Social Networking Making or Breaking Company Reputations

I read this thought provoking article on the power of social networking at E-Commerce News

"You've heard the hype about viral, homemade TV ads on YouTube . You've read scathing peer-to-peer product reviews on blogs. You've seen brands evangelized or slammed by teens and twentysomethings on social-networking sites.

On Aug. 8, for example, Wal-Mart Stores (NYSE: WMT) launched the Roommate Style Match group on Facebook; 1,000 members joined. The idea was to market dorm furnishings to college-age audiences, but several hundred vehement comments surfaced about Wal-Mart's labor practices, hijacking the brand's message."

While in the UK HSBC has been forced to back down on student overdraft fees after a campaign on the social networking site Facebook.com. More than 5,000 students got the bank to reverse its decision to stop free overdrafts for graduates after joining Facebook's Stop the Great HSBC Rip-Off!!! group. Read more...

Companies beware!!!