Impact of the Internet on Developing Countries

Impact of the Internet on Developing Countries Abstract The Internet has completely changed the information management scene in developed countries. It has improved the communication systems and has developed user-friendly environments for information sharing and exchange. The benefits of the Internet in developed countries have inspired the developing countries to develop the Internet and use it to their benefit. The Internet is now changing the information practices in various sectors in developing countries. The impact of the Internet has caused developing countries to modify traditional methods of conducting information business by setting up new sources of information and new methods of communication on a global basis. The Internet has helped the developing countries to take advantage of access to global sources of information in order to improve their economic markets. In this paper we will discuss the evolution of the Internet along with the atmosphere, which initiated the growth of the Internet in developing countries. We will touch upon the constraints involved in promoting Internet growth, the models used to enhance Internet growth, the areas benefited by the Internet and the future of Internet in developing countries. We have focused our discussion on the impact of the Internet on the two most populous developing countries, India and China. Introduction In todays world where globalization is inevitable if you want to succeed, the Internet is your only respite. The Internet has revolutionized information technology and made information access across boundaries very easy. It has spread in all spheres of life and you cannot think of life without the Internet. Come to think of it, how did the Internet evolve and how did it become such an essential part of our lives? The Internet has created competition by bringing many international and indigenous information technology vendors on to the same platform and has raised the standards of quality of services. Even though the Internet has its advantages, the developing countries are facing a lot of issues in using it to achieve maximum benefits. Some concerns are related to the infrastructure costs, language and cultural barriers, political barriers and economic costs. If the issues related to the growth of the Internet can be tackled, there would be phenomenal growth in the economy of the developing countries due to the benefits of the Internet. Statement of Purpose The three major aspects involved in the overall development of a country are economic, political and social. As it is evident from the success of the Internet in developed countries, and will be clear from the examples stated in the paper, we can see that the Internet plays a very important role in all these aspects. It is evident from the extent of usage of the Internet in our daily lives that it has and will continue to change the way we live. How it has changed, and how it will continue to change our lives, is the reason for discussion on the topic of à ¢Ã¢â€š ¬Ã…“Impact of the Internet in Developing Countriesà ¢Ã¢â€š ¬Ã‚ . We are discussing the impact of the Internet specifically on developing countries because the awareness and number of users of the Internet is still growing. As compared to the number of users of the Internet, the effect of the benefits of the Internet has been phenomenal. Evolution of the Internet The idea of the Internet originated about 25 years ago at the US Defense Department Advanced research Projects Agency (ARPA), to keep track of data through computer hardware and software. The Internet is now a complex web of networks connected with high-speed links cutting across countries. There are no set boundaries for the Internet in cyberspace. Recent statistics show 50,000 networks in more than 100 countries with more than 50 million users (MIDS press release). It is estimated that the rate of growth in Internet use is around 20 per cent a month. Currently the Internet is not proprietary and is available to anyone with computer access connected to the external world. Since the USA launched the information superhighway in 1994, the Internet has come to play an ever-increasing role in the vast information market in many countries. Malaysias Prime Minister, Mahathir Mohammed, once said: à ¢Ã¢â€š ¬Ã…“It can be no accident that there is today no wealthy developed country that is information poor, and no information rich country that is poor and underdevelopedà ¢Ã¢â€š ¬Ã‚  This statement emphasizes the importance of the Internet for developing countries. From an international perspective access to and use of the Internet is unbalanced; there are obvious gaps between developed and developing countries in terms of the numbers of nets, hosts and users. Information Environment in Developing Countries China and India have the highest population among the developing countries. With the vast population, the market for the Internet in these countries is huge. Both India and China are information-rich countries with a long tradition of learning and applying their knowledge. Both countries have had phenomenal growth economically and are utilizing information technology and information management for the same. The reduction in the price of personal computers and the multimedia influx only accelerated the growth in Internet usage. For countries with vast information centers, the Internet proves to be the most valuable resource. Chinese general information systems are divided into six categories: (1) Information centers affiliated with the National Scientific and Technical Commission (2) Information centers belonging to central government ministries (3) Information centers of a provincial nature (4) Information centers of a specialized nature affiliated to regional governments (5) Information centers affiliated with state enterprises, universities and other research institutions (6) Information centers of non-governmental, regional, professional and similar bodies In India, at the national level the main sources of information include: (1) Various line ministries; (2) The Central Statistical Organization (CSO) (3) The National Sample Survey Organization (4) The Registrar-General of India (RGI) (5) The National Information Center (NIC) (6) The Center for Monitoring Indian Economy (CMIE) (7) The Federation of India Chamber of Commerce and Industries (FICCI) (8) Tata Energy Research Institution (9) The Center for Science and Environment Given such huge information centers in both countries, the public need for the Internet and its potential are vast. Areas of concern in Developing Countries Three major areas of concern about the Internet in developing countries are: (1) National information policy (2) Regulatory framework and information infrastructure (3) Proper education and training National information policy Awareness of various information sources in developing countries is limited to oral form. Awareness in print is negligible. The national information policies in developing countries concentrate on trade, international relations, national security and technology, but they barely concentrate on electronic access of information through the Internet to achieve maximum benefits. For rapid economic growth, official documents of developing countries should include high priority plans to implement electronic information delivery systems. National policy documents, like five-year plans, should contain policy statements and should be implemented on time. Sufficient funding should be available during planning and implementation phases of electronic information access models. Regulatory framework and information infrastructure Developing countries have a regulatory framework in place, which makes protection of investment, intellectual property and individual privacy compulsory in the information market. Developing countries have legal frameworks in place, which deals with private sector involvement, skilled human resources, standards and implementation. Regulatory frameworks for information do not exist. Even though information technology and telecommunications have made a way into all the markets in a developed country, in developing countries, information technology is still seen only as a means to support information management systems, finance and accounting facilities and data processing. As compared to the population numbers, the per capita penetration of computers in both India and China in the area of small office/home office (SOHO) is very insignificant. Telecommunications has also not yet picked up in India and China. If the information infrastructure were to cover the wide Indian and Chinese markets, and if technology was used for global access to information through the Internet, there would be a phenomenal economic growth in these countries. Both the countries need to urgently address the awareness of the Internet and its importance for policy makers at the political level. Proper education and training As in developed countries, workforces in developing countries are also adopting knowledge-based methodologies rather than labor intensive ones. Surveys have shown that Internet use is associated with higher education in developed countries. The same applies to developing countries. Literacy rates in developing countries needs to be improved to a great extent. The governments, central, state and local and learning institutions and civic associations should take responsibility and should work together to raise the literacy levels in developing countries. Information professionals should be trained on priority. Trained information professionals can make better use of the Internet and will be more efficient in acquiring, organizing and propagating information. Developing countries are often concerned about preserving language and culture heritage and supporting political systems. They are weary of foreign economic formats. Thus, proper trainings and seminars for information professionals is a must. These trained professionals can help educate the masses and can take advantage of the benefits of the Internet. This would help in sharing of knowledge through cyberspace and would help in increasing the value of the global information sector. The Internet will support development in the following ways: * Assess the information capacity of the country and determine the needs of users, organize and synthesize information and provide access to internal and external information * Disseminate information to meet the public needs and private sectors and the daily information