Wednesday, 20 January 2016

Google Might Just Give A Tough Time To Facebook

facebook app install

Google app installation via its search engine might give a tough time to Facebook

Mobile application installation has become the recent bone of contention between tech giant Facebook Inc. and Alphabet Inc.

The search engine giant has started to allow some of its Android users to download the application directly via the search results which will minimize the need to browse through the Google Play Store. So far the ability has not really penetrated amongst users but it can cause substantial dent to the fastest evolving business across the globe of Facebook Inc.

Couple of years back, Facebook has come up with mobile app installation ads which make it extremely convenient for users to download and discover the applications. The app install ads feature appears directly in the Facebook users’ News Feed. A link is provided that enables the users to install a mobile application quickly. Such ads have become immensely popular amongst developers who are always looking up for ways to push downloads and make their product standout.

But now if GOOG makes it easier for downloading the apps via its search engine then there are fewer chances that people pay for Facebook advertisements. This can result in a problem for Facebook since it is enjoying robust growth through its mobile advertisement business. Analysts now believe that the app installs ads are an integral component of Facebook. Ironically, Facebook has condemned this fact claiming that a great chunk of their revenue doesn’t depend on this segment.

App search itself is a big business. Thus, Google has made a smart move to come up with several ways that will assist in making search of applications friendlier.

According to Business Insider, “The Company has started allowing users to stream app content from search without downloading an app. It also launched "trial run ads" that let users test out an app for 60 seconds before deciding if they want to download it.”  At this point of time, Google download without Play tests is merely operating via organic search than advertisements. However, the company is likely to expand in the future.

The main argument by the social media giant regarding its mobile app install is that it can target the masses on the basis of the Facebook information available on the platform. However, with Google there is another added advantage which allows the company to deduce what applications are actually being searched. This will result in better insight for the company.

Facebook needs to do something about this before it gets late. There is still some hope before game changes for them.

Thursday, 14 January 2016

BP Has Announced 4,000 Job Cuts To Cover Damages From Low Product Prices

Job Cuts Cost Cuts

After looking at all of its options, BP plans on removing 4,000 employees in order to cover to costs and loss it is facing from the low prices of oil and gas

The giant oil and gas company has been facing damages due to the downfall of the oil industry, BP Plc. was reported to sell many of its refineries to cover the damages it has gone through, but apparently that was not enough. The London based oil business has plans of removing 4,000 of its workers internationally to save costs.

The job cuts by BP Plc. will be as huge as 4000, out of which 600 are going to be from the company’s North Sea operation. A spokesman for the business informed that such measure are being taken to make the business model and strategy simple and save costs and expenditures within the premises of safety.

The Oil and Gas Company has already warned the media and its employees that many job cuts can be expected in 2016. The oil and natural gas prices have gone down by 70% since 2014, this has damaged many companies in the industry not just BP Plc.  Even though job cuts will take place, the business has assured that in there will not be removal of job in the departments of exploration and drilling.

The London oil business currently provides 80,000 jobs globally, out of which 4,000 of these are in United Kingdom. There are plans of reducing 600 jobs in the North Sea project; regardless the business is still investing $4 billion this year in the project. It is already very well aware that the project will not be an easy one especially because of the difficult market conditions, the company will have to stay extra conscious in how it operates and run the project; every decision will play a huge impact on the business.

Such bad market conditions have led to the company making the unfortunate decision of the removal of job, contractors job cuts will be conducted by the end of next year, however the most of the of job cuts will be taking place this year. This how many organization will have to react due to downfall of the industry globally, the number of job cuts made by businesses has gone up to 250,000 and is increasing every day now.  The CEO of BP said that he wanted pay dividends without taking any loans, this idea is similar to another company, Total SA.

BP stock closed at $28.65, after going red by 0.06% on January 12.

Tuesday, 5 January 2016

Will Netflix Be Apple's Next Catch

Apple and Netflix

As attractive as it might sound, fate is blurry for Apple to acquire Netflix

Apple Inc. has come up with the Apple TV which was considered to be the future of conventional television. The technology had the ability to revolutionize the industry. Recently, the company also planned to come up with a cable streaming package that encompassed 14 channels which would be priced lesser than other conventional services. However, the company did not succeed in maintaining healthy relationships with the streaming services because of which the company decided to abandon the service in December. Now the thing to ponder on is that the company has a cash reserve of $200 billion, so with this money should they opt for high priced proposal or acquire the streaming giant, Netflix Inc.?

For the very first time over the past couple of years, the tech behemoth considers itself in a crucial situation. In the start of 2015, Apple stock were quite lucrative but with time they dropped down to the level they were a year earlier. The market for tablets and smartphones is extremely saturated which does not have the potential to churn in revenues considering previous growth.  Other than that, the company wanted to push its wearable tech, Apple Watch but it wasn’t quite successful and the streaming service for Apple TV got abandoned.

During an interview for Bloomberg, Mr. Daniel Ives, the managing director at FBR Capital Markets claimed that the tech giant has not really made any high profile acquisition to date. The company has embraced a “make or break” situation in FY16 and it should not rely on iPhone 7 to be a game changer and churn in massive sales unless it comes up with an extremely futuristic smartphone.

The company at this point is interested in original content programming; this is exactly what Netflix is popular for through the renowned House of Cards series. So to minimize the hefty expense of coming up with its own original content programming, the tech giant can simply acquire Netflix and make use of the company’s expertise in this domain.

Netflix now seems to be an extremely lucrative company in terms of an acquisition. However, the issue is that the company’s paid content principle is actually against the iPhone maker’s policy to beam out an affordable cable streaming service for $40 to customers.

Moreover, Netflix might really not be interested in this acquisition since it is doing quite well and there is room for further growth in the times to come due to its immense popularity in the world of original content.