unique and exclusive to a few suppliers
3. Cost of changing supplier is low

Barriers to entry: High
1. Highly sophisticated and integrated product
2. Patented technology
3. Unlikely for industry shakeout due to product differentiation

Buying Power: Low
1. High demand for clean drinking water among the growing middle and upper class in China
2. No direct substitutes for an instant portable water purification device

Threats of Substitutes: Medium
1. Several alternative methods available
2. However, customers are looking for an efficient, convenient and instant method of purification

Degree of rivalry: Medium
1. High level of product differentiation
2. Rapid market growth

5.6 Customers
5.6.1 Disaster Relief Agencies
With the unpredictability and yet destructibility of natural disasters, many aid organizations have turned their attention on disaster relief, along with established ones such as the International Red Cross, and they dedicate their best to alleviate the suffering of disaster victims

5.6.2 Army
Currently, the militaries of almost all countries in the world use chlorine tablets, or Puritabs, as the primary method of water purification during outdoor training and army camps.

5.6.3 Campers
Campers who choose to travel light are not able to bring along extremely heavy supplies of drinkable water with them. Thus, crystal clear water without unpleasant taste is a luxury to them, especially when they camp in less developed areas.

5.6.4 Tourists
Studies have shown that over 35 million people travel from "industrialised" countries to "developing" countries each year. This includes tourists, adventurers, students, business people, voluntary workers, military personnel etc. It has been estimated that between 20-50% of these people suffer an attack of "travelers" diarrhea - based on a two week stay. On average, travelers "lose" 3-4 days of their stay due to diarrhea. 10% of cases last longer than a week, and about 2% last longer than a month. The average cost for medication and missed activities has been estimated at almost $120 per patient.

People who travel to foreign countries may find the water in those countries very unsuitable for them, due to the difference in bacterial composition of water. Thus, they may find it very hard to adapt to the abrupt change in taste, and might also get many irritations and illnesses such as diarrhea, thus affecting their holiday mood.

5.6.5 Households in China
Drinking water quality in 16 out of 113 key cities assessed was below national standards. Of drinking water sources, 20.1 percent of the total surveyed, fell short of quality requirements, while 32.3 percent was unsuitable for drinking. These numbers are very likely to increase, with the increase in number of petrochemical plants built near the main water arteries of China.


6 MARKETING STRATEGY

6.1 Marketing Objectives

6.1.1 Promotional Objectives

• To create brand awareness in our disaster relief agencies and army target markets within the first two years of operations
• To create brand awareness in our tourists, campers and household target markets within the first three years of operations

We will seek to establish partnerships with the International Federation of Red Cross and Red Crescent Societies and Atwater Carey. Our objective is to be recognized and be established as one of the most effective, convenient and high-technology product in providing portable water.

6.1.2 Market Research Objectives
Studies on expectations and needs concerning drinkable water of Chinese consumers and modern armies completed by 2008
Studies of water situation in China completed by 2010

6.1.3 Research and Development Objectives
Through research and development we would reach out to a larger target market by improving consumer satisfaction in our product.

Research factors

• Improve general effectiveness of physical filters
• Improve on ease of use and maintenance
• Increasing aesthetic appeal
• Lowering overall costs through improvement on manufacturing methods
• Improve on effectiveness of pathogen filtration and removal
• Lab tests on effectiveness of PuriPen on different sources of water
• Reduce overall size and weight of PuriPen

6.2 Market Strategies
We have split our marketing strategy into 2 phases, Phase I and II.

6.2.1 Entry Market Strategy
Qatera is at a start up stage of bringing our product to the market. We will be building our company internally and externally in preparation for a strong build-up growth. As PuriPen™ is at the introductory stage, marketing plans will be geared up to build brand awareness and product acceptance for our different consumers. For Phase I, we will be introducing our product to the Chinese Market and armies all over the world. China has been experiencing rapid industrialization and economic growth in recent years and the middle and upper class has been booming. Furthermore, China has identified water supply as its key area for improvement and has been investing heavily in water purification projects. China’s market for water and wastewater treatment increased from US $18.7billion a year earlier, to US $22.7 billion in 2005. It is projected to reach US $32.2 billion in 2010.