needs of the general public The governments role in utilizing the Internet is very critical. It influences the appropriate use of the Internet for social and economic change in the shift from labor-intensive production to knowledge based information industries. Also, it reveals the market to a strong private information sector by defining public and private sector relationships. In order to destroy monopolies and encourage competition among international and indigenous vendors, it redefines telecommunication policies. Internet Growth in India Internet service in India started in 1994 with government being the monopoly provider. Service was costly and unreliable and by 1996 there were only 4,000 subscribers nationwide. In 1998, the ISP market was deregulated. By 2000, there were 225 ISPs (India Infoline 2001) and prices had dropped 60%. PC prices also dropped significantly owing to lowering of import duties. The subscriber base then grew rapidly, reaching 1.8 million in January 2001. E-mail and chat are the most popular applications (Natarajan 1999). E-commerce is yet to find wide acceptance but is expected to touch $2.3 billion by 2002 (Pai 2000a). PC penetration in urban middle class households has increased in recent times (Dataquest 2000; Pai 2000b), and has led to an increase in the Internet subscribers. The popularity of the Internet has also had a feedback effect on PC sales (Dataquest 2000). The demand for bandwidth outstrips supply thirty-fold (Desai 2001). As of December 2000, there were only 28 million telephone lines equal to a tele-density of 3.5/100 persons. Alternatives to analog modems, such as ISDN lines or cable modems, are limited. Regulations have also stifled Internet growth. The ban on Internet telephony and the requirement to obtain security clearance before setting up an international gateway are two examples. In short, Internet diffusion in India started very recently and is characterized by high telephone charges, limited customer acceptance of E-commerce applications, limited telecommunications infrastructure, and restrictive regulations. These characteristics are prevalent in many other developing countries as well. The VSNL, is still by far the dominant player in the ISP market, and maintains the backbones that most private firms will have to use to provide access to consumers. There is currently one Level 1 gateway owned by VNSL, as well as a Level 2, through which most private companies will have to connect. 1995/96 1996/97 1997/98 1998/99 1999/2000 2000/2001 2001/2002 States Popn CAGR (81-91) Estd Popn CAGR of Lines Actual Lines à ¢Ã¢â€š ¬Ã‹Å"000 Lines/100 Estd Lines Lines/100 Estd Lines Lines/100 Estd Lines Lines/100 Estd Lines Lines/100 Estd Lines Lines/100 Estd Lines AP 2.19 696.98 20.44 797 1.35 959 1.59 1155 1.87 1391 2.20 1675 2.60 2017 2.58 2044 Assam 1.20 227.37 21.59 107 0.56 130 0.68 158 0.81 192 0.98 233 1.17 283 1.16 284 Bihar 2.14 903.30 19.97 280 0.36 335 0.43 401 0.50 481 0.59 577 0.69 692 0.68 694 Gujarat 1.94 428.65 16.52 916 2.44 1067 2.79 1243 3.19 1448 3.64 1687 4.16 1965 4.18 2012 Haryana 2.45 174.52 21.31 295 2.00 357 2.36 433 2.80 525 3.31 636 3.91 771 3.90 786 Himachal 1.91 53.60 28.27 110 2.58 141 3.23 180 4.06 230 5.10 295 6.42 378 6.45 387 JK 2.57 82.29 13.61 53 0.71 60 0.79 68 0.87 77 0.96 87 1.05 98 1.02 98 Karnataka 1.93 466.52 20.32 784 1.98 943 2.34 1134 2.76 1364 3.26 1641 3.85 1974 3.85 2013 Kerala 1.35 307.74 22.24 681 2.67 832 3.22 1017 3.88 1243 4.68 1519 5.64 1856 5.71 1905 MP 2.41 700.25 22.47 623 1.06 762 1.27 933 1.52 1142 1.82 1398 2.17 1712 2.14 1730 Maharashtra 2.32 831.86 18.70 2425 3.38 2878 3.92 3416 4.55 4054 5.28 4812 6.12 5711 6.19 5904 Orissa 1.85 327.44 19.68 166 0.59 198 0.69 236 0.82 282 0.96 337 1.12 403 1.11 405 Punjab 1.91 210.22 25.23 571 3.34 715 4.1 895 5.03 1120 6.18 1402 7.60 1755 7.70 1813 Rajasthan 2.53 468.70 28.14 494 1.32 633 1.65 811 2.06 1039 2.57 1331 3.21 1705 3.17 1727 TN 1.44 570.17 22.01 1014 2.14 1237 2.57 1509 3.09 1841 3.72 2246 4.47 2740 4.50 2798 UP 2.30 1464.71 25.53 810 0.68 1016 0.83 1275 1.02 1600 1.25 2008 1.54 2520 1.51 2537 WB 2.23 714.44 15.56 610 0.96 704 1.09 813 1.23 939 1.39 1085 1.57 1253 1.55 1265 à ¢Ã¢â€š ¬Ã‹Å"The above table represents an extrapolation based on the s available at the end of the 1995-96 fiscal year. The s show that the penetration of phone lines is in fact growing faster than the population. In addition, the s represent only the penetration of public services, whereas the latest telecom policy calls for added investment in the private sector. Nevertheless, it is clear that the current trends in growth will not result in the planned telephony penetration into India (7% by 2005 and 15% by 2010). In addition, in many cases the s are skewed towards the urban regions within the states, and mask a poorly developed rural sector. Thus, the general indication at this juncture is that there is a clear need for dedicated infrastructure developed throughout india. The Impact of the internet in developing countries http://cse.stanford.edu/classes/cs201/projects-00-01/third-world/india-overview.html Modeling Internet Growth To get a thorough understanding of the technicalities of Internet diffusion in developing countries, we will discuss a model, which combines contagion effects and their interaction with external factors. There are a variety of methodologies available in the market to represent dynamic processes. We will be discussing the SD (Sterman 2000) model. Some of the reasons for choosing this model are listed below: * The feedback loop, which is the main structural element in an SD model, makes the model well suited for capturing the interaction among different drivers of diffusion over time * The SD model not only represents quantifiable variables, but also soft variables, which help in understanding because the diffusion context has both social as well as technical aspects * System behavior in SD models results from interaction among its feedback loops When you build an SD model, you start with the development of a causal loop graph that consists of a collection of causal links. Each of these causal links has a certain polarity. A positive (negative) link is associated with a reinforcing (balancing) relation. A positive (negative) change in the cause in this scenario leads to a positive (negative) change in the effect. Small lines intersecting causal links represent the delays in an effect. A causal loop is the result of a closed sequence of causal links and the loop polarity can be easily understood from the individual link polarities. The causal loop graph results in a mathematical model in which relationships are illustrated by means of time varying difference equations. A what-if analysis is conducted by simulating the mathematical model under different parametric and structural alternatives. The given above depicts the causal loop diagram for our diffusion model. The first of validation is the verification of each of the structural components involved. We will be discussing the foundation for the core component, followed by the selected components that capture external factors that are typical of developing countries. At the heart of the diagram lies the contagion based Internet Adoption, which helps PC owners become Internet subscribers. Innovation Coefficient and Imitation Coefficient drive Contagion in the same manner as in Bass 1969. The causal loop structure consisting of the above five variables would result in the familiar S-shaped diffusion curve, if it did not have any other structural components. The basic contagion mechanism is augmented by external factors typical of developing countries. In the above , this is accomplished by driving the contagion parameters by external factors like PC price, tele-density and the level of competition allowed by regulation. Model validation Replicating observed behavior Replicating the observed behavior is the second stage involved in validating an SD model. The given above was transformed into the corresponding difference equations and was then implemented using the iThink package. The s given below provide a comparison of the simulated and observed behavior of subscriber base and growth rates respectively, using quarterly data for India from 1996 to January 2001 (Dutta. A, Roy. R, 2001) (Dutta. A, Roy. R, 2001) Conclusions from this model The validated model offers a synthetic environment that helps us in analyzing the effect of different external factors. Loop dominance analysis (LDA) was used in SD parlance in order to analyze the external factors. A dominant loop is one, which is mainly responsible for model behavior over a particular time interval. The relevance of LDA is that it helps in identifying which loops need to be strengthened and/or weakened, through policy actions, so that we can achieve maximum desirable behavior. Two conclusions analyzed from our model, using LDA, are listed below: * Low infrastructure facility, high hourly usage costs and low geographic dispersion are dominant in the diffusion process. Regulatory policies would help in weakening these variables and therefore would dominate the future diffusion processes. * Besides the industrial countries, security concerns have not spread intensely in developing countries. One explanation for this could be that e-commerce has not yet got a hold in developing countries. Political barriers hindering the growth of the Internet The political atmosphere in India is to blame for the slow growth of both, the Internet access and the telecom infrastructure. In spite of the liberalization of Indian economy in 1991, the telecommunication sector remained in tight control of the government. This resulted in a number of problems for both, private firms as well as consumers. Even though the government has increased its interest in promoting the growth of the Internet throughout India, there is still a need for the review and/or removal of regulations still in place if we want the telecom industry to flourish. The government should rethink its current policies on telecommunications, take into account the global changes brought the about by the advent of new technology, and work to create a market environment that is favorable for investment by both local and international IT firms. Impact of the Internet on various sectors in developing countries The Internet has considerable potential in various sectors in developing countries: à ¢Ã¢â€š ¬Ã‚ ¢ Education à ¢Ã¢â€š ¬Ã‚ ¢ Banking and Finance à ¢Ã¢â€š ¬Ã‚ ¢ Business à ¢Ã¢â€š ¬Ã‚ ¢ Government à ¢Ã¢â€š ¬Ã‚ ¢ Telecommunications à ¢Ã¢â€š ¬Ã‚ ¢ Travel and Tourism We will discuss the impact of Internet on some sectors in detail. a) Impact on Education The world of education is undergoing some major changes, the most important of which is the use of the Internet in teaching and learning. Before the advent of the Internet the main sources of information for students were the teachers and the books available in the libraries. Now, thanks to the Internet, teachers are just one of the sources of information. Global access to information has widened their horizons to gain maximum knowledge. In this à ¢Ã¢â€š ¬Ã…“Information ageà ¢Ã¢â€š ¬Ã‚ , the Internet has helped involve students in active learning. They are more interested in hands-on learning, which presents them with practical, real-life experience. Studies have revealed that this style of learning results in better retention and understanding of topics. Also, learning is now not confined to the walls of the institutions. The easy and quick access to infinite resources of information has encouraged out of the box thinking. Besides these benefits, the Internet has helped in personal development of students. Social interaction over the Internet has helped students who are shy to interact and improve their communication skills. With the advent of the Internet, the concept of online exams has also evolved. It has become easier to appear for exams like GRE, GMAT, TOEFL, technical certification like SCJP etc. These exams are now conducted online, which has helped people in developing countries to enhance their knowledge. It has reduced the overheads and hassles involved in personally going to exam centers. One of the best examples would be CISCO human network which has promoted education in remote areas of almost all developing countries like India, Africa etc. by using the Internet for teaching through virtual classrooms which use video conferencing. b) Impact on Banking and Finance Around the clock banking is one of the biggest advantages of Internet use in banking. With the help of the Internet, we have remote access to the banks, which helps in transfer of money overseas with concepts like RTGS from RBI, India. It has reduced daily visits to the banks because we can get regular updates about our bank details online. Expenditure on administration services, paper, stationery etc. has been reduced which has helped in increasing the profit margins of banks besides being environment friendly. Internet has eliminated the tedious paperwork involved in banks, and has provided easy and fast access, making life much easier for bankers as well as customers. The concept of digital signatures has also picked up and it will only enhance the benefits of Internet banking. Tedious and monotonous process of dealing with brokers has been eliminated with the help of Online Trading. Demat accounts have eliminated the concept of physical shares. c) Impact on Business The Internet has provided a global source of information, which helps in developing new strategies and methodologies to enhance businesses. Even for the smallest of traders, constant updates of the prices of commodities are available online. Some companies use the Internet to build direct associations with their customers. Others are using the Internet to bring together buyers and sellers in the new tremendously efficient marketplaces. The Internet has taken the concept of e-Commerce to e-Business. The growth of the Internet has promoted inter-company trade of goods over the Internet. The best examples would be of online websites like e-Bay and other companies promoting online gifting systems. Airline industries have also benefited a lot from the Internet. Tickets can be booked online at any time of the day. d) Impact on Advertising The companies attract customers by building brand awareness and by providing market information over the Internet. This can be seen in the recent IPO (Initial Public Offerings) releases like those of Reliance Petronet. In e-business, the profits are generated not only by speeding up and automating the companys own internal processes but also by recognizing its ability to spread the efficiency benefits to the business systems of its suppliers and customers. The capability to team up with others may be just as much of a competitive advantage as the ability to deploy the technology. e) Impact on e-Governance With the growth of the Internet, people have realized that the use of information and communication technology to provide and improve the government services can be highly beneficial. Using the Internet for e-Governance is a convenient and cost effective method to provide people access to current information. Internet can promote greater citizen participation in the nations capital. It will encourage people all over the country to interact with politicians to make their voices heard so that the political situation can improve and the countries can progress. E-Governance would make the political system more efficient, provide improved services, better accessibility of public services and would make the processes more transparent and accountable. Nowadays, online counseling for entrance exams has reduced the overhead for the government institutions. Developing countries are now using the Internet to manage the biggest networks like railways. All travelling transactions can now be done online on websites like www.irctc.co.in (India). f) Impact on Telecommunications Internet has helped the developing countries in reducing the national as well as international call rates. The BRIC (Brazil, Russia, India and China) nations have all taken up the concept of VOIP (Voi

Emily Dickinsons Use of Loss in Poem 67 and Poem 1036 :: Emily Dickinson Poem 67 Poem 1036

Emily Dickinson's Use of Loss in Poem 67 and Poem 1036 Many of Emily Dickinson's poems touch on topics dealing with loss. While loss is generally considered a sad or unfortunate thing, Dickinson uses this theme to explain and promote the positive aspects of absence. Throughout many of her poems, one can see clearly that she is an advocate of respecting and accepting the state of being without. Dickinson implies that through these types of losses, one can gain a richer and stronger appreciation for both success and belongings. Poems 67 and 1036 are two that capture the extent of Dickinson's feelings on loss. By understanding and comparing these two works, it is easy to recognize that Dickinson believes that possessing neither material possessions nor the joy of success are the real keys to happiness. Poem 67 focuses on a battle that could be considered both literal in the sense of a war, or more symbolic as it could act as the anthem for any type of loss or failure. Lines 1 and 2 of the poem explain that success or winning is most valued by those who never prevail. Dickinson is saying that loss creates the strongest appreciation for a win. The lines 3 and 4 state "To comprehend a nectar/ Requires sorest need." This implies that necessity is the only way in which to understand what you want. Next, in the second stanza, Dickinson uses words that denote an actual battle has taken place by saying: Not one of all the purple Host Who took the flag today Can tell the definition So clear of Victory. She is suggesting that winners cannot value their victory. The final stanza emphasizes the fact that the defeated group understands the meaning of victory when she says that "The distant strains of triumph/ Burst agonized and clear!" Dickinson describes the dying soldiers comprehending the meaning of winning the battle in a way that the victors never will. The reason that the winners can't understand the significance of their victory is that they did not taste defeat. The loss of a battle demonstrates to the unsuccessful how far they are from feeling the exuberation of success. Poem 67, as in line with Dickinson's theme of loss, suggests that being in a losing state, at least sometimes, is better than winning all the time. The deflated feeling of being unsuccessful increases the state of appreciation one has for winning.

Let Freedom Ring Essay example -- Civil Rights Movement Equality Paper

Let Freedom Ring The Civil Rights Movement was the catalyst, the march that ignited the flame of justice in the twentieth century. It coerced America as a nation to reevaluate itself, to reevaluate what it stood for.... We hold these truths to be self-evident†¦ Hot, black coffee trickled down the dark skin on Henry Moses’ back. †¦that all men are created equal†¦ â€Å"Get out of here, nigger! Go back to your kind!† an angry White man shouted as he continued pouring. †¦that they are endowed by their Creator with certain unalienable rights†¦ Moses sat silently, keeping his seat at the lunch counter in downtown Jackson. †¦that among these are life†¦ Lunch counter stools were for White folks only. It had always been that way. Moses, just 21, knew that. †¦liberty†¦ â€Å"It was just a part of their heritage,† he says now. â€Å"They thought that Negroes were filthy†¦ scum. Just somebody you don’t associate with. You don’t wait on ‘em, you don’t cut ‘em no slack whatsoever. This is just the way that they had been taught, the way they had been trained.† †¦and the pursuit of happiness. â€Å"And we were trying to change it† (â€Å"First in News†). Since the discovery of the new world by Europeans, Blacks--with the exception of the Native American Indians--have suffered immensely more than any other group in America. From the time the first African slaves stepped on American soil, their destiny changed forever. For over four hundred years, Blacks worked on fields and in homes of their White masters with no concept of civil rights in their daily lives. It was not until 1863, when President Abraham Lincoln read the Emancipation Proclamation, abolishing slavery, that civil rights and freedom became a possibility for millions of African-Americans. Soon th... ...story. New York: John Wiley & Sons, Inc. 1997. Bell, Derrick. Afrolantica Legacies. Chicago: Third World Press. 1998. Brink, William and Harris, Louis. Black and White. New York: Simon and Schuster. 1967. Button, James W. Blacks and Social Change: Impact of the Civil Rights Movement in the Southern Communities. Princeton: Princeton University Press, 1989. â€Å"First in News.† The Jackson Sun. 6 Nov. 2002. . Gates, Henry Louis, et al. African American: Voices of Triumph. Alexandria Time Life Books, 1993. Sullivan, Patricia. â€Å"Civil Rights Movement.† Africana: the Gateway to the Black World. 10 Nov. 2002. . â€Å"We Shall Overcome.† The National Park Services: Links to the Past. 6 Nov. 2002. .

