Author Archives: floriangaertner089

Foxconn’s Liason with Sharp

A new alliance against the industry’s number one Samsung forms in East Asia. The Hon-Hai group from Taiwan, better known under the name ‘Foxconn’, as the producer under contract of Apple’s iPhone and iPad, bought 10% of the Japanese electronic enterprise Sharp. The stock exchange reacted with a jump on the announcement of the new Sharp president Takashi Okuda, who is supposed to officially take over the lead of the company in the beginning of April. The stock price of Sharp rose 15%. Okuda announced that Sharp’s strategy will change. They had been trying to get along solo but the pressure from competition was too high. Read the rest of this entry

Bargain-buy portal Groupon: Dictation of the Cheap

Photo by Groupon

Groupon is a provider of local discount campaigns; its name is wordplay between “group-buying” and “coupon”. In November 2011 Groupon went public, three years after its foundation.  Among the listed online service companies, only Google has a higher market value. The company has existed for twelve years and boasts, 24.000 employees and huge profits. Never before has a North-American company grown as fast as Groupon! Several industry experts think that the bubble will burst soon, however. The American analyst Rakesh Agrawal warns that Groupon will not be able to survive without rapidly gaining of new clients; and that is only possible with extensive marketing expenses of almost a billion US-Dollars per year. According to the documents provided on the stock exchange supervision, Groupon almost had to declare insolvency in the last few months. In September Groupon had 240 million in cash, but double this amount in debt. Agrawal’s accusations against the management appear to be well substantiated. Groupon’s IPO almost failed due to dubious balancing methods, billing errors and disregard of confidential information. The US-stock exchange supervision already dismissed their applications twice. The last application was eventually approved, so Groupon went public. Read the rest of this entry