Palimar Rao's Blog

So, you have all loved and craved for the Apple iPad. And why not? This new extremely light, fast responding tablet computer is the path breaker in its product category.

The success of  iPad is due to the popularity that Apple enjoys for its innovation and “cool” factor. Because they are the pioneers in this product category, they have  a solid benefit positioning in the minds of the consumers.

However, soon competitors like Playbook from RIM came. But, entering a market where there is a powerful brand occupying the No1 position and hogging the entire target market for a long time, makes it difficult for the other brands to achieve a firm position in the consumers’ mind.

The successive brands bank on product differentiation and try fulfill  the shortcomings of its predecessor. In short, the brands try to strengthen their points of parity, bettering them even, and start including and highlighting the various points of difference. Playbook for instance cleverly marketed the fact that it had cameras which the iPad lacked.

We the consumers tend to benefit in the face of tough competition like this: products are bettered to capture our attention and we walk out with the best deal 😉

Upto 6000 ads per day!! I found it hard to believe the blitzkrieg of marketing gimmics that we the common people are exposed to each day. Our TV viewing times are recorded, our lifestyles are monitored and day in and day out, people plot to try get us to buy their product. While this is legally right, questions rise in my mind relating to what extent can the marketeers go to make us buy their product. Junk food like pop and fast food are advertised cleverly at dinner time, when working people tired from the day’s work may be tempted to go buy their product. True, there is an old latin saying “Caveat Emptor” which is translated as “let the buyer beware”. But, I do wonder if we stand a chance to defend our values and take care of ourselves in this day and age of blitzkrieg marketing.In my opinion, the government has a responsibility towards its citizens to protect them from over exposure of marketing gimmics.  Because, we are unable to protect ourselves from extremely subtle advertisements like the label on the water bottle of the person sitting next to us.

The question however remains,  where should the line be drawn when all companies are trying to position their product and gain the most market share. But till this question is answered, once again, Caveat Emptor!!

Business ethics which are a formidable part of corporate responsibility are needed for more than just company’s promotion….they are essential for the company’s survival.

On January 7 2009, Satyam Computer Systems, once a formidable name in the IT scene in India, had finally fallen, after years of the company’s chairman Ramalinga Raju and Managing Director, Rama Raju “cooking the books”.

The company’s balance sheet was full of ridiculous figures and non-existent cash. For example, the company’s balance sheet of 30 September 2008 mentioned an accrued interest of USD 81.59 million which was non-existent.

The news of this scam broke out when investors forced the company to call off a $1.6-billion acquisition of two construction firms, both partly owned by Raju and his family. Auditors found that in the July-September quarter, operating profit had been overstated by 11 times the actual result.

Satyam’s reputation was tarnished and its shares plummeted nearly 78% to 40 INR (1 CAD) in Sensex.

The company’s fraudulent ways of operation did lead to its decline as mentioned in the video- Stakeholder Theory by Professor Freeman. Had Satyam followed the Stakeholder theory and equally promoted the interest of all the “stakeholders”, this debacle wouldn’t have taken place.

Reference:

Associated. “CBC News – Money – Satyam Computers Chairman Admits Books Cooked for Years.” CBC.ca – Canadian News Sports Entertainment Kids Docs Radio TV. 7 Jan. 2009. Web. 16 Sept. 2010.

URL:

http://www.cbc.ca/money/story/2009/01/07/satyam.html

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