Organizational Technology :: Technologies of Communication

We live in an age of communication. Communication is the problem and the opportunity addressed by a great deal of technology design and development. But because communication is an interpersonal and a social phenomenon, technology issues must be approached with a particular appreciation of human and social factors. The organization of societies today requires effective global communication between diverse and far-flung social and cultural systems. Only through technical mediation are we able to maintain the flows of commerce and information required by the world-wide interdependence. Technologies of communication become the means of production, or production format, of communication. Their use in communication is not transparent. In fact, technologies introduce new contingencies and context into communication. Analysis of communication and interaction in society today needs to account for the transformative effects of mediation. Technologies are rational by design, and in use, they rationalize human activity. Human communication and interaction, however, are neither rational nor designed. The difference between the technical and the human shows up in technology at what we call the "interface." In our case, we will consider this not just a user interface, but a social interface. It is social because it translates communication (messages, content) while also facilitating the subtle and tacit exchange of interpersonal acknowledgments. The latter, though they don't "say" anything, reproduce our relations. Social interface issues generally involve ambiguities of communication, intent, outcome and so on. These ambiguities result from technology's mediation of practices in which individuals are normally able to address and resolve ambiguities as they come up. It's at the social interface where the distinction between communication's content and participants' relationships becomes an issue, because the technology that's good for transmitting content may not be good for reproducing relationships. The implicit purpose of communication is to motivate a listener (or recipient) to do, or understand, something communicated. Thus the use of technology extends and limits the very power of communication. It extends our ability to access and connect, but limits our ability to communicate and bind. Repercussions can be seen at all levels of society, from individual and interpersonal to macro-social. Our study of communication technologies will borrow from pragmatics, which is branch of linguistics that emphasizes the "how" of what we say (in addition to the "what"). A pragmatics of mediated interaction would thus emphasize the production and performance of mediated communication and interaction, focusing on the practices developed around connectivity technologies.

Cost, Access, and Quality Essay

*Access to care may be defined as the timely use of needed, affordable, convenient, acceptable, and effective personal health services. Accessibility refers to the fit between the location of a provider and the location of patients. *Administrative costs are costs associated with the management of the financing, insurance, delivery, and payment functions. These costs include management of the enrollment process, setting up contracts with providers, claims processing, utilization monitoring, denials and appeals, and marketing and promotional expenses. *An all-payer system requires the participation of all major health care payers in a nationwide cost-containment program. APG stands for ambulatory patient groups, which are based on a patient classification and payment system designed to identify and explain the amount and type of resources used in an ambulatory visit. Patients in an APG have similar clinical characteristics, similar resource use, and similar cost. *Clinical practice guidelines (also called â€Å"medical practice guidelines†) are explicit descriptions representing preferred clinical processes. They are standardized guidelines in the form of scientifically established protocols designed to guide physicians’ clinical decisions. *Competition refers to rivalry among sellers for customers. In health care delivery, it means that providers of health care services would try to attract patients who have the ability to choose from several different providers. Although competition more commonly refers to price competition, it may also be based on technical quality, amenities, access, or other factors. *Cost-efficiency evaluates the relationship between increasing medical expenditures/risks and improvements in health levels. A service is cost-efficient when the benefit received is greater than the cost incurred in providing the service or the potential health risks from additional services. *Cost shifting refers to the ability of providers to make up for lost revenues in one area by increasing utilization or charging higher prices in other areas. *Critical pathways are case specific plans of medical care that identify along a time line w ho will provide what interventions and what the expected outcomes would be. *Demand-side incentives refer to the cost-sharing mechanisms that place a larger cost burden on consumers, thus encouraging consumers to be more cost conscious in selecting the insurance plan that best serves their needs and more judicious in their utilization. *Defensive medicine is the practice of medicine that involves prescribing tests and services that are not medically justified but are likely to protect physicians against possible malpractice lawsuits. *Fraud involves a knowing disregard for the truth. It generally occurs when billing claims or cost reports are intentionally falsified. It includes pro vision of ser vices that are not medically necessary and billing for ser vices that were not provided. *Outcome is the end result obtained from utilizing the structure and processes of health care delivery. Outcomes are often viewed as the bottom-line measure of the effectiveness of the health care delivery system. *Overutilization occurs when the costs or risks of treatment outweigh the benefits and yet additional care is delivered. *The term peer review refers to the general process of medical review of utilization and quality w hen it is carried out directly or under the supervision of physicians. *PRO stands for peer review organization. PROs are state-wide private organizations composed of practicing physicians and other health care professionals who are paid by the federal government to review the care provided to Medicare beneficiaries to determine whether care is reasonable, necessary, and provided in the most appropriate setting. *Quality has been defined as the degree to which health services for individuals and populations increase the likelihood of desired health outcomes and are consistent with current professional knowledge. *Quality assessment refers to the measurement of quality against an established standard. *Quality assurance is a step beyond quality assessment and is synonymous with quality improvement. It is the process of institutionalizing quality through ongoing assessment and using the results of assessment for continuous quality improvement (CQI). *Reliability reflects the extent to which the same results occur from repeated applications of a measure. *Risk management consists of proactive efforts to prevent adverse events related to clinical care and facilities operations and is especially focused on avoiding medical malpractice. *Small area variations refer to the unexplained variations in the treatment patterns for similar patients and health conditions in different parts of the country. *Supply-side regulation typically refers to antitrust laws in the U.S., which  prohibit business practices that stifle competition among providers, such as price fixing, price discrimination, exclusive contracting arrangements, and mergers deemed anticompetitive by the Department of Justice. *A top-down control over total health expenditures establishes budgets for entire sectors of the health care delivery system. Funds are distributed to providers in accordance with these global budgets. Thus, total spending remains within pre-established budget limits. The downside to this approach is that, under fixed budgets, providers are not as responsive to patient needs, and the system provides little incentive to be efficient in the delivery of services. Once budgets are expended, providers are forced to cut back services, particularly for illnesses that are not life-threatening or do not represent an emergency. *TQM stands for total quality management and is synonymous with continuous quality improvement (CQI). It is an integrative management concept of continuously improving the quality of delivered goods and services through the participation of all levels and functions of the organization to meet the needs and expectations of the customer. *Underutilization occurs when the benefits of an intervention outweigh the risks or costs, yet the intervention is not used. *The validity of a scale is the extent to which it actually assesses what it purports to measure. REVIEW QUESTIONS 1. What are the two main objectives of this chapter? 2. What are the three major cornerstones of health care delivery? 3. What is meant by the term â€Å"health care costs†? Describe the three different meanings of the term ‘cost.’ 4. Why should the United States control the rising costs of health care? 5. Name and describe the 9 major factors contributing to the high costs of health care. 6. What is a third-party payment/reimbursement? 7. Explain how, under imperfect market conditions, both prices and quantity of health care are higher than they would be in a highly competitive market. 8. Discuss price controls and their effectiveness in controlling health care expenditures. 9. Discuss the role of PROs (peer review organizations) in cost containment. 10. What are the two competition-based cost-containment strategies? 11. What does access to care mean? 12. What are the implications of access for health and healthcare delivery? 13. What is the role of enabling and predisposing factors in access to care? 14. What are some of the implications of the definition of quality proposed by the Institute of Medicine? In what way is the definition incomplete? 15. Discuss the dimensions of quality from the micro- and macro-perspectives. 16. Discuss the main developments in process improvement that have occurred in recent years.

