Topic: Creating Value through e-business Strategy
The Newsroom and Current Events:
This is the place to post links to current items from newspapers, magazines, journals or blogs. Explain how this news item or journal article is applicable to the topic from this week’s learning.
Type in a descriptive topic heading and post your comments.
Use APA format for in-text citations and the references list.
Market valuation and perception
The first video is related to United Airline’s recent blunder in the handling of a passenger on their flight. At the time, airlines were just getting their pricing power back and enjoying healthy profits. The poorly handled situation has led to a drop in share price, leading to a subsequent drop in valuation of the company.
The other video is about Tesla. Tesla has eclipsed Ford and GM in market cap valuation in an industry that is displaying softer sales and much lower volumes. The enthusiasm for the brand is leading to a surge in optimism about the stock, while industry peers are pulling back on sales and spending more on incentives while inventories increase. Tesla is a prime example of how marketing and brand management can help a company compete in an industry that is currently struggling to maintain sales.