Tuesday, July 24, 2012

No Dictator is above Trade!

When it comes to Dealing with Dictators, American Foreign Policy is Remarkably selective, Depending on Strategic Interests

Here it goes. What is one thing common between Paul Biya, Berdymukhamedov, Obiang Nguema, Idriss Deby, Karimov, Zenawi and King Abdullah? Well, you got us right they are all world renowned dictators. But then, one thing that is even more common is the fact that in spite of being dictators, they are all US allies.

Interestingly, these dictators also feature in Amnesty International reports either as criminals or as human rights abusers. Berdymukhamedov of Turkmenistan is known for his authoritarian rule. Similarly, Obiang Nguema of Equatorial Guinea, Biya of Cameroon and Islam Karimov of Uzbekistan are involved in numerous executions. Deby of Chad and Meles Zenawi of Ethiopia are also behind ongoing slaughters, rapes and abductions going on in the country and King Abdullah of Saudi Arabia denies freedom of expression and legitimacy and practices unfair trials. With almost all these dictators, US has oil trade to the tune of billions. It imports oil from Turkmenistan (1,000 barrels/day in 2009) and sells Boeing jets to the Turkmen government. Similarly, it imports petroleum products from Equatorial Guinea (58,000 barrels/day in 2010) and Chad, while it imports uranium from Uzbekistan (51,000 barrels/day in 2010). Ethiopia is the largest aid recipient from US & US imports around 160 million barrels annually from Saudi Arabia.

To say the least, US, the world’s greatest superpower and self proclaimed upholder of human values seems to judge a nation only by strategic worth.


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Friday, July 20, 2012

In Terms of both Content & Intent, Yunus’ ouster Elicits Controversy

In 1997, when the world was worried about providing micro loans to 100 million poor people by 2005, Yunus was one of the key enablers who made it possible by 2006. The recent bashing against him can only breed conspiracy theories. The most prominent is that Sheikh Hasina has been livid that Yunus’ Nobel Prize makes his stature in Bangladesh higher than her own. She has spared no opportunity to malign him since he planned a political party in 2007.

Moreover, the central bank has set a new record in bad timing! The argument that the retirement age was 60 (he’s 70 now) and Yunus had failed to take permission when appointed indefinitely to the post in 1999 does not help the government’s cause at all. If the issue was alleged financial irregularities, it never came to the fore in the ruling. Unfortunately, the only achievement is a bad name to Grameen Bank and the micro finance industry. And it hasn’t made Sheikh Hasina’s glory any greater.
 

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Wednesday, July 18, 2012

The Communications Industry, in toto, by Becoming a Telecom Operator

Google is Huge. Its m-cap of $201 Billion Proves it. And it can Easily Grow Bigger by Conquering The Communications Industry, in toto, by Becoming a Telecom Operator. Question is – should it take The Chance?

There are however some challenges. First, infrastructure, which it lacks. Explaining one disadvantage, New York-based Jordan Monahan, Analyst, Goldman Sachs, tells B&E, “Google could use Android to encourage the concept of a single portable contact which could shift from cellphone to fixed-line phone to PC, depending on one’s accessibility. But Google does not own last-mile connections, so the telecos could drive up the cost of last-mile access to render a Google calling-plan unattractive.” Even 4G spectrum is not something with which Google is operationally familiar. If Google is to match investments in infrastructure made by US’ #1 carrier Verizon (with 93.2 mn subscribers), which has spent more than $98.1 billion on it over the past decade (including $10 billion for 4G spectrum), Google will have to invest 41.5% of its revenues each year, on stitching together just the skeleton for providing mobile services. Expensive, but not out of reach, considering that at present the company has $30 billion in cash balance. Also, if required, it can easily raise billions by dilution of shares, considering that at current level of m-cap, the company has to dilute only 1% to raise $2.01 billion!

But there is the dark side as well. Currently, Google’s Android OS is a craze amongst mobile manufacturers. Being an open source software stack, it does not have the liberty to anger the likes of Verizon and AT&T. In short there could be an attack on Google’s popularity if it decides to rise in the telecom services market. The Federal Communications Commission still does not have “appropriate” net-neutrality rules in place for telecom operators, that can prevent them from blocking Google from their subscribers. Quite possible therefore, that a repeat of Verizon making Bing the default search platform on its new Android launches (instead of Google) and of Apple blocking Google Voice from iPhone users for 18 long months (post launch), can occur, if Google tries to become an all-integrated player. So what’s the way out for Google, for whom a new dream could well threaten much of the very present?

