Note the Chinese government has completely denied any wrongdoing and it is almost impossible to prove the allegations.However the Chinese Origin IP Addresses point to the Chinese origin of the attacks.One of the main reasons for Google leaving China was the cyberattack on Google computers.China has become the 2nd largest economy in the world and a major world power.With growing power comes more responsibility though can’t think of any global power taking much of that ( USA till recently believed in preemptive attacks on weaker countries).Growing cyberattacks will lead to increased security and restriction of the Internet which is to the detriment of all countries.Note the development of Networking and Communication Technologies has been a key element of the growing prosperity the world over.
India’s Fast Growing Economy is seeing substantial churn in the Top 10 Rankings for Companies.Coal India which recently did a successful IPO straightaway went from being a Government Owned Private Company to the Top 5 in Market Capitalization Rankings.The Top 10 Rankings are dominated by State Owned Companies known as PSUs in India.Despite Privatization in the 1990s,Government Companies Lead the Rankings.Note the Top 10 Rankings don’t have any Private Companies because of the lack of good information about their Financials.Note Most of the Largest Companies in India are related to Banding and Oil/Gas as is the case worldwide.India’s Technology Companies like Infosys,TCS and others are still way behind in Revenues compared to the dominant Materials,Fossil Fuel,Industrial and Financial Sectors.However note that the diversity is much greater when you rank the companies by their market capitalization.TCS and Infosys are both amongst the top 5 recovering strongly in 2010 from their 2008 underperformance.You also see a Capital Goods and Telecom Representation in this Top 10 Rankings
Nokia had lost a big chunk of marketshare in 2009 to local competitors like Micromax,Lava,Spice and MNCs like Samsung,LG and others.In 2010,this trend has accelerated with Nokia losing an astounding 18% marketshare in the first 6 months of 2010.The company’s markshare has been whittled down to just 36% from 54% earlier with local Indian mobile makers gobbling up a 33% marketshare.In the $6.5 bb annual revenue market for mobiles in India,this implies a loss of $1 billion in 2010 revenues.For Nokia,this is another resounding defeat as its Indian Fortress crumbles.Nokia is getting squeezed both on the high end as well as the low end.Local Indian companies are coming up with better features at lower price points and beating Nokia black and blue.Despite huge R&D,manufacturing strengths and an enviable distribution network,Nokia has lost the pulse of the Indian customer.The smaller Indian companies like Micromax are receiving Private Equity money to expand faster given their huge success.Nokia clearly needs more than a change of CEO,it needs to change the whole culture and DNA of the company like IBM in the 1990s.
India’s IT Sector had recently become a victim of new US Protectionist Policies when US Legislature imposed a $2000 Visa Fee on Companies with a Large Proportion of Foreign Nationals.India’s weak protests had failed to change the legislation which was signed onto Law by President Obama.I had written that India should have retaliated against US […]
Note India is the 2nd faster growing economy in the world and presents a lucrative market for US MNCs facing a slowing domestic economy.Also unlike China,India does not have a deficit-surplus issue with the US.India is a crucial market for US which wants to double exports in the next 5 years.India can put punitive duties on imports of aircraft products.Note US exported more than $2 billion in airplane and space parts from the US in 2009 and is expected to grow this strongly in 2010 as well.India can easily replace Boeing with European manufacturer Airbus.India will be the biggest aircraft market in the world in the next 5-6 years as air traffic explodes.Airbus and Boeing are fierce rivals with their disputes frequently putting EU and the US government in WTO disputes.
India’s Business and Political Elite continue to mock the Indian Legal System through loopholes and expensive lawyers.I had written earlier in a post of how Satyam Scandal Kingpin Ramalinga Raju enjoyed luxurious facilities at hospitals despite his jail term.He had managed to avoid questioning by the authorities through excuses of bad health and now he […]