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Starlink is a satellite constellation internet service created by SpaceX, a spacecraft engineering company founded by Elon Musk, which enables internet connection in rural areas where the internet is limited due to geographical isolation. On February 27, 2022, Elon Musk started to provideStarlink stations in Ukraine—for the ones suffering from ruthless attacks by the Russian forces. The Starlink stations were supported to restore Ukraine's disrupted internet services. While this may seem like Elon Musk's only intention,to help Ukraine overcome its military crisis with technology, Musk's actual plan is to test out his prototype and benefit from its marketing effect.
When Musk decided to provide the Starlink system without charging the Ukrainian government, the Starlink system was still in the finalization process. Only after testing the various functions in Starlink, Musk could commercialize the company's product.. However, for the prototype to be actually tested effectively, a real-world situation is the only optimal condition—which is a challenge itself to find an appropriate real-world situation. Luckily, for Elon Musk, there was a perfect scenario for the Starlink system to be activated for its final product: The Russo-Ukrainian War. On February 25, 2022, Ukraine suffered from a massive cyberattack from Russia that caused an Internet blackout in cities such as Kharkiv and Mariupol. This disruption blocked military communications, which are essential at all times during a war. Spotting this issue, Elon Musk responded to the Ukrainian government's tweet to support their internet services. From this situation, Elon Musk tested out the Starlink stations on a global scale.
Besides trying out his prototype, Elon Musk gave support in order to reactivate Ukraine's internet system and to solidify the reputation of SpaceX and himself as problem-solvers for communities in need of help. After the official statement Musk made through his tweet on deploying Starlink stations in Ukraine, residents and government officials in Ukraine praised him as a hero. As he anticipated,Musk was able to gain a positive reputation amongst not only Ukrainians but also the public that noticed his benevolence through the media. It is natural that when the CEO of a company receives positive attention, the company gains similar reputation at the same time; in the case of Elon Musk, Tesla and SpaceX. Although there isn't a financial statement that lets us know the financial benefitSpaceX gained from this incident, there is a clear long-term benefit they gained globally— resolving a national problem. Those benefits include building a good brand reputation and receiving attention from the public as a growing corporation.
Elon Musk's participation to help restore the internet system in Ukraine during the times of the Russo-Ukrainian War has several intentions, including the purpose of helping the Ukrainian society to overcome the crisis they are going through. However, there are several other reasons that caused Elon Musk to decide to deploy his products in Ukraine, such as to test out his unfinalized product in a real-world situation before it actually begins to commercialize, as well as the marketing effects it brings by building a positive reputation to Musk and his companies.
Works Cited
Ians. "Ukraine Struggles with Internet Blackout after Russian Invasion." Business Standard News, Business-Standard, 25 Feb. 2022,
https://www.business-standard.com/article/international/ukraine-struggles-with-internet-blackout-after-russian-invasion-122022500365_1.html.
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Apple Incorporated is the world's leading company in the IT sector. While not limited to developing hardware and software, the company pays tremendous attention to shaping the company value, perception, and image that would assist in raising traffic, thus increasing revenue. It is crucial to note that all the steps taken by Apple are closely tied to increasing revenue—the utmost goal of all companies. Apple during the Steve Jobs era primarily focused on enhancing user experience by paying attention to the material of the packaging and the aesthetics of their products—so much that they would compromise performance. These actions were all taken to fluctuate the demand so that the company would gain a "premium" image.
Now, under Tim Cook, the company undergoes major changes by releasing many variants of the same product at overlapping price points to influence consumers to purchase the more expensive product. This is most easily reflected in Apple's iPad lineup. There are four variants of the iPad: the iPad, the iPad Mini, the iPad Air, and the iPad Pro—listed from the cheapest to the most expensive. Due to relativity in marketing, people tend to purchase the middle options when consuming products. So, when there are only two options, one cheap and one expensive, it is difficult to anticipate which one would be better-selling than the other. However, when there are three or four options available, people would choose the middle options, as they do not want to be at the ends of the poles. Dan Ariely introduced an example in his novel Predictably Irrational, regarding selling television. When there are three televisions, each priced $690, $850, and $1480, people tend to purchase the $850 product, when the other two products may be at a better value than the $850.