6.2.2 Research and Development
With a new water purification device in the industry, we aim to get approval from WHO as soon as possible for our product to be used in water purification in times of disaster, along with Puritabs. To do this, we would continue to conduct research and development and prepare publications that show that PuriPen™ is able to surpass Puritabs and other tablets in total water purification. We are currently collaborating with Nanyang Technological University, Singapore, with Associate Professor Darren Sun Delai at the helm of research operations. In exchange, high rebates are promised upon commercialization.

6.2.3 Manufacturing
We will set up a manufacturing plant in Guangzhou, China. We would be capitalizing on their pool of talent, low labour costs, good infrastructure, reduce our distribution costs and it would also be cheaper to acquire raw materials. We would be outsourcing and assembling of the production of our disinfection component to an electroplating company in China as they have the required heavy metal infrastructure for electrode manufacturing. This would help to save costs. The production and assembling of the rest of the pen would be taken by our company. Inventory management system will be implemented to ensure timely supply and order purchases between Qatera and the manufacturers.

6.2.4 Sustainable Marketing Strategy
Once our product, reputation and brand have been established, we will then move on to implement Phase II. We would expand our target market to include households, tourists, army personnel, camping enthusiasts, disaster victims.
We will continue to actively engage in value innovation when the value curve of other companies become similar to us, turning the original blue ocean to a red ocean.

6.4 Marketing Mix

6.4.1 Product
In order to position Qatera as the most effective and convenient product, it is crucial to differentiate itself from existing competitors. We are backed by a team of committed members.
As a result of our investment to research and development, our product has the ability to purify clean drinking water without any unpleasant taste and colour rapidly. We emphasise on effectiveness, hygiene and convenience. Moreover, it is so small that we can slip it into our pockets but yet it has the ability to purify relatively large amounts of water. Our product utilizes both physical and chemical filtration unlike chlorine or iodine tablets to obtain optimum efficiency.
Beside, it is affordable, has a high degree of safety, easy to use, minimal side effects, and has been designed specially with careful consideration of our customer’s needs. We will offer a 3 year warranty for our PuriPen™ Plus.

6.4.2 Pricing strategy
We will be mainly adopting two pricing schemes. In phase I, to penetrate the market and compete with our competitors to gain a larger market share, we would be selling our product to consumers at an artificially lowered price of $13. At the same time, we would sell our product to disaster relief organizations at our cost price of $10 and we would provide staff to educate the disaster relief workers on how our product works for free. This is as part of our company’s corporate social responsibility to help the unfortunate and benefit the community. By doing so, it will help to boost our product’s reputation and image.
Our product is comparatively better than other available portable drinking water treatment methods in terms of taste, effectiveness in removing pathogens and convenient. (No waiting time). Chlorine tablets need about 3 to 5 hours. Therefore, in phase II, once our product is established, we will then raise the price to maximize total revenue. Price discrimination would also be implemented, ie 1) Charging a different price for the same product 2) Set a uniform price per unit for a specified quantity of the product and a lower price per unit for subsequent unit.

6.4.3 Promotions

a) Advertising
Tie-up with distributors dealing in camping equipment to co-supply product to various camping equipment stores for product display
E-commerce: Product sold directly to consumers worldwide through company website, and through other frequently visited websites selling camping equipment. Email support will be available for those interested to know more about the product.

b) Sales Promotion
Distribute product samples to army / distributors at artificially low prices when product is just in the market to increase demand for the product in the short-term
Create an online interactive promotion game: Consumers play an interactive game associated with the promoted product.

c) Public Relations
§ Gain approval from WHO
§ Give free batches of products to disaster victims to gain reputation and maintain good public relations
§ Favourable presentation of the product in the media
d) Sponsorship
Cause-marketing: cooperating with a non-profit organisation for mutual benefit to both parties eg. supporting a global campaign like WaterAid or End Water Poverty campaign in which our company can tap on funds from the programs, while benefitting the non-profit organisation at the same time

e) Branding
Brand is not just a name. Nor is it a symbol or logo. Qatera aims to be the number one leader in the portable water purification industry. In order to achieve this image and deliver high functional and emotional benefits to our customers, we will drive our company resources to build our competencies in core area: Research and Development.

