How could China develop so many high-value software (Tencent, Alibaba, Baidu, Ant Financial) and Hardware (Huawei, Lenovo, Oppo, DJI) companies creating lots of high paying Jobs while India can’t?

https://qr.ae/TUfLDv

Um you mean like Tata and Reliance?

It turns out that India is better at creating outsourcing enterprise IT companies than China is.

There are things that India is better at, and stuff that China is better at. China turns out to have gotten into hardware because of Indian laws on manufacturing that killed the industry there. As far as “pure software” I’d say that India is better than China, but the Chinese companies exist to fill a niche. In the case of Tencent and Baidu, it was because Chinese internet laws meant that Western companies couldn’t enter. Ant Financial was because you had a pre-existing P2P loan system that went onto the internet,

If you ask why did X happen, you’ll find lots of random events that happen to just put something in place X.

Also just like people have crazy and outdated ideas about China. People have crazy and outdated ideas about India.

Bacteria for piglets and Chinese infants spur Li Ka-shing’s gut instinct to put his money behind this US biomedical firm

https://www.scmp.com/business/article/2181301/bacteria-piglets-and-chinese-infants-spur-li-ka-shings-gut-instinct-put-his

  • Infants increasingly lack beneficial gut bacteria due to Caesareans, formula feeding, antibiotics
  • Piglets have a hard start in life, and trial will get under way in China to see if product can toughen them up

A company backed by Hong Kong tycoon Li Ka-shing has reintroduced a missing beneficial gut bacteria to more than 10,000 American babies. Now it is eyeing China’s babies – and piglets. This Week in Asia Get updates direct to your inbox E-mail * By registering you agree to our T&Cs & Privacy Policy

Evolve BioSystems, a California probiotics products developer, is in talks with Zhejiang University to conduct clinical trials on more than 4,000 pigs this year in the province to improve stock survival rates and cure gut diseases in piglets, said chief executive Timothy Brown.

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Why Are All Apple Products Photographed at 9:41 a.m.? An Apple Insider Reveals the Answer

It’s something we can all learn from.

I hadn’t noticed it myself. Maybe you hadn’t either. But every single Apple product in every promotional photo is set to 9:41 a.m. MacBook, iPad, iPhone, it really doesn’t matter. With one big exception (which we’ll get to), for every Apple product in the world, it was exactly 9:41 a.m. at the time of its photo shoot.

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《新加坡调解公约》明年8月在我国签署

https://www.zaobao.com.sg/realtime/singapore/story20181221-917629?utm_medium=Social&utm_source=Facebook#Echobox=1545363227

(早报讯)联合国框架下首个以新加坡命名的公约《新加坡调解公约》(Singapore Convention on Mediation)已在联合国大会通过。公约将促成国际商业和解协议的执行,从而促进国际商业发展和跨境贸易。

《新加坡调解公约》明年8月7日将在我国签署。

我国律政部发文告指出,第73届于美国纽约举行的联合国大会今天(美国时间20日)已通过决议,采纳联合国国际和解协议的公约,并以新加坡命名。这是联合国框架第一个以新加坡命名的公约。大会也决定,签署仪式明年8月在新加坡举行。

新加坡驻纽约联合国常任代表也在联合国大会发表声明,肯定联合国国际贸易法委员会(UNCITRAL)在调解方面的工作,并感谢联合国支持公约签署仪式在我国举行。

De Beers is fighting ‘fake’ diamonds from China, but who’s the real fake?

Source : https://www.scmp.com/news/hong-kong/society/article/2174827/de-beers-fighting-fake-diamonds-china-whos-real-fake

Yonden Lhatoo rubbishes the ‘natural’ diamond market as a rip-off, built on lies about the worth of stones that are now being mass-produced in laboratories to offer much cheaper and better alternatives

So the mighty diamond market manipulator and monopolist De Beers is worried about its bottom line being eroded by manufactured stones being mass-produced in China.

After spending decades trying to suppress and ostracise the synthetic diamond industry, it did a complete U-turn and jumped on the bandwagon this year, although marketing its own lab-grown stones as a more “casual” alternative for “birthdays and fun”, rather than for weightier occasions.

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Middle Kingdom meets Magic Kingdom

Source: https://www.economist.com/business/2010/08/26/middle-kingdom-meets-magic-kingdom

A Western media company offers a product the Chinese can’t resist: education

Welcome, future mouseketeer

ON A Tuesday at 6pm, children begin arriving at a bland commercial building just as the office workers are leaving. A small storefront leads to an English-language school run by Disney. It is not much of an entrance, squashed between a dusty drugstore and a fast-food joint. This being China, many passers-by assume it is a fake. But word is spreading through the pushy-parent network: this is the real thing.

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Competitive Strategy Chapter 4 New Market Entry

Attractivenss of new market entry => Choice of market => Choice of entry type => Entry strategy
Structural Entry Barriers
Factors that allow incumbent firms to earn positive economic profits, while making it unprofitable for newcomers to enter the industry
Structural & Strategic barriers.
1. Control over natural resources.
2. Supplier capacity.
3. Location
4. Economies of scale, economies of learnings.
5. Marketing advantages of incumbents.
6. Customer Loyalty
Strategic Entry Barriers
Maket Entry
Types of commitment
1. High sunk cost investments.
     Production Capacity.
     R&D.
     Advertising.
2. Exit from other strategic market segments and focus on entry.
e.g. Bloomberg
a. Innovators enter the market with inferior products which appeal to price-sensitive buyers.
b. Incumbents ignore the threat since mainstream customers don’t want those products.
c. Over time the products improve and take large chunks of the market from the incumbents.
d. market leaders can hardly respond because they find it difficult to replicate entrants’ low-cost business models.
Judo Economics
can only work when it is better for the incumbent to lose some market share to the entrant rather than to start a price war and fight back the market share for the entrant.
This is only the case if
a. The entrant has a production capacity that can serve a limited portion of the market only and the incumbent does not fear that the entrant wants to take over bigger portions of the market.
b. The incumbent has a big share of the market and would lose lots of profit when reducing the own price for all of its customers to undercut the entrant’s price.
c. The difference between the price of the entrant and pre-entry price of the incumbent is high, so that it hurts the incumbent to lower prices for all of its customers.
Commitment
Limit Pricing/Predatory Pricing
     * low demand
     * low cost incumbent
Pre-emption

Competitive Strategy Chapter 2 Soft Cooperative Commitment

Reputation building is a form of cooperative commitment. ( With soft commitment, companies try to build a reputation as a fair and cooperative player – in the hope that the competitors treat the company in a fair and cooperative way.)
Implementing a most favoured customer clause is a form of cooperative commitment: With such a clause you cannot easily reduce prices in a specific market segment or region in order to fight for market share with a competitor. Once you reduce prices in a specific market segment or region, you have to offer the same price to every other customer and refund the price difference to those who have bought your product earlier on. This is they price wars become very costly and hence less likely. Because the other market participants do no suffer from implementing such a  clause. It is a soft rather than an aggressive commitment.
A self binding commitment is another form of cooperative commitment: You make a binding decision such as particular investment that eliminates those moves/actions which would lead to fierce competition. The other market participants do no suffer from this decision.
The most favored customer clause says that every customer gets the same price. If the company decreases its price, customers who bought the product previously at a higher price get refunded. Hence, if the company decreases its price, e.g. to fight back a certain group of customers with heavy price cuts, the company has to reduce its price also for all the other customers and refund previous buyers. This makes price cuts very expensive and reduces the likelihood of a price war.