With millions across the world already familiar with Google, what the company could do to live its mobile carrier dream, is to take the middle path – become a mobile virtual network operator (MVNO; similar to Virgin Mobile which was acquired by Sprint). While speaking to B&E from Massachusetts, Charles King, President of Mindspring & Pund-IT Services adds, “At this point, with the market changing so quickly – via the rapid growth of smart phones and emerging tablets – I think Google is best served by remaining as it is and not becoming a Mobile Network Operator (MNO). It is a trusted OS/services partner, which is an enviable position to have in such a market. It could however try its hands at the MNVO model.”

Google should not apply for a mobile licence, not bid for spectrum or bother about infrastructure. All it has to ensure is to work on a retail format to connect directly with end users, strike roaming deals with current operators, distribute voice minutes and data traffic and tie-up with third-party app-providers. Given that Google has been a master at handling marketing and dealing with end-users in the past, it could live its mobile carrier dream as a “virtual” operator. Not that Google cannot anger competition and become the largest US telecom operator. Cash it has and time too. But it has to realise that the power of possessing nuclear weapons is in “not” detonating them. For now, Google should let the Android magic work wonders and according to plan.


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Friday, May 18, 2012

Trick an angel of death into sparing your soul... by shopping online!

You hear it [almost] everywhere these days – discount sites offering great deals. Many think the idea hasn’t come of age. One yamdoot disagrees. So does Snapdeal.

Not many Indians know him as ‘Grim Reaper’. For people of this country, he goes by the name of Yamdoot, the famous messenger of death. Actually, if you want to add a touch of funk to his identity, call him ‘Yamdude’, as he is christened in the latest Snapdeal campaign.

Group-buying and discount websites are a rather modern day occurrence in India. But every passing day, more and more are buying into the idea. Most are either teenagers or those with a youthful spirit. Understanding this, Snapdeal has come up with a concept that appeals to youngsters, is light-hearted and snappy to say the least. The campaign has Yamdude sporting shades, branded shoes, watches, jewelllery et al. He is even shown enjoying a good facial treat at a beauty salon! This series of four TVCs has non-serious 20-25 second-long scripts, and that is perhaps where the ads score the most points.

The series of ads (where Yamdude is shown enjoying discount offers from Snapdeal.com), was conceptualised by DraftFCB Ulka. Some are of the opinion that the content lacks originality, because it is a direct lift from a foreign ad. [Remember the Green King IPA beer TVC, where the young lad survives some ‘fatal’ accidents because the angel of death is busy sipping beer at a bar?] Agreed. But given that the idea is now being put forward to Indian consumers, one’s got to trust that these TVCs can influence brand recall – and in favour of Snapdeal.

Explaining the thought process behind the campaign, Shiveshwar Raj Singh, COO, DraftFCB Ulka tells 4Ps B&M, “At Snapdeal, the kind of deals you get are so wonderful that even immortals would be hard pressed to turn them down. With this simple premise, we came up with the idea of the God himself getting enamored by the range of earthly experiences that you can get access to with Snapdeal. Once you have an iconic image like ‘Yamdude’ in your campaign, then all product offerings get wrapped around it”. Without using a celebrity, the wisemen behind the campaign have managed what others using the most publicly-recognised faces often can’t – paint the real meaning of the brand’s punchline. Through this campaign, Yamdude does prove why ‘You only live once’.

The campaign has been launched across all media vehicles, including TV, radio, Out of home and online. While nearly 35% of the ad spend has been reserved for airing TVCs, the rest is equally distributed amongst the remaining media forms.

The first TVC was launched on December 15, 2011. It showed a skydiver struggling with his parachute. Along came Yamdude, who spares the skydiver’s life in exchange for his Snapdeal vouchers! Other TVCs showed a marathon runner whose life is spared, an old man who gets to live another year (because Yamdude gets busy with his Snapdeal consignments), and a Snapdeal delivery guy who comes face to face with Yamdude (Yamdude takes the delivery at room #773H – invert the room number vertically and it reads HELL!). The work of the lead cast Vijay Maurya – who plays the role of the powerful yet likable Yamdude – in putting across the message is worth a word of appreciation.

For more articles, Click on IIPM Article

Source : IIPM Editorial, 2012

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