6.4.4 Place
In our first phase, with the network and assistance from our boards of directors, we would be distributing our product through disaster relief agencies. In our second phase, we would be leveraging on existing distribution channels of Atwater-Carey, Carrefour, China, the US and Singapore Armed Forces, and the International Federation of Red Cross and Red Crescent Societies. The sales of our PuriPen™ will be dependant on our distributors, therefore intensive training and education will be provided for them to hit our sales target. Apart from leveraging on the distribution channel, we will also establish direct sales through our online website.


7 Risk Analysis
The risks identified are as follows:
Ø Entry Market risks
This will be solved by strategic partnership with established market players in their own fields. We also have an experienced board of advisors and directors to guide us. The problem of lack of funding will be solved by taking up loans/investment from SPRING and EDB, and with the help of friends, families and angels and other private investors.
Ø Technological risks
This is identified as a low risk to us. Both of our products are already in the late stages of development. Our research team had been extremely dedicated and we are positive that we would achieve our goals, aims and objectives. Apart from that, our HR department is on a constant lookout to attract budding talents.
Ø Patent Approval risks
Our patent appeal is most likely to be approved as our product is innovative, original, novel and highly applicable to the water purification industry.
Ø Manufacturing and distribution risk
These risks would be overcome through our partnership with various organisations, leveraging on their experience, expertise, network and knowledge.

Phew. After one month of hard work, screwed results... We will be going again next year :P

Team Qatera :D
Collin
Jinyang
Ziming

k, this might be irrelavent, but here goes.

In economics, in a competition for market share, companies employ the use of demand elasticity concepts such as cross elasticity of demand. Competition strategies would normally involve lowering of price (such as in a price war) or differentiation of product (to decrease CED). However, with the development of new business strategies, wonder if its ever possible to lower price and differentiate your product at the same time?

Actually, while this may seem inplausible, such strategies have been used by many companies over the years. Yellow Tail, one of the best selling wines in the world, is a very good example. Premium wines are often used to show class and taste in dinner parties. With high aging quality and extremely reputable wineyard legacy, their prices are naturally sky high. However, the makers of Yellow Tail found out that these factors were exactly what put many people off, who felt that drinkers of such wine were vain and pretensive.

Yellow Tail eliminated all these factors, and incorporated a soft and approachable taste that was appealing to many alcohol drinkers, and its bottle had a striking, simple, and nontraditional label featuring a kangaroo in bright, vibrant colors of orange and yellow on a black background, as opposed to the confusing technical jargon found on premium wines. Through this, it succeeded in both reducing cost and thus price through removing aging and focus on reputable wineyard legacy, as well as differentiating its product to appeal to many more consumers. It has achieved much lower cross elasticity of demand with other wines, cheap or premium, and also at a lower price.

Jinyang

Heard this Joke?

This joke relates to RECESSION and INFLATION

There was once a man who claimed to be a WALKING ECONOMY. "what's that", someone asked. The man replied, " Look my hairline is in RECESSION; my waistline is a victim of INFLATION..and both are putting me into a deep DEPRESSION". Got it? :)

hELLO 6n

This is officially the last week before the inter-CT econs blog competition comes to a formal closure. Well, i am pleasantly surprised and gratified by the quick respond to the article I posted on $2.80 haircut. Yes, David is absolutely correct - Economics is COOL... cos it deals with a lot of stuff that you and I face everyday. Alfred Marshall ( one of the greatest economists who ever lived and a teacher of John Maynard Keynes - another legendary economist) once said " Economics is the study of Mankind in the ordinary business of Life". So, keep the fire in your belly burning as u learn and apply what u have been taught over this short span of time.

