Business

Disrupting the business of…breakups?

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Via: Forbes

Some of the fastest growing tech companies these days, the ones that have become darlings of Wall Street, are known as ‘disruptors’. What exactly does that mean, though?

It’s pretty straightforward, actually. When a company is commonly referred to as a disruptor, they are, quite literally, disrupting the industry in which they reside. For instance, Air BnB is a disruptor within the hospitality industry, flipping the traditional hotel business model on its head (although there is now speculation that that company will affect online travel booking sites like Travelocity more than it will hotels). Another disruptor example, and perhaps the best known? Uber. While that company has been criticized recently by some well-known investors as little more than an overvalued app, it is inarguable that Uber has had a huge effect on, has ‘disrupted’, if you will, the taxi cab industry. The sheer amount of resistance those companies receive from lobbyists and governments at both the local and more national levels is evidence enough of their disruptor status.

However, a new company, the aptly named ‘The Breakup Shop’, is looking to disrupt an entirely new, previously untapped industry; the break up.

A new ad from The Break Up Shop (Via Newser)

While the idea might seem silly, or even somewhat mean-spirited at first glance, there might be some substance there, some are now saying. Certainly, break ups are a wide reaching problem. And further more, there must be a portion of the population who finds the whole situation so uncomfortable, so unpleasant; that they might forsake good manners, societal norms, and invoke the chagrin of their friends and family to employ this company that will end their whole relationship situation for them.

In fact, the site’s potential appeal goes even further than that. In a recent round of marketing, they raised the question of what’s worse than being dumped via a brief call, or even worse, a text? Well, The Break Up shop offers multiple levels of courtesy when they do the breaking up for you. A slight price increase over their base break up model includes a nice card, and even pricier versions include coping mechanisms like a copy of the Notebook or Call of Duty.

And while we’re not the first site to reach this conclusion, it is a logical one; The Breakup Shop is hardly the first enterprise seeking to profit off of heartbreak. And you need look no further than Taylor Swift’s career for an example of that. Perhaps the business of heartbreak is an industry ready for some disruption, after all.

Tesla debuts new SUV model: Delorean doors included

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Via: The Verge

Well, it has finally arrived. Originally slated to start production all the way back in 2013, Tesla just yesterday unveiled their long awaited Model X crossover SUV model; and it is every bit as cool as the public, and Wall Street analysts alike had hoped it to be.

Tesla’s new Model X. (Via Wired.com)

The model itself is a sleek, svelte crossover; similar in its aerodynamic look to the flagship Tesla Model S. However, there are a number of notable differences. It has three rows of seating, which while seeming like a somewhat analogue selling point on this futuristic crossover, is very important for drivers with families. Also, the model uses a version of the dual-motor design that is included on the Model S, making it one of the fastest crossover models in production today, with a 0-60 time of only 3.2 seconds; the same as a Porsche 911 Turbo. In terms of range, it will boast about 250 miles per charge, slightly less than the Model S, but still very manageable from a logistical standpoint.

And did we mention the doors? This is not only the first three-row, all-electric family carrier, but its also the only one boasting Delorean doors. This means the doors open upright, instead of the usual push-out design. Pretty cool touch, if we do say so ourselves. Alas, its not all fun and games with the new Model X however, as the upcoming, initial edition of the crossover will be priced at $130,000.

Ralph Lauren to step down as CEO of his namesake brand

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Via: Business Insider

Truly an American rags-to-riches story that is simply as good as it gets, legendary fashion designer and businessman Ralph Lauren has announced that he will be stepping down as CEO of the iconic brand, capping a more than four-decades-long run as the head of the label. The 75 year old will stay on as the Chief Creative Officer and Executive Chairmen.

The man himself. (Via Businessoffashion.com)

As with many classic American Dream stories, Mr. Lauren’s starts with incredibly humble beginnings. Born Ralph Lipschitz to immigrant parents living in the Bronx, he spent his childhood escaping the harsher realities of his life with movies. He would project himself onto iconic film stars like Carey Grant and Gary Cooper, and that air of elegant escapism is a noted influence on what he would eventually bring to the fashion world.

After serving in the military, the designer moved back to his native New York City, taking his first job in the fashion world as a clerk at Brooks Brothers. It was only a few short years later however, that a chance journey out to a polo match would change the course of his life, and American fashion forever. Warren Helstein, the friend who brought him to the polo match recounts; “We were exposed to fabulous things. The leather, the silver, the horses, the tall, slinky blondes with the big hats, and the high society that we weren’t really knowledgeable of.”

Of course, that would all change soon. Mr. Lauren started his classy, elegant brand soon after that; the brand that would eventually transform into Ralph Lauren. He started with ties; broad, bold ties at a time when simple, slim ones were the norm. They were an immediate hit, earning the fledgling company entry into department stores, and $500,000 in revenue that first year. Of course, he did not stop there.

Lauren’s design ideas flourished from there, producing iconically classic pieces that people would want to wear; clothing fit for a movie star. And the rest, as they say, is history.

