I looked at the cover page of a major business web site
today and got a bit confused. In the central place reserved for the best stories,
I saw news on Sony’s new Smartphone as well as Apple’s plans for two new
iPhones. In less prominent parts of the web site I read that banks in China
are increasingly breaking lending rules, Japan is considering a spending increase
to go with a potential tax increase, Asian stock markets are falling, and North
Korea are making moves to avoid the influence of defectors. Smaller stuff than
Smartphones, you might say, especially Smartphones from Sony.
So what is going on here? Well, let us admit that
journalists arrange front pages in part to follow the tastes of their customers
– us – which are not perfectly correlated with importance. But it is not just
that. Sony and Apple are star companies, both of which have arguably done
better before than they are doing now (certainly Sony). The combination of
stardom and current problems is very easy to sell.
How important are these
phones? Well, it is hard to say because both companies are holding back
information. But, Apple is supposed to launch one low-end and one high-end
iPhone, and is particularly interested in getting new customers with the low-end
phone. Rumors on Sony center on a very powerful camera, though a good screen
should also be expected. OK, nice stuff. But the same page of the web site has
key information on Asian stock markets and economic stimulus in Japan. Without
the star power of Sony and Apple, the smartphone news would not have deserved
its placement.
What does this mean for companies? Well, we can clearly see
the strong and lasting advantages of high status. Not only do you get solid
coverage of the important things you do if you are a high-status company, you
can also do pretty trivial stuff and find it good places in the press. Not bad,
or what? I am guessing that Sony is particularly grateful, because their actual
fall in economic performance has been a lot greater than that of Apple. There
are few things that last a long time in business, but a high status is one of
the best.We still can't guarantee that this will give Apple and Sony sales over new and powerful Smartphone competitors, of course. Competition happens in many other places than business web sites.
PS: Let me also apologize for the delay in updating this
page. Regrettably I was recently put in hospital by an event on the road, but I
am now improving well and writing new blog entries. At least now and then!