. One day, who knows you may become another LEGENDARY ECONOMIST ... who hails from the land of the little RED DOT and even more special -the econs tutorial class of 08S6N. Dreams do come tRue....Yeah.

mr tan:)

Snip Avenue

Note: i swear i did this b4 i saw mr tan's e-mail.

Refering to today's article on the Home section, "Forget JB - all head for a snip at Snip Avenue", I am once again reminded how practical and useful economics is in understanding the world around us, and would like to horne my skills by providing some insights on the issue, looking beyond what the layman would understand from the article. It is deeply regretable that I could not publish the article here due to copyright issues. There are many concepts that come to mind while look at the article. Here are my thoughts, pardon me if they seem jumbled.

In short, the article showcases "a new kid on the block" offering below normal prices for haircuts, that of $2.80, putting many other barbers out of business and apparently still floating.

Through this article we understand that the haircut industry is not perfectly competitive market. Even though there are many small buyers and sellers of this particular service (one facet of perfect competition), there apparently is incentive for a firm in this industry to lower its price, showing us that this firm does not experience what a normal PC firm's demand curve, i.e. not perfectly elastic.

If one were to look at the article on the surface, one may reason that the low price is due to a lower quality of service provided. Taking into account income elasticity, we can look at the situation this way: this salon is quick to respond to market sentiments, that of a looming recession, and thus changed the quality of goods which he would like to provide, and hence attract more people who wish to pamper themselves with a haircut but of an inferior kind.

Nevertheless, apparently, they provide very good haircuts, with one polytechnic student reportedly "emerging from the shop sporting the layered look he asked for 'like the singers in 5566'". So at one hand, they offer better service at lower price. How do we account for this?

Taking into account ceteris paribus and equal cost conditions for all salons, we see that although this new salon may not experience that much revenue from the haircut market, the demand curve for the perms and highlights (complementary goods) market does shift to the right, which is how this new firm earns money. The owner of the shop implies that this is the kind of customer that he wants in the article.

Also, the LRAC for this salon continues to fall as output expands over a wide range because according to the owner, "the mass volume can cover the cost". A case for natural monopoly?

Any comments on this possibly disastrous analysis of the article?
Cheers for this last week of school. We have only one and a half years left. Cherish and have fun.

David.

whee! sony vs nintendo 2 (microsoft died)

rawr! since i am free 2day's post shall compare the two most popular handheld game consoles in the world, namely the Nintendo ds and Sony psp. Sony psp sold 34 million units worldwide as of 31/12/2007 while Nintendo ds sold a total of 45.97 units

overview of the two systems:

• Nintendo DS: Known as the Nintendo Dual-Screen, the DS is a handheld game device with two screens, a stylus pen, and the ability to play both Nintendo DS and Gameboy Advance games. Equipped with wireless technology, a touch sensitive screen, and a microphone, the DS has many characteristics similar to a specialized PDA, but with awesome gaming ability. It was released in the U.S. in November of 2004.
  
  
• Sony Playstation Portable (PSP): The Playstation Portable is Sony’s answer to Nintendo’s handheld market dominance. With a large wide-screen display, more powerful innards than the DS, and a media type capable of storing 1.8 gigabytes of data, the PSP is well positioned to change how we think of portable gaming.

detailed comparison of DS and PSP:
http://gear.ign.com/articles/599/599454p1.html



at first before the introduction of PSP nintendo has a market share of over 90% (very close to monopoly, has monopolistic power) in the handheld console market thanks to the gameboy, however after the introduction of Sony PSP, more and more people are turning toward psp for better graphics and more hardcore gaming experience. The PSP also allows users to listen to music and watch videos ( a feature that the DS does not have)

The psp is a very close substitute of the nintendo ds. So according to the cross elasticity of demand Nintendo ds should try to differentiate its product so as to lower the substitutability of the product. Nintendo improved their current ds and launched DS lite in january 2006. The DS lite is 21% lighter than the original ds and 16% smaller in size. below is some more improvement made to the DS lite compared to the original DS (copied from wikipedia)

1. The LED battery and charging light indicators have been moved to the upper right-hand corner of the unit, making it viewable regardless of whether the system is open or closed.
   
