Sunday, November 06, 2005

LCD screens in Shanghai taxi's

economy - Fight on the emerging market for LCD-screens

One of the more amazing new markets in China is that of LCD-screens that have emerged on almost every empty spot in Shanghai, in almost every possible size and are proliferating fast into other cities.
ESWN documents an interesting fight between the two major content providers for those screens, the Nasdaq-listed Focus Media and the would-be Nasdaq-listed Target Media. ESWN notes two conflicting market share studies by two market research companies that give both companies respectively a market share of 70 percent and 49.8 percent. Even I noted that this does not add up.
ESWN is an interesting source, since he is connected to another market research company and would know what he is talking about. He does not believe that either of the research companies is cooking the books to please their customers (Focus and Target Media themselves). This is his take:
When a media organization commissions a study by a research company, the researcher is supposed to comprehend the needs of the client and design the appropriate the study. For example, if the client does not have a presence in airports, the study may exclude airports to cut down on costs. In the study report to the client, there is usually a section on the limitations of the study, and such exclusions would be mentioned. Unfortunately, the client usually takes the report and selectively release favorable sections to the public while omitting to mention any limitations. This is how it is.

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