Is censorship necessary? Essay

With the advent of new media, the dissemination of information has reached an unparalleled scale, bringing to the fore the inevitable reality of censorship. The issue of censorship has been a contentious one and conservatives argue for its instatement while liberals dispute its existence. In my opinion, I think that a form of censorship has to be put in place to maintain order in a society and protect the young from malignant content. However, many dispute the extent to which censorship should be put in place, arguing that censorship is a powerful weapon which can be abused by depraved individuals. Besides, they too argue that censorship is an ineffective tool in fulfilling its said purpose. Firstly, censorship remains imperative in maintaining order in a society. It impedes the dissemination of seditious content on the internet, thereby preventing any form of unhealthy social discourse and maintaining harmony among people. The dawn of the internet age has empowered people to voice out their own opinions whilst behind the perceived security of their keyboard. This freedom of speech enabled by the internet inevitably calls for some form of oversight over its users. Not long ago, online furore erupted over notorious sex bloggers Alvin and Vivian, who posted a photo of themselves eating â€Å"Bak Kut Teh† or pork ribs soup. What caused the controversy here was the catchline of the photo which read, â€Å"Happy breaking fast† in english. This resulted in a huge uproar from the muslim community as many felt that he was making a mockery out of the muslim tradition of fasting and abstinence from pork. Such racially insensitive remarks might damage the social fabric of a society, resulting in undesirable social implications and disrupting the racial harmony of a society. With censorship, such seditious content can be contained and order will be preserved. Censorship is also necessary to protect the young from the hordes of violent and sexual content found on the media. Along with the expansion of the internet, malicious content has proliferated across the media. Youths of today are being exposed to the media from a very young age and they are highly susceptible to influence from the media. Reality television shows such as WWE(World Wrestling Entertainment) portray scenes of violence as men take on one another in wrestling. What is particularly worrying here is that  most of these scenes are acted out and amplified for dramatic effect. Young children may not be able to discern reality from the virtual world and they may be influenced by the violent content. While there is no hard scientific data or causal link between media violence and real life aggression, psychiatrists have proven with empirical evidence that constant exposure to violent content ultimately has an impact on behaviour. Besides, the proliferation of pornographic cont ent on the internet is another cause for concern. With the internet, pornography is easily accessible to children and minors are viewing pornography at a very young age. The extreme nature of pornography might distort their views on relationships and promote a more liberal and permissive attitude towards sex among teenagers. This might be the cause of the rise in teenage pregnancies ,sexually transmitted diseases and other societal issues. In this respect, we can clearly see the need for censorship on the internet in order to protect the young from being negatively influenced by the media. However, censorship is a powerful weapon which can be abused by depraved individuals as tools of oppression. In authoritarian states where the media is controlled by the state, censorship allows for the incumbent to have complete control over its people. North Korea comes to mind where censorship and oppression is concern. The state-controlled media in North Korea censors nearly everything from the outside world and selectively reveals information to the people. This carefully orchestrated media campaign is used to boost the image of their supreme leader Kim Jong Un and build a cult of personality around him. Censorship in North Korea also helps in manipulating the masses. By blocking access to the outside world, people are unable to be discerning about the information they receive from the state media and they are blinded from the truth. From this perspective, we can see how censorship, when used unwisely, becomes a tool of oppression. Lastly, censorship is also ineffective in fulfilling its purpose and it is, in some cases, self defeating. Censorship has given rise to what is now known as the Streisand effect- whereby the act of trying to suppress information results in the greater spread of the information in question. Where censorship is practiced, there would certainly be attempts to  circumvent the system and access the censored content. Such is the case of the Great Firewall of China. While it is considered by many to be a huge success, there has been many methods of bypassing the system since its instatement in 2003. This illustrates the ineffectiveness of censorship in withholding information from the people. In this regard, we can see that censorship is not the best method in regulating the media. To sum up, i think that although censorship is not entirely advantageous to the people, it is still imperative in protecting the interests of minors and maintaining order in a society. Censorship acts as a regulator of the internet and it is something which will remain relevant in time to come.

Tiffany & Co Marketing Plan

MARKETING PLAN I. Executive summary†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦3 A. History of Tiffany & Co†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 3 II. Current marketing situation †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦7 A. Market overview†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 7 i. Market demographics and needs†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 6 ii. Market t rends and target market growth†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 10 B. SWOT analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦11 i. Strengths †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 11 ii. Weaknesses†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 2 iii. Opportunities†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 12 iv. Threats†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦13 C. Competitive and industry analysis †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦14 D. Product overview†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 17 E. Keys to success and critical issues†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦20. III. Environmental analysis †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦23 A. Macroenvironmental factors †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦23 B. Microenvironmental factors †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 24 C. Competitive strategy †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 24 IV. Marketing Strategy†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦25 A. Mission†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦25 B. Marketing objectives†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦25 C. Financial objectives†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦26 D. Target market†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 27 E. Positioning†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦27 V. Marketing Mix†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 28 A. Product †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â ‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 28 B. Pricing †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 30 C. Promotion †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 1 D. Channel †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦32 E. Service †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦34 VI. Marketing research †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦35 VII. Financials †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦37 A. Sales/revenue forecast†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 37 B. Expense budget†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦39 C. Break-even analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦40 D. Profit and loss analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 41 VIII. References†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 42 I. Executive summary A. History of the company The 1830s in New York City were a time of dynamic growth, extravagant tastes and golden opportunity for anyone with a little capital and an abundance of imagination. In 1837, New York became the proving ground for twenty-five-year-old Charles Lewis Tiffany and John B. Young, who opened a â€Å"stationery and fancy goods† store with a $1,000 advance from Tiffany's father. On their way to the new emporium at 259 Broadway, fashionable ladies in silks, satins, and beribboned bonnets faced a gauntlet of narrow streets teeming with horses and carriages and the hurly-burly of city life. At Tiffany & Co. they discovered a newly emerging â€Å"American style† that departed from the European design aesthetic, which was rooted in religious and ceremonial patterns and the Victorian era’s mannered opulence. The young entrepreneurs were inspired by the natural world, which they interpreted in exquisite patterns of simplicity, harmony and clarity. These became the hallmarks of Tiffany design, first in silver hollowware and flatware, and later in jewelry. Tiffany first achieved international recognition at the Paris Exposition Universelle in 1867. The company was awarded the grand prize for silver craftsmanship, the first time that an American design house had been so honored by a foreign jury. Tiffany was the first American company to employ the 925/1000 standard of silver purity. Largely through the efforts of Charles Lewis Tiffany, this ratio was adopted by the United States Congress as the American sterling silver standard. The silver studio of Tiffany & Co. was the first American school of design and, as one observer remarked, â€Å"a teacher of art progress. Apprentices were encouraged to observe and sketch nature, and to explore the vast collections of sketches and artwork assembled by Edward C. Moore, the head of the studio. By 1870 Tiffany & Co. had become America's premier purveyor of jewels and timepieces as well as luxury table, personal, and household accessories. At the turn of the 20th century the company had more than one thousand employees and branches in London, Paris, and Geneva. In 1878 Tiffany acquired on e of the world's largest and finest fancy yellow diamonds from the Kimberley diamond mines in South Africa. Under the guidance of Tiffany's eminent gemologist, Dr. George Frederick Kunz, the diamond was cut from 287. 