2. The "start" and "select" buttons have been moved to the lower right-hand side of the touchscreen, the microphone has been moved to the direct center of the opened device, and the A, B, X, Y, and D-Pad seem to have been designed to match the Wii and Game Boy Micro.
   
3. The power button above the D-pad was removed and replaced with a switch placed on the right side of the unit, in order to avoid accidental shut-off.
   
4. Another improvement is the longer and thicker stylus, significantly reducing the amount of hand cramps as its users use it extensively throughout game play; the stylus holster was moved from the top of the unit to the right side.

But in order to keep up with the competition, the sony psp launched its own version of psp slim/lite in September 2007. This new psp is 33% lighter and 20% smaller than the original one.
Some of the new improvements in the new design:

1. TV Output function
   
2. supports charging via USB
   
3. double the onboard RAM (32 MB to 64 MB) and caches UMD data in memory to decrease game loading times.
   
4. The WLAN switch has been moved to the top where the old IR receiver was to avoid accidental switching, and the speakers have been moved from the bottom of the screen to nearer the top, to prevent users from accidentally blocking the speakers with their hands.
   

http://www.cnettv.com/9742-1_53-50002265.html?om_act=convert&om_clk=multimodule&tag=multimodule;picks;title;4
This is a video where they compare the new features of both the new PSP slim and DS lite

I am sure both Nintendo and Sony will continue to improve on their products through research and development to win consumers over so they can own a bigger market share which will lead to an increase in revenue.

han chang

hello 6n! (:

hope you guys enjoyed the lemonde game i posted the previous time. that was an oppotunity for us to have a go at being an entrepreneur! :D haha. firstly, you had to take into consideration the weather for the day, so as to decide how much ingredients to purchase. Also, since it is cheaper to buy the stuff in bulks, we had to make a choice of whether we wanted to buy the things in large quantities but risk having to waste them if we are unable to sell so many cups of lemonade, or just buy smaller quantities at higher prices. there were also other things that we had to decide such as the price of each cup, the amount of ingredients to be put into each cup (which would affect the quality of the drink).

Anyway, enough said about the game, i shall move on to the next issue now, which is about PEPSI vs COCA COLA .

As we all know, there has been a long battle beween the two companies, due to the strong similarity between the two drinks. to have a clearer idea of the world market shares of these towo companies, you guys can go to this website: http://www.nytimes.com/ref/business/20070527_COKE_GRAPHIC.html

Now, referring to the article Coke vs. Pepsi: the new cola wars
Full article at: http://money.cnn.com/2002/05/10/pf/investing/q_cola/index.htm

We can see that although currently, coca cola is still the dominant firm in the soda industry with the highest market share (Coke's market value in 2002 was $140.4 billion, while that of Pepsi was only $92.0 billion) , Pepsi actually seems to be doing better than Coke (in 2002, Coke's estimated revenue was $19.8 billion, while Pepsi's estimated revenue was $26.2 billion. there are various reasons to this.

Firstly, Pepsi is considered trendier than Coke. In 2002, both companies launched their new products: Vanilla Coke and Pepsi Blue. However, while Pepsi tried to reach out to the hipper and younger generation, Coke seemed to be focusing on nostalgia. Pepsi's strategy was more effective as it went for the right market - young people are more likely to drink such sweet carbonated soft drinks. Pepsi's effective approach led to an increased in unit volume for the firm. "According to the Beverage Market Corporation, unit volume for all of Pepsi's soda brands (including Diet Pepsi and Mountain Dew for example) increased 1.3 percent in 2001 while volume for Coke's carbonated beverage brands (Diet Coke, Cherry Coke and Sprite among others) declined by 0.2 percent."

