Wednesday, April 11, 2007

Google China

Driving market share northwards is surely the key objective of any business enterprise and undoubtabley it should be so. Its not very uncommon to find organizations going to any extent to grab the maximum share of the pie. There are a lot of ethical issues involved in defining the scope of what is right/ what is wrong. There is no count of the companies which have fallen into this trap.

Another complimentry issue which closely runs in the background is the issue of brand equity. Brand Equity has been defined as "An intangible asset that depends on associations made by the consumer".

So in terms of value, what market share is to a company, brand equity is to a consumer. And the proportionality function is -

Market Share:Organization :: Brand Equity:Consumer

So when we think about a company with the credo - "Do no evil" , there is a logical implication that both the above stated ratios stand to gain, in a postive way.

Google is one company which has lived up to all these expectations. They showed great candor about a year back when they admitted there shortcomings and the challenges they were facing in China -> Google in China

But what a disappointment it has been to see Google apologize to rival search engine.

Now we will have to wait and see how will they go ahead with there stated objective -

"We're in this for the long haul. In the years to come, we'll be making significant and growing investments in China. Our launch of, though filtered, is a necessary first step toward achieving a productive presence in a rapidly changing country that will be one of the world's most important and dynamic for decades to come. To some people, a hard compromise may not feel as satisfying as a withdrawal on principle, but we believe it's the best way to work toward the results we all desire."

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