Apple is directly applying this psychological trend by placing $500 and $600 iPads in the mid-ranges. Their iPad Pros, which adapt their latest cutting-edge technology, are not intended for maximizing their sales. It serves the position that would pave the way for increasing sales of the mid-ranges. Additionally, they use the Pro lineups to include all their latest technological achievements—since the company has to demonstrate their level of technology despite whether or not customers truly desire it.
Apple is making an attempt to dissolve the barrier separating the iPad and the Mac, as evident from their iPad slogans from past years: "Your next computer is not a computer." While there may be debates arising regarding this topic, looking at their prices, the iPad and the Mac are in close proximity in prices. When configuring the 12.9" iPad Pro with its keyboard, the cheapest configuration would cost $1400, while the MacBook Pro is priced at $1300. This would result in a debate among consumers regarding which product to purchase. While the two products are of different domains, they both contribute to Apple's revenue—again, the objective of companies.
Another step Apple is taking is to increase inter-competition among their products, as Apple aims to create a consumer community where hesitating customers would ultimately buy Apple products, just not sure which to choose. This intention is reflected in their theme of continuity since the Steve Jobs era. Jobs emphasized how different Apple products had to be seamlessly integrated as a whole, which has well aged into 2022. Apple recently introduced its credit card, securing users more tightly in their ecosystem and making it harder for them to move on. Consumers' dependence on Apple has significantly increased, and they are serving essential parts of the daily lives of humans.
It is inevitable that companies urge for more sales and thus revenue, while consumers seek a more reasonably priced product. This forms an equilibrium, a point of meeting in which transactions are made. In other words, when a consumer purchases a product, that equilibrium is reached—the consumer is compromising their objectives in exchange for a product. In close analogy to a spider web, the company has countless strategies that persuade the masses to continue using its products. Not only the ones discussed in this article but many more that people are yet to know about. While confidential information are off to anyone out of the incorporation, it is logical to analyze Apple's strategies—for better or worse.
Works Cited
Ariely, Dan. "The Truth about Relativity." Predictably Irrational: The Hidden Forces That Shape Our Decisions, Harper, New York, 2010, pp. 1–23.
So-called '代工 (dai gong)' or illegal retail traders are merchants who trade goods bought from abroad without being regulated by laws or taxes. Tax is a compulsory financial charge imposed on individuals or firms by the government to maintain society through public services. It would be problematic for stakeholders to not pay taxes as it would decrease the government budget that could be used to achieve better living standards for the citizens. Retail traders who contributed to the low collection of tax began acting as early as the 1970s, in countries including Korea, Japan, and China in forms of exporting trending goods directly from abroad. Among various types, this article will focus on the Chinese traders that export goods from Korean duty-free shops.
The roles in the tourism industry are divided into three- consumers, tour agencies, and sellers (duty-free shops). Conventionally, the tour agencies attracted travelers, sent them to the producers who provided goods and services, and paid the sellers with what they got paid by the travelers. However, as the number of sellers increased faster than consumers, some tour agencies turned into individual retail traders that bulk purchase goods from one country to sell them in their country at a lower price than their municipal rate. This was highly welcomed by the sellers, as the consumption of individual retail traders highly contributed to their total sales. The sellers soon started competing, striving to capture more of them. However, due to the nature of duty-free shops, they were not able to compete through product differentiation but only through price competition. This led them to create a concept called consumer commission, which is a charge duty-free shops pay to the tourist bureau or retail traders for change of attracting tourists to their shop or bulk purchasing. This price competition did benefit the retail sellers but not duty-free shops, as they all had to give as much consumer commission as possib
The problem is that this competition has gone too far. Over 1.3 billion US dollars (1.9 trillion KRW) was paid by the Korean duty-free shops as consumer commission a year, which is problematic not only as a transaction in the parallel market but also because of the sheer loss it causes to the Korean economy. This situation has only been exacerbated by the COVID-19 crisis, as the tourism industry was one of the most hardly struck industries. Duty-free industries were left with a vast number of stocks and extremely low sales rates. In consequence, the duty-free shops had no choice but to increase the consumer commissions to attract as many consumers as possible. According to the Korea International Trade Association, it has been recorded that Korean duty-free shops paid around 2.7 billion US dollars (3.9 trillion KRW), which is more than double the amount before the COVID-19 situation.