Secondly, there is diversification in the products by Pepsi. Unlike Coke which focuses solely on the beverage industry, Pepsi has a variety of products which include beverages and snack foods. Examples of Pepsi's products are: Gatorade, Fritos, Doritos, Rold Gold, Quaker Oats etc. To quote Crit Thomas, director of growth equity for National City Investment Management Co., the subadvisor for Armada Funds, "What attracts me to Pepsi is I have more faith in their ability to grow earnings. Not only are they successful on the beverage side but they are successful with salty snack foods."

By having diversity, Pepsi is able to generate sales and earnings from different sources. As stated in the article, "Pepsi's Frito-Lay brand of snack foods, which include Fritos, Doritos and Rold Gold, accounted for 61.2 percent of revenue and 65.3 percent of operating profits in the first quarter (of 2002)." thus, even if Pepsi faces strong competiton by Coke, it will still be able to survive because even if it fails to harvest profits by selling carbonated drinks, it can still fall back on their sale of snack products.

To substantiate the fact that many business companies see more potential growth in Pepsi than in Coke, here are some evidence:

As of 30 April 2002 , Pepsi was the second-largest holding of the Henssler Equity Fund. The Henssler Equity Fund (HEQFX) invests in sound companies with strong track records. The top 10 holdings under the fund are:

1. AMEX Energy SPDR
2. PepsiCo, Inc.
3. Apache Corp.
4. ExxonMobil Corp.
5. Johnson & Johnson
6. Int'l Bus Machines Corp.
7. Emerson Electric
8. Procter & Gamble, Co.
9. Teva Pharmaceuticals Ltd.
10. General Electric, Co.

NOTE that the fund does not own Coke.

Also, as of 31 March 2002, Pepsi was the seventh-largest holding in the Armada Tax Managed Equity Fund and the tenth-largest holding in the Armada Equity Growth Fund.

_


Okay so now to end off, i'd just post a few very interesting videos here. (:

1. A commercial by Pepsi (which was banned)



2. A commercial of Pepsi VS Coke



3. Rivals: Coca Cola Chiristina VS Pepsi Britney






- yilina :D

No Frills Airlines

First time blogging haha :)
So, this is Mad TV's idea of a No Frills Airline that may be possible thanks to rising fuel costs and other factors. Enjoy !


Sainyam

Happy Mothers' Day

Hi u wonderful people of 6N

I thought of sending u a mother's day article on the economic contribution of mums to r welfare but dont know how to attach the article. So, I think I will email instead. I know its "uncool" but guess as a digital immigrant the learning curve is pretty steep. But, nevertheless its no excuse so will find out when I get back to school. That said, I must say what I saw today is simply "overwhelming" ... it like all the toy soldiers have come to life at the stroke of midnight!! Your blog seems to be totally transformed and buzzing with economics...and more economics.. Great people keep it up : )

-xiangquan

Principles of economics, translated

it is quiet funny! lols!
-gwen

Reasons for studying economics

1. Economic Forecaster.
As an economist you can make a living from predicting future economic events. The key to being a good economic forecaster is to use a mixture of dice and lottery numbers. (some economists make the mistake of using just lottery numbers, but this can lead to really bad forecasting) If this method fails just use the statistics from the previous year; they are always more accurate than the actual predictions of economists.

• Note: Economists have successfully predicted 10 out of the last 2 recessions.

2. You can always give Advice.
When the economy enters a recession, you will be able to tell everybody why the economy is in a recession. Also, you will be able to suggest several conflicting reasons as to how we can get out of a recession. This will simultaneously, both confuse and impress everybody; but it doesn't matter because nobody ever listen to economists.

3. Diminishing Returns.
When you get ill from drinking 10 pints of beer in one night. You will be able to impress your parents with the knowledge that the law of diminishing returns is actually perfectly correct. As a side effect, you may also learn about opportunity cost:
Spending £40 on drink equals hangover.

4. Rational Behavior.
Economics assumes people are rational. Economics assumes that people choose the activity which optimises our utility. When people want to buy a season ticket to watch Leeds United, you can tell them this is irrational behaviour. The Leeds United supporter will definitely appreciate the cogency of your economic reasoning and will, more than likely, start supporting Doncaster Rovers with immediate effect.