Instagram surpasses 400 million active users, surging past Twitter

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Via: Business Insider

Long positioned as one of two social media platforms vying for the number one spot after, of course, the tech juggernaut that is Facebook; it may be time to give that #2 title completely to Instagram.

In a recent blog post on their website, the company formally announced that they had surpassed the 400 million active user mark, only a few months after they announced that they had hit the 300 million mark last December. This type of growth is not only the exact type that Twitter interim CEO Jack Dorsey, and CFO Anthony Noto were very open about not having on their site at the time of their last earnings call, but also places the usership itself of Instagram ahead of Twitter, which has been hovering around 300 million active users for the past year or so.

(Via heidicohen.com)

Beyond creating an interesting contrast to the growth of Twitter, this news is interesting for a number of other reasons. It is surely good news for Facebook, who actually purchased Instagram for $1 billion back in 2012, and has been looking to monetize the app in a number of ways in recent months. These include sponsored ads, and soon a targeted ad program will be rolled out. Advertising revenue generated by Instagram this year will be around $600 million, and is projected to as much as double in 2016 as well. Also, the app has gone truly global, as Instagram reports that most of the most recent 100 million adopters of the app live in Europe, Asia, or South America.

Instagram is the only other Facebook-owned property that generates advertising revenue at this time, and is rated very positively by clients thus far.

Porsche unveils Tesla-rivaling all-electric E Concept car at Frankfurt Auto Show

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Via: Architectural Digest

Exciting news to report here today out of the Frankfurt Auto Show, as it appears that Tesla will soon have another competitor in their now somewhat-lonely luxury electric car market.

Indeed, making the debut at the biggest auto show in their home country of Germany, legendary automaker Porsche has announced an all-electric new concept model, the very first in the automaker’s illustrious 84 year history.

The new all-electric concept model from Porsche. (via Tampabay.com)

Indeed, Tesla has exploded in popularity in recent years, with some Wall Street analysts as much as doubling their forecasts for the automaker over the next 3-5 years. However, there is a lot to be impressed with on this new Porsche concept as well. The model, pictured above, featured a beautifully modern, windswept design; evocative of their classic Porsche 911 design, but also distinctly more modern. In terms of the technical specs, there is a lot to impressed with as well. The model will be able to travel up to 310 miles between charges, and its two motors equally distribute no less than 600 horsepower to the four wheels. This massive amount of power will give the new car a 0-60 time of only 3.5 seconds as well, besting most of even the most powerful traditional muscle cars.

But what about in terms of competing with Tesla? In terms of a side-by-side comparison, the Porsche is a bit more powerful, but the Tesla has a substantially longer range, with drivers reporting over 450 miles traveled between charges before. Time will certainly tell which luxury-electric model strikes the long term chord with consumers, but for now, Tesla still maintains a pretty lengthy lead on establishing itself as the leader in that market.

How low can it go? Goldman Sachs says $20 barrels may be possible

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Via: Source

There has been a LOT of movement in financial markets this summer. China, Greece, and geo-political instability across the world have all combined to send indexes swinging up and down intensely. And now, coming on the heels of a new report out of Goldman Sachs, another indicator of fundamental shifts in the market; this time in the commodities market, has come to the surface.

Earlier this week, Goldman Sachs has issued a statement basically saying that the global surplus of oil is even larger than they had previously predicted, and that the surplus could last into 2017, sending prices for crude oil as low as $20 dollars per barrel.

On first glance, this would appear to be a very good. This would send the price of a gallon of gas at the pump below $2 for the first time in years, and some analysts have speculated, sustained prices that incredibly low may actually spur an increase in American manufacturing; a sector of the economy which has famously (infamously?) been in decline for decades now.

However, when given a longer, more thoughtful glance, prices that low create a diminishing returns scenario. Prices this low would signal systemic weakness in the commodities market. One of the reasons we are seeing this weakness is because prices this low could create a systemic shift in the commodities field, permanently putting American shale oil businesses under. 1 and 2 year views on oil are all lower, with virtually no analysts predicting a return above around $60 per barrel. If oil stays at 30-40 dollars per barrel, economists like Erwat Prasad predict that could be the ideal set of supply and demand circumstances, keeping US production viable, but prices also low. The real problems of diminishing returns may begin if the value dips lower than that for a sustained period of time. This price level would put massive pressure on a number of governments all around the world which depend on their oil exports, like Saudi Arabia or Argentina. This would spur on central bank action, the ramifications of which are not yet known.

The commodities market is certainly one to keep an eye on in coming months.

Super exclusive Yeezy Boost drops on Saturday

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The third in an on-going edition of super limited edition footwear designed by none other than the man himself, Kanye West, the brand new Yeezy Boost finally drops on Saturday.

The first two shoes sold out day-of, and its anticipated this one will go even faster. Despite criticism that the shoes ‘look like Uggs’ from some members of the sneakerhead community, the shoes are still selling for far beyond their $200 retail price on the after market.