42 carats to 128. 54 carats with 82 facets (most brilliant-cut diamonds have only 58), which gave the stone its legendary fire and brilliance. Designated the Tiffany Diamond, the stone became an exemplar of Tiffany craftsmanship. In 1886 Tiffany introduced the engagement ring as we know it today—the Tiffany ® Setting— an innovation that lifts the diamond above the band with six platinum prongs, allowing a more complete return of light from the stone and maximizing its brilliance. Today the Tiffany Setting continues as one of the most popular engagement ring styles and shining symbol of the jeweler’s diamond authority. During New York’s Gilded Age, Tiffany was prospering as never before. At the same time, the world had embarked on the Age of Expositions, the era of show-stopping extravaganzas that took place in the last decades of the 19th century and into the 20th in Paris, Chicago, Buffalo and St. Louis. At every venue, Tiffany won the highest honors and recognition as the undisputed leader in the world of jewels. The company’s exhibit at the 1889 Paris fair was heralded as â€Å"the most extraordinary collection of jewels ever produced by an American jewelry house. † Tiffany produced an equally praiseworthy collection for the 1900 Paris fair, along with magnificent silver pieces based on Native American pottery and basket designs. The unprecedented commendation and number of awards bestowed on the jeweler led to Tiffany’s appointment as Imperial Jeweler and Royal Jeweler to the crowned heads of Europe, as well as the Ottoman Emperor and the Czar and Czarina of Russia. With the death of Charles Lewis Tiffany in 1902, Louis Comfort Tiffany, the founder’s son, became Tiffany’s first Director of Design. An entire floor of Tiffany & Co. was devoted to merchandise crafted in the Tiffany Studios, Louis Comfort Tiffany’s atelier. His position as America’s leading designer was well established by 1882, when President Chester Arthur invited him to redecorate the White House. By 1900 the younger Tiffany was a world leader in the Art Nouveau and Arts and Crafts movements. The famed artist created a remarkable range of designs, from technically brilliant leaded lass to colorful Tiffany favrile glass, and enameled and painterly jewels based on American plants and flowers. Throughout the jeweler’s history, the most prominent members of American society were frequent Tiffany customers. Vanderbilts, Astors, Whitneys and Havemeyers, as well as J. P. Morgan, F. Scott Fitzgerald and Paul Mellon, commissioned Tiffany to produce gold and silver services. Admirers of Lillian Russell ordered a sterling silver bicycle. President Lincoln purchased a seed pearl necklace for his wife, Mary Todd Lincoln. And a young Franklin Roosevelt purchased a Tiffany engagement ring in 1904. As the twentieth century progressed, Tiffany designs captured the spirit of the times, from the extravagance of the 1920s to the modernism of the 1930s and the aerodynamic age of the 1940s and 1950s. Tiffany china set the stage for White House dinners and Tiffany jewels accented the elegant clothes of the world’s most glamorous women, including Jacqueline Kennedy Onassis, Babe Paley and Diana Vreeland. Very often world-renowned jeweler Jean Schlumberger created their jewelry. Hired in 1956 by then Tiffany chairman Walter Hoving, Schlumberger’s lavish, nature-inspired jewels remain the pride of Tiffany & Co. Throughout Tiffany’s history, the United States and foreign governments have called upon the company to create special commissions. Among them are the Congressional Medal of Honor, the United States’ highest military award; and the 1885 redesign of the Great Seal of the United States, which can be seen on official government documents as well as on the one-dollar bill. Business and professional organizations have also called on Tiffany design expertise through Tiffany Business Sales. The most famous of these commissions is the Vince Lombardi Trophy for the National Football League Super Bowl Championship. Tiffany has had the distinction of creating this original and well-known design since the first Super Bowl in 1967. The legendary style of Tiffany design is perhaps best represented by the annual Blue Book Collection, featuring Tiffany’s and the world’s most spectacular and glamorous jewels. Initially published in 1845, the Tiffany Blue Book was the first such catalogue to be distributed in the U. S. Today’s version showcases the elite of diamonds and colored gemstones in custom-designed settings, crafted with time-honored jewelry techniques and inspired by jewels in the Tiffany & Co. Archives. Over the past two centuries, Tiffany has built an international reputation as a premier jeweler and the ultimate source of gifts for life's most cherished occasions. Whether it's a milestone in the life of a company or a family, or an individual's crowning achievement, Tiffany gifts wrapped in the signature Tiffany Blue Box ® symbolize the rich heritage and unparalleled reputation Tiffany & Co. has enjoyed as one of America's great institutions. II. Current marketing situation A. Market overview i. Market demographics and needs Official estimates put the population of Kazakhstan at 15. million as of 1 July 2008, of which 47% is rural and 53% urban population. The 2008 population estimate is 4. 8% higher than the population reported in the last census from January 1999 (slightly less than 15 million). Kazakhstan underwent significant urbanization during the first 50 years of the Soviet era, as the share of rural population declined from more than 90% in the 1920s to less than 50% si nce the 1970s [pic] Next table summarizes information about Kazakhstani market and gives more detailed understanding of current market situation. Year (January)  Ã‚   |Population (‘000)  Ã‚   | |Opportunities |Threats | |Currently isn’t widely presented |Logistics problems | |Integration in lower priced segments |Threat of fakes | | |Luxury niche is under threat of crisis | | |Low brand awareness | | | | Strengths 1. Customer service. Operating by its mission statement to be the world’s most respected retailer, Tiffany focuses heavily on customer service. New employees complete six to eight weeks of training in knowledge, skills, and product training. They must also pass a written test before they are allowed to meet with customers. Once in the field, sales representatives work for two years to complete a rigorous certification process. According to John Peterson, senior vice president of corporate sales, the process helps the company uphold its unique tradi tion and culture. 2. Unique quality. Tiffany also places extreme value on the quality of its products, paying attention to every detail of the Tiffany experience. Charles Lewis Tiffany began this practice with his original selection of the blue color for Tiffany boxes, shopping bags, and catalogs. Tiffany focused on the final, and often neglected, step in brand positioning: giving customers something symbolizing Tiffany quality, commitment, consistency, respect, and reputation long after they have walked out of the store. According to Denise Meyer, creative director of Frenchman Marketing, an advertising agency that specializes in jewelry marketing, â€Å"Tiffany wants you to forget the product and remember where it came from†. 3. Recognition. As one of the world’s most recognizable brand symbols, Tiffany takes all of its blue box’s components, from the quality of the blue paper to the way the ribbon is tied, very seriously. Because the blue box represents the Tiffany experience, the company even sends their employees to a class to perfect the art of tying the white satin ribbon so the box lays flat. According to James Mansur, principal of Mansur Design, a retail branding consultancy in New York, â€Å"[The blue box] represents refinement, luxury, elegance, good taste, quality, and it confers status on both the person who gives it and the person who receives it†. Weaknesses 1. Brand positioning problem Tiffany & co is positioned as luxury brand, for people with high income. However tiffany introduces middle cost items, which is part of company strategy. But people can’t realize that tiffany’s jewellery becomes more affordable and think that starting price for tiffany rings is 3000$, while really it is only 900$. The same positioning problem can occur in Kazakhstan. In order to prevent this company should inform Kazakhstan populating about their prices by means of advertizing, PR and other activities. Opportunities 1. Currently isn’t widely presented All over the Kazakhstan there is only one Tiffany store, located in Almaty. This store is a franchise. Assortment is not great, and silver products care absolutely not presented. Also very poor assortment of yellow gold. . Integration in lower priced segments Tiffany adopts new strategy, in order to attract new customers. Appearance of 100$ and below items in tiffany products lit will attract new customers, for whom brand name is important. So in strong competition with well-known brands like Bvldary, Cartier and Chopard Tiffany offers luxury goods for affordable prices. Threats 1. Logistics problems Tiffany & Co is American company and jewelers should be transported from US. Almaty franchise transports goods from US. However, because of big distance orders may come not in time, or breakage rate may be high. Also during transportation goods may be stolen. 