5. Economics is a very humorous subject.
How many Free Market economists does it take to change a light bulb? None, in the long run, it will change of its own accord.
How many Marxists does it take to change a light bulb? None, smash the light bulb, a light bulb is a mere representation of the capitalist ideology that gives a feeble light, rather than the True source which is the sun.

6. Economics gets you a high paid job.
Actually, this is the only reason people study economics. Unless of course you have a strange desire to be an economics teacher; in which case you will enjoy your students repeatedly asking you the question; "Why didn't you get a proper job in the city, Sir?"

7. It's better than studying Geography.
True, but purists may argue this doesn't prove very much.

8. However - On the Other Hand

Economics is the only subject where contradicting yourself is seen as a highly desirable attribute. To double the mark on your economics essays, just say after each paragraph: however, on the other hand this is probably not true at all...

9. You will Know Why you are Unemployed

When you are standing in the unemployment queue, you will be able to tell everyone the type of unemployment they are suffering from. This will greatly endear you to the ranks of the unemployed; who will definitely not, sarcastically, ask you;
"If you know everything, how come you haven't got a job then?

(Its meant to be funny)

-Collin

microsoft vs sony vs nintendo

http://nexgenwars.com/

link to the estimation of number of xbox 360, ps3 and wii (stupid nic owns both a wii n ps3 then still don;t let me go over n play)
as you all can see if you go to the link above nintendo wii is topping the sale chart with 21 mil console sold =), while xbox 360 follows closely behind with 18 mil console sold but ps3 lagging behind with 9 mil only

this clearly show how nintendo wii console is dominating the market, xbox 360 has been release in nov 2005 one years and a month eariler then the wii and yet the amount sold is 3 mil behind wii. PS3 by sony is also launched around the same time as the wii, however statistic have shown (look above) that it is clearly not as popular as wii

Much of these are due to a distinguishing feature of the wii console (product differentiation/research and development). Unlike the PS3 and Xbox 360, nintendo wii games can be played using a wii remote which is a handheld pointing device and is able to detect movement in three dimensions. ok translation to english : montion sensor technology. for those who still don;t understand all you need to know that you can play your wii games by just waving the wii remote at the screen.

Also Nintendo games are more family based in design, including hit games like mario ssbb, instead of those action first person shooter games that both microsoft and sony produce. This way they will be able to increase their total revenue as they monopolise the market for family oriented games while microsoft and sony have to fight for a bigger market share for the same type of games ( reach out to customer with a different taste and preference)


http://www.informationweek.com/news/hardware/desktop/showArticle.jhtml?articleID=207400644

Sales were sparked by the recent launch of the hit game Super Smash Bros. Brawl -- a Wii exclusive.

Nintendo spends tons of money on research and development to improve on their current games, but its clearly worth it, they are remaking different and better versions of classic hits like all those mario games. Nintendo makes the game play of these new games like the old ones and to make them more attractive they added in more characters and hidden stuff in the game. So even though the gameplay is the same there are a lot of new places to explore and new enemies to fight. For example there were only 12 characters and 9 maps to choose from for the first super smash brothers game. Now the just released super smash brother brawl promised a wide range 35 of characters and 41 maps to choose from and tons of new items to try out!

lol got dota game now >< so shall stop rawr!

Han Chang

This blog should not be called monopoly=D

first, it has NO barriers to entry, though we all get to earn supernormal profits=p

second, there are many producers ( 25 specifically) supplying this market, though we are supply unique products=).

hope u guys enjoyed the cartoons!

-yuen ying=)

why do economics cartoons always refer to a lemonade stand...?





monopoly... :

and there's a lemonade game you guys can try out too.. haha. try it at http://www.lemonadegame.com/ .

Have fun! :D

- yilina.

Econs Jokes (again)

Since people are earning supernormal profit in telling jokes in this blog, i shall enter the market and join in the competition!