Seriously on-trend, and boasting unique materials and construction techniques, the Yeezy series may not be for everyone, but it has absolutely captured the collective imagine of the street-fashion forward set. Also, it’s not only sneakerheads that are hoping for some luck on Saturday, as Adidas itself has placed a ton of emphasis on this relationship with Kanye, and the Yeezy series he designed, to recapture some of the market share that Nike has been dominating for close to a decade now. More recently, even newer brands like Under Armour have emerged as competitors to the legendary 3 Stripes brand as well, so creative partnerships and promotions such as this one have become a go-to marketing strategy for Adidas. So for the new Yeezy Boost, a huge emphasis was placed on athletic capability, in addition to its uniquely streetwear-focused style. Check out the video below for more details.

Because the Yeezy shoes themselves are so limited, Adidas hopes that not only will they generate serious demand in the aftermarket, and thus, serious buzz for the brand in entirety; but they also hope that this will lead people to buy other Adidas footwear as well. And if this article that surfaced on SneakerNews today is any indication, that plan may already be working.

Jeff Bezos responds to NYT article on Amazon work culture

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For those who missed it in the Sunday Times, the New York newspaper posted a pretty scathing article on the front page of the Business Section, which profiled the intense work culture at internet-giant Amazon. Today, CEO of that company, Jeff Bezos, (among many others) has responded.

In rather candid remarks, the generally well-liked and respected CEO said that he would personally quit any company that operated in the way described in the article, and that ‘anyone working in a company that is really like the one described in the NYT article would be crazy to stay’.

Jeff Bezos. (Via: Business Insider)

Indeed, there were some pretty colorful quotes included in the article, stories that did push the boundaries of believability, but certainly did seem harsh. One ex-‘Amazonian’ said a lasting image in his mind was a grown man crying at his desk after giving a doomed presentation, and one HR rep supposed that when Amazon employees ‘hit the wall’, their only choice is to climb over it. Other, slightly more normal-seeming examples of the intense work environment at the company included late-night emails and texts, and an internal system where employees can report each other anonymously via email to HR for any number of transgressions.

However, after a number of passionate articles were published today from Amazon employees on all spectrums of the hierarchy defending the company and its culture, it’s very clear that not everyone dislikes working at Amazon, and some people seem to truly be thriving.

Price targets for Tesla raised hugely; analysts saying stock could double

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Via: Source

While there are some pretty vocal skeptics of the company, it is ultimately tough to argue against the seemingly very bright future of Tesla, the luxury-electric automaker.

Every year, emissions regulations are tightened even further by governments around the world, squeezing automakers to create more and more efficient models. And while gas prices have remained low and stagnant through most of 2015, gasoline is ultimately a limited resource, with a price that is always subject to change, for higher, or lower. However, the public’s appetite for beautiful looking, and highly performing vehicles is unlikely to wane as quickly. Thus, the writing is pretty blatantly on the wall that the fully electric automaker is poised to be leader in a potentially massive market.

A number of new reports out of Wall Street this week echo that sentiment, as well. To say Morgan Stanley analyst Adam Jonas is bullish on Tesla would be an understatement. In a new note from Monday morning, Jonas writes that he has increased his price hike on the company’s stock from $280 to $465, citing a number of reasons, the key one of which being an as yet untapped aspect of the business called Tesla Mobility, which is deemed an ‘on-demand, app-based mobility service’, similar perhaps to Uber which itself is valued at over $1 billion.

Also, the automaker is well-positioned to be a leader in not only the electric car industry, but also the self-driving industry as well, an area which many tech giants, and automakers are now exploring. What do you think? Is the sky the limit for Tesla? Or will their growth be limited somehow?

*Insert search ranking joke here*; Google announces massive reorganization, new CEO

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Google dropped a massive bomb on the tech and business communities late Monday night, as they announced that they will be reorganizing their entire operation, bringing all of their subsidiary companies and side projects under one label, now known as Alphabet.

There are a number of rumors circulating around the web as to the timing of this move, namely that Twitter was preparing a CEO offer for newly-minted Google Chief Exec. Sundar Pichai. But no matter the motivations, or how long the move had been in the works at Google, it is a truly massive one.

Also, while the move is a surprising one, it is a logical one as well. Google, through acquisitions mainly, now owns or helps operate no less than seven separate ventures, not even including their core search, images, maps, etc. business. As previously noted, the company will retain Mr. Pichai as CEO of the core Google business, of which he was already second in command, and in charge of massive sections of the business like Android/mobile.

In terms of leadership of the new umbrella company, Alphabet, Google founders Sergey Brin and Larry Page will run as co-heads. This new organization will over not only the core Google business, but also Calico (health), Google Ventures, Google Capital, Nest (internet-connected home goods), Google X, and their Fiber business as well. In a blog post, it was noted that the purpose of this move was to make their separate businesses easier to organize and run independently. How this all evolves, will certainly be interesting to see.