2. Threat of fakes In Kazakhstan patents and copyrights are almost not important, so in case of good promotion and increased brand awareness faces from China could be easily broad to the market and brand reputation will be damaged 3. Luxury niche is under threat of crisis Nowadays financial crisis is on the peak and people suffer from lack of money , so they will rather prefer to save money than to spend them on luxury goods 4. Low brand awareness Besides Tiffany & Co is extremely popular in the west in Kazakhstan brand awareness is very low, and a lot of funds should be spend for advertizing B. Competitive and industry analysis Competitors: Signet Group (SIG) is the world's largest specialty jewelry retailer in terms of sales, with $3. 3 billion of revenue in 2008; the company is based in the United Kingdom and operates 1,959 stores in the U. K. and the U. S. , including Kay Jewelers and Jared The Galleria of Jewelry chains in the United States. Signet Group exceeds Tiffany's in revenu e and size; however the company currently lacks a presence in Asia. Tiffany, on the other hand, is in a good position to take advantage of new wealth developing in Asia due to the fact it already has stores in that region. †¢ Zale (ZLC) specializes in diamond jewelry and operates mostly mall-based stores as well as mall kiosks only in North America. It lacks an international presence, however makes up for it through volume in North America: The company has 2,135 locations throughout the United States, Canada and Puerto Rico. Both Zale and Tiffany sell low-priced jewelry, but Zale only extends to moderately-priced pieces while Tiffany seeks to maintain a â€Å"high-low† approach by selling $200 pieces next to $50,000 ones. †¢ Blue Nile (NILE) is the largest online-only retailer of certified diamonds and fine jewelry. The company's 2008 sales were much smaller than Tiffany's. The fact that the company sells its goods exclusively online makes it available to a wider audience than Tiffany's, whose goods must be purchased through its own stores. Company |Net Sales (mm) | |Increase in store sales |9-10% | |Increase in Direct Marketing Sales |10% | |Expense growth |13% | |Advertising expense |6% | In terms of financial objectives for the full year 2009, Tiffany &Co are now projecting sales growth of approximately 15% which includes comparable store sales increasing 9-10% in the US and in the high single digits internationally on a constant exchange rate basis. For the fourth quarter, that implies a mid single digit comp increase in the US, strong comp growth in the European and Asia/Pacific regions and a modest increase in total Japan sales. Tiffany now half way through the all important November/December holiday selling season, although the vast majority of sales activity is still ahead of company in the next several weeks. C. Target Markets: 1) Women Aged 34- 54 years old 2). Middle-High income, upper class in KZ –$2000 and more 3). Status-oriented- Business women 4). Discerning customers who appreciate the finer things in life and the emotional pleasure of owning the best there is. ). Women, knowing that mostly men will be making the purchases. Rings start at relativ ely affordable level ($1000) and go up to over a million dollars. It is known that about 39% of sales are outside the United States. There are stores in Brazil, Europe, Australia and Asia. Stores are located in larger cities while the catalog and internet cater to non-urban customers. D. Positioning People who pay much attention to the fashion world may know that Tiffany& Co is one of top three jewelry producers in the world. Among those fashionable and exquisite ornaments, tiffany rings are undoubtedly the one that gains more attention than any other ones. When divided by function and occasion, tiffany rings can be divided into three major categories that are tiffany celebration rings, engagement rings and wedding rings. Each kind of them has its own unique and irreplaceable functions. All the tiffany rings are beautifully crafted pieces of remarkable elegance. Tiffany & Co rings are unequaled in quality, with close attention to detail. I. Marketing Mix A. Product. Tiffany and Co. ’s offerings include diamonds, gemstones, necklaces, pendants, rings, bracelets, charms, brooches and earrings. In addition to the classic items, Tiffany and Co. collection reflects unique items like their elegant decorative keys, jeweled boxes, heart-shaped lockets, letters of the alphabet and crosses. Also for men, Tiffany and Co. has a range of rings, watches, necklaces and money clips. Among those fashionable ornaments, tiffany rings are undoubtedly the one that gains more attention than any other ones. When divided by function and occasion, tiffany rings can be divided into three major categories that are tiffany celebration rings, engagement rings and wedding rings. Each kind of them has its own unique and irreplaceable functions. To take celebration rings as an example, there are so many important occasions and moments in one's life to celebrate. To capture and keep down these rare and important moments and occasions is so important for every person. Therefore, Tiffany celebration rings are just specially designed and prepared for you these people to come. [pic] Tiffany engagement rings are perfect for those young lovers who are to be engaged. Also it will make the whole ceremony full of joy and happiness and give off the flavor of luxuriance and magnificence. [pic]Tiffany wedding rings are the necessity for every bride and groom who are dreaming of a grand and luxurious wedding ceremony. Tiffany wedding rings are particularly distinctive, with designs ranging from classic solitaires to elaborate multi-stone arrangements. Each ring is accompanied by detailed certification as proof of its superior quality. It is true that tiffany rings are perfect for every occasion. It is prized for its quality, sophistication, and beauty. The four Cs of diamond quality have the greatest effect on the stone’s price: Carat: The weight of a diamond is measured in carats. The more carats, the heavier the stone, and the more expensive it is. Color . A diamond’s color grade is a key quality evaluation, but often misleading. This is because the ideal engagement diamond is characterized by a lack of color. Diamonds can be laboratory treated to reduce their color. At the Tiffany Gemological Laboratory, the color of each diamond is determined by comparing it to authenticated â€Å"master diamonds. Clarity: A diamond’s clarity rating has a direct effect on a diamond’s beauty and price. The clearer a diamond is, the more expensive it will be. Cut: The cut and shape of the diamond affects its price depending on the difficulty involved. Emerald and princess cuts are among the least expensive because they follow the crystalline shape of the stone, while heart-shaped, pear, and oval cuts are more expensive. Tiffany diamonds are always cut for beauty, not size. Other Factors in Engagement Ring Cost: Metal: Yellow gold is the most common choice for engagement rings, and it is in the mid-range for prices. Silver is less expensive, while high-grade karats of yellow and white gold are pricier. Platinum, titanium and tungsten are generally more expensive. Design: Simple solitaires are often the least expensive design because they lack elaborate side stones or other embellishments. More intricate rings, such as Celtic patterns, bridal sets, or three stone rings are more costly. B. Pricing. Today, tiffany settings are one of the most popular choices for ring settings. Company offers different ring designs, including channel set bands and minimal setting diamond bands that emphasize the stones.. Three stone engagement rings are increasingly popular, and Tiffany engagement rings often use fancy shapes such as ovals, hearts, pears, and tapered baguettes for exquisite arrangements. Rings | Price ranges | |Sterling silver rings | $100 -$1000 | |Gold rings |$250 – over $ 5000 | |Platinum rings |$250 – over $ 5000 | |One carat diamond ring |$95,00-$35,000 | |White gold rings |$500 –over $5000 | Every ring is unique, each with its own precise gemological cha racteristics, pricing will vary. All rings meet Tiffany’s strict quality requirements and Tiffany engagement ring prices are offered: C. [Promotion. Tiffany & Co periodically conducts product promotional events and regularly advertises, primarily in newspapers and magazines.. In Fiscal 2007, 2006 and 2005, company spent approximately $174 million, $162  million and $137  million, respectively, on worldwide advertising, which includes costs for media, production, catalogs, promotional events and other related items. Public Relations (promotional)  activity is a significant aspect of Registrant’s business. Management believes that Tiffany’s image is enhanced by a program of charity sponsorships, grants and merchandise donations. For example, Tiffany & Co. serves as the Awards Sponsor of the inaugural Pasadena Marathon organization presented by Kaiser Permanente. The organization's mission is to promote an enhanced quality of life for those who work, live, or attend school in the Pasadena area. Thus, company offers financial and logistical support to local civic and charitable agencies. In addition ,in support of its mission to preserve the natural heritage that distinguishes great urban centers, The Tiffany & Co. Foundation announced grants on September 25, 2008 to three organizations—Hermann Park Conservancy in Houston, Parkways Foundation in Chicago, and The Vizcayans in Miami—for the restoration of parks and gardens in their individual cities, totaling $2,750,000. These grants expand the Foundation’s urban parks program that originated with support for New York City’s parks Donations are also made to The Tiffany & Co. Foundation, a private foundation organized to support the charitable organizations with efforts concentrated in environmental conservation and support for the decorative arts. Tiffany also engages in a program of retail promotions and media activities to maintain consumer awareness of the Company and its products. Each year, Tiffany publishes its well-known