To answer Mr. Tan's question, i have found the answer
Q:Why did God create economists ?
A:In order to make weather forecasters look good.

Q: How many economists does it take to change a lightbulb?
A: Eight. One to screw it in and seven to hold everything else constant.

There are many variations on the light bulb joke, and all can be found in the site listed at the bottom of this post!!!

More jokes!!! (from the same site)

Talk is cheap. Supply exceeds Demand.

TOP 5 REASONS TO STUDY ECONOMICS
1. Economists are armed and dangerous: "Watch out for our invisible hands."
2. Economists can supply it on demand.
3. You can talk about money without every having to make any.
4. Mick Jagger and Arnold Schwarzenegger both studied economics and look how they turned out.
5. If you rearrange the letters in "ECONOMICS", you get "COMIC NOSE".

For more jokes (really high in supply)
visit http://netec.wustl.edu/JokEc.html
and credits to the above sites

-Nicholas-

Hi People of 6N

I'm glad at last I am invited to join r blog. Have been waiting for this moment. This is a place for you as a class to exchange/share all things economics - articles, jokes, cartoons, videos, songs etc .
Can be serious or light-hearted. Let me begin with a couple of econs-related riddles:
Why did God create Economists? Anyone knows the answer?
How many economists is needed to change a light bulb?

cheers

mr tan:D

what is marketing?

hello 6n! =) i found this pretty cool illustration of what marketing is about.. enjoy :D

Marketing Concepts?
A Professor at one of the IIMs was explaining marketing concepts to the Students:

1. You see a gorgeous girl at a party. You go up to her and say: "I am very rich. "Marry me!" - That's Direct Marketing"

2. You're at a party with a bunch of friends and see a gorgeous girl. One of your friends goes up to her and pointing at you says: "He's very rich. "Marry him." -That's Advertising"

3. You see a gorgeous girl at a party. You go up to her and get her telephone number. The next day, you call and say: "Hi, I'm very rich. "Marry me - That's Telemarketing"

4. You're at a party and see gorgeous girl. You get up and straighten your tie, you walk up to her and pour her a drink, you open the door (of the car)for her,pick up her bag after she drops it, offer her ride and then say:"By the way, I'm rich. Will you "Marry Me?" - That's Public Relations"

5. You're at a party and see gorgeous girl. She walks up to you and says:"You are very rich! "Can you marry me?" - That's Brand Recognition"

6. You see a gorgeous girl at a party. You go up to her and say: "I am very rich. Marry me!" She gives you a nice hard slap on your face. - "That's Customer Feedback"

7. You see a gorgeous girl at a party. You go up to her and say: "I am very rich. Marry me!" And she introduces you to her husband. - "That's demand and supply gap"

8. You see a gorgeous girl at a party. You go up to her and before you say anything, another person come and tell her: "I'm rich. Will you marry me?" and she goes with him - "That's competition eating into your market share"

9. You see a gorgeous girl at a party. You go up to her and before you say: "I'm rich, Marry me!" your wife arrives. - "That's restriction for entering new markets"

reference: http://in.answers.yahoo.com/question/index?qid=20071109204405AAioOSq&show=1

P.S. lets post more and keep this blog alive :D rmb how many birds one stone can kill! =)

-cynthia

World Bank's Zoellick urges against export bans in food crisis

Tuesday 29 April 2008
Full article: http://www.channelnewsasia.com/stories/afp_world_business/view/344427/1/.html

Summary
International organisations urged countries not to use food export bans to deal with global food crisis, saying these would only fuel inflation.
"Not good economic solutions in the short run"
"It is obvious such measures would result in a further increase in prices"

Review
As we all know, one of the main factors affecting supply is expecations. When farmers expect that the price of rice is going to increase, they would withhold their supply, and wait for market forces to push their prices up till their expectations before selling it.
However, such acts cannot be tolerated as it has caused the poor to be adversely affected. Therefore, I feel that the government should provide a subsidy, especially for the lower income group, or set a price ceiling. (less desirable)

Regards
Collin
P.S: Lets get cracking