At this point, government intervention seems inevitable. On May 15th, The Ministry of Culture, Sports and Tourism announced that tour agencies that sell low-quality, low-priced travel plans will be investigated. This was meant to restrict and withdraw possible illegal individual retailers. However, the travel agencies found various vulgar tricks to find loopholes in the regulation. Small, subpar companies may merge into a corporate organization with government approval or could register multiple entities in case one is thrown out. Officials surely know the agency's plan to go through loopholes. The real problem is that they have done nothing but declare they will impose "stern actions" again and again.
One hope is that the COVID-19 situation is restoring, opening up countries' borders, and giving back the popularity of the tourist industry. This will allow consumer commission rates to fall due to the reduced need for 'dai gong' with an increased consumption rate due to a bigger number of tourist influx. Nonetheless, the post-covid consumer commission rates were still irrationally high. Therefore, the government's more forceful action is required to stabilize the unrealistically high rate of consumer commission and aim for the complete destruction of the 'dai gong' culture in the long term.
At this point, government intervention seems inevitable. On May 15th, The Ministry of Culture, Sports and Tourism announced that tour agencies that sell low-quality, low-priced travel plans will be investigated. This was meant to restrict and withdraw possible illegal individual retailers. However, the travel agencies found various vulgar tricks to find loopholes in the regulation. Small, subpar companies may merge into a corporate organization with government approval or could register multiple entities in case one is thrown out. Officials surely know the agency's plan to go through loopholes. The real problem is that they have done nothing but declare they will impose "stern actions" again and again.
One hope is that the COVID-19 situation is restoring, opening up countries' borders, and giving back the popularity of the tourist industry. This will allow consumer commission rates to fall due to the reduced need for 'dai gong' with an increased consumption rate due to a bigger number of tourist influx. Nonetheless, the post-covid consumer commission rates were still irrationally high. Therefore, the government's more forceful action is required to stabilize the unrealistically high rate of consumer commission and aim for the complete destruction of the 'dai gong' culture in the long term.
Works Cited
"Will a Crackdown Work? (KOR)." Korea JoongAng Daily, 16 May 2018, https://koreajoongangdaily.joins.com/2018/05/16/bilingualNews/Will-a-crackdown-work-KOR/3048206.html.
기자 박슬기. "'끝 없는 먹구름' 면세점, 따이궁 싹쓸이에 피해만." 한스경제(한국스포츠경제), 6 Feb. 2022, http://www.sporbiz.co.kr/news/articleView.html?idxno=609441.
기자 양원석. "'따이궁' 사라진 면세점... '주류' 앞세워 국내 고객잡기 안간힘." 시장경제, 11 Sept. 2022, https://www.meconomynews.com/news/articleView.html?idxno=70547.
따이궁 싸들고 가는 게 싫어서…'루이비통' 시내면세점서 안 판다 - 머니투데이. https://news.mt.co.kr/mtview.php?no=2021060314461253048.
배정철 기자 . "'슈퍼甲' 따이궁에 허덕이는 면세점들." 한경닷컴, 25 Jan. 2022, https://www.hankyung.com/economy/article/2022012533051.
"코로나 덫에 걸린 면세점, 중국 보따리상에 3조9천억원 수수료-무역뉴스." 한국무역협회, https://www.kita.net/cmmrcInfo/cmmrcNews/cmmrcNews/cmmrcNewsDetail.do?pageIndex=1&nIndex=+70953&sSiteid=1.