Blue Book which showcases jewelry and other merchandise. Registrant considers these and other promotional efforts important in maintaining Tiffany’s image. D. Channel of distribution. The Company operates in three segments: Americas, Asia-Pacific and Europe. Americas includes sales in TIFFANY & CO. stores in the United States, Canada and Latin/South America. Tiffany distributes a selection of its products in the United States and Canada through its Websites at www. tiffany. com and www. tiffany. ca. Tiffany also distributes catalogs of selected merchandise to its list of customers in the United States and to mailing lists rented from third parties. In addition, Business account holders may make gift purchases through the Company’s website at http://business. tiffany. com . Price allowances are given to eligible business account holders for certain purchases on the Tiffany for Business website. Moreover, products and services are marketed through a sales organization, through advertising in newspapers and business periodicals and through the publication of special catalogs. The retail sales in Asia-Pacific region consists of sales transacted in TIFFANY & CO. locations in Japan, China, Korea, Hong Kong, Taiwan, Australia, Singapore, Macau and Malaysia. The Company does business in Japan through its wholly-owned subsidiary, Tiffany & Co. Japan, Inc. The Company offers a selection of TIFFANY & CO. erchandise for purchase in Japan and Australia through its Websites at www. tiffany. co. jp and www. tiffany. com/au. Selected TIFFANY & CO. merchandise is sold to independent distributors for resale in Asia-Pacific markets, predom inantly in the Middle Eastern region. As for Europe , retail sales consists of sales transacted in TIFFANY & CO. stores in the United Kingdom, Germany, Italy, France, Austria, Switzerland, Belgium, Spain and Ireland. The Company offers a selection of TIFFANY & CO. merchandise for purchase in England, Wales, Northern Ireland and Scotland through its Website at www. tiffany. com/uk International Retail The following tables set locations operated by Tiffany & Co | | | |  | |Europe |  |  |   |  | |   | |Austria: Vienna |  | |Italy: Milan |  |  | |France: Paris, Galeries Lafayette |  |  |Italy: Rome |  | | |France: Paris, Printemps Department Store |  |  |Switzerland: Zurich |  | | |France: Paris, Rue de la Paix |  |  |United Kingdom: London, Harrods |  | | |Germany: Frankfurt   |  |United Kingdom: London, Old Bond Street |  | | |Germany: Hamburg |  |  |United Kingdom: London, Royal Exchange |  | | |Germany: Munich |  |  |United Kingd om: London, Selfridges |  | | |Italy: Bologna |  |  |United Kingdom: London, Sloane Street |  | | |Italy: Florence |  |  | | | | |   | | | | | |  | |Canada and Central/South America |  |  |   |  | |   | |Canada: Toronto |  |  |Mexico: Mexico City, Palacio Store, Perisur |  | |Canada: Vancouver |  |  |Mexico: Mexico City, Palacio Store, Polanco |  | |Brazil: Sao Paulo, Jardins |  |  |Mexico: Monterrey, Palacio Store |  | |Brazil: Sao Paulo, Iguatemi Shopping Center |  |  |Mexico: Puebla, Palacio Store |  | |Mexico: Mexico City, Masaryk |  |  |Mexico: Santa Fe | | Asia-Pacific Excluding Japan |   |  |  | |Australia: Brisbane |  |  | |Australia: Melbourne |  |  | |Australia: Sydney |  |  | |China: Beijing, The Peninsula Palace Hotel |  |  | |China: Beijing, Oriental Plaza   |  | |China: Shanghai, Jiu Guang City Plaza |  |  | |China: Shanghai, Plaza 66 |  |  | |China: Tianjin |  |  | |Hon g Kong: Elements |  |  | |Hong Kong: Hong Kong International Airport |  |  | |Hong Kong: International Finance Center |  |  | |Hong Kong: The Landmark Center |  |  | |Hong Kong: Pacific Place |  |  | |Hong Kong: The Peninsula Hotel |  |  | |Hong Kong: Sogo Department Store |  |  | |Korea: Busan, Lotte Department Store |  |  | |Korea: Seoul, Galleria Luxury Hall East Dept. Store |  |  | |   |  |  | |Korea: Seoul, Hyundai Department Store |  |  | |Korea: Seoul, Hyundai Coex Department Store |  |  | |Korea: Seoul, Lotte Downtown Department Store |  |  | |Korea: Seoul, Lotte World |  |  | |Korea: Seoul, Shinsegae Main |  |  | |Macau: The Venetian Resort |  |  | |Macau: Wynn Resort |  |  | |Malaysia: Kuala Lumpur, KLCC |  |  | |Malaysia: Kuala Lumpur, Pavillion |  |  | |Singapore: Changi Airport |  |  | |Singapore: Ngee Ann City |  |  | |Singapore: Raffles Hotel |  |  | |Taiwan: Kaohsiung, Hanshin Department Store |  |  | |Taiwan: Taichung, Sogo Department Store |  |  | |Taiwan: Taipei, The Regent Hotel |  |  | |Taiwan: Taipei, Sogo Department Store |  |  | |Taiwan: Taipei, Taipei Financial Center | | | E. Service [pic] Customer service is a company's most effective tool, therefore, they strive to keep customers happy. Tiffany representatives are available for telephone and email support twenty-four hours a day. There are numerous informative FAQs and articles on their website. Email customer service. Any customer who has question or assistance can complete the special form. They can find this form in the web site of company. Jewelry care. Professional cleanings are recommended as often as once a year. For this reason company encourage customers to bring their Tiffany & Co. jewelry back to us for professional servicing. Company staff is knowledgeable and experienced in all aspects of jewelry care: cleaning gemstones, restringing pearls and repairing clasps and earring backs. Due to the fact that our items are bought over the Internet, cannot be tried on ahead of time and are bought site unseen, company have developed the following return and exchange policy for customer service purposes. For Returns: All returns must be postmarked within 7 days of delivery and must be in resalable conditions. Buyer is responsible for the shipping charges to return. The $9. 99 shipping fee and a 15% restocking fee will be deducted from the refund amount For Exchanges: Exchanges are only allowed for the items which are defective or damaged upon receipt or the items do not fit and are not subject to a restocking fee. Items must be returned within 15 days of delivery and the customer is responsible for shipping charges to return. All items can only exchange for equal price replacement Tiffany also arranges to have items resized. All purchases through Tiffany& Co. s website include a 30 day, full refund, satisfaction guarantee. II. Marketing Research Going into Kazakhstany market is a market development for company Tiffany, so managers of Tiffany need information in order to introduce products and services that create value in the mind of the customer. But the perception of value is a subjective one, and what customers value this year may be quite different from what they value next year. As such, the attributes that create value cannot simply be deducted from common knowledge. Rather, data must be collected and analyzed. The goal of marketing research is to provide the facts and direction that managers need to make their more important marketing decisions. In order to screen the market, our group made a standard test research, we created the questionnaire, that helps to identify if the population of Kazakhstan is ready to buy Tiffany products, sum of money, that people want to pay and finally the product mix, that will be appropriate in this country. The questionnaire has the following form: ? ! 1. . ( ) 2. ?) 18-24 b) 25-32 ?) 33-39 d) 40-46 e) 46 3. : ?) $1000 b) $1000 $2,500 ?) $2,500 ? 4. ? Tiffany? . , 5. ? 6. ?) $100-$250 b) $250-$500 ?) $1,000-$5,000 d) ? 7. - . , , 8. Tiffany? , , 9. a) ? b) ? c) ? d) ? 10. Tiffany? ?) b) c) ? 11. Tiffany? a) , b) , c) d) , ? , ! Our group made a research, 50 random respondents have answered questionnaire, and after the survey we received following results: 27% of respondents doesn’t know anything about Tiffany 48% are ready to buy Tiffany products, bu t have never done it before 18% know about Tiffany and already have use its production % are not interested in Tiffany products III. Financials A. Sales/revenue forecast(s): By territory: |   |  |Years Ended January  31, |  | |(in thousands) |  | |   | | |Net sales: |  |   | |   |  |   | |   |  |$ | By Products:    |  |   |  | |(in thousands) |  | |   | | |Net sales: |  |   | |   |  |   | |   |  |$ |  | | | | |2| | | | |,| | | | |8| | | | |5| | | | 9| | | | |,| | | | |9| | | | |9| | | | |7| |(in thousands) |  | |   | | |Expenses: |   |   |  |  |  | |   |   | | |(in thousands, except per share amounts) | |   | | |Net sales |   |$ | |   |   |   | |   |   |   | |   |   |   | |   |   |   | |   |   |   |   |   |   |   |   |   |   |   |   |   |   | |Net Income |   |$ |220,022 |   |   |$ |323,478 |   |   |$ |272,897 |   |   |   | | References: 1. Kotler P. (2003) Marketing Management. 11th edition. New Jersey, Pearson education Inc. 2. www. Gazeta. kz, (02. 01. 09),  «  ». [Online]. Available from: http://www. gazeta. kz/art. asp? aid=124611 [Accessed June 21  209] 3. , (03. 02. 09),  «  ». [Online] Available from: http://www. rosbalt. u/2009/02/03/614987. html [Accessed June 21 2009] 4. Tiffany , â€Å"Shareholder information† [Online] Available from: http://investor. tiffany. com/faq. cfm? SH_No_JavaScript=yes [Accessed June 21 2009] 5. www. Murman. ru,(05. 02. 09)  «  » [Online] Available from: http://business. murman. ru/research/33/473/? id=108 [Accessed June 21 2009] 6. Export. by,  «  », [Online] Available from: http://export. by/? act=s_docs=view=1615=by_country=58=archive=64 [Accessed June 21 2009] 7. http://www. tiffanyandcofoundation. org/news/article/08%20Urban%20Parks%20Program. spx – Tiffany & CO foundation 8. http://sec. edgar-online. com/tiffany œco/10-k-annual-report/2006/03/31/Section3. aspx -Annual report of Tiffany & Co 9. http://www. tiffany. com/ – the main website 10. http://online-jewelry-review. toptenreviews. com/tiffany-amp-co-review. html – Online Jewelry Review ———————– [pic] [pic] [pic] [pic] World Wide Scale Increase the number of loyal users Attract new customers Different loyalty programs Make the products more affordable The price range starts from $100 Discounts, Coupons Tiffany’s lamp Charles Lewis Tiffany First Tiffany Store Tiffany Store in Tokio Wedding Rings Bvlgari rings Cartier rings