#Open Letter to CBM
06-Oct-91 11:27:19
Sb: #14915-#Open Letter to CBM
Fm: Harold W. Grigdesby 76304,3030
To: Andy Finkel 70007,4173
Andy,
OK… maybe I should have offered a better analogy than that of Consumer
Reports and customers shopping for cars.
What I was really trying to get at is the concept of prudence. When
capital is at risk, one should survey the marketplace to determine the
likely outcomes of a business strategy.
With respect to your employer… Commodore did a very strategic thing when
it made a Unix box. The US operation should be commended for keeping it
alive. Most customers equate Commodore with quality hardware at bargain
basement prices. If Commodore US can provide quality color Unix boxes at
bargain basement prices to education/ business/ government, I think the
company will have a real winner.
One of the case studies out of Harvard deals with the fate of Timex, the
watch company. They were king of the low cost watch market shortly after
World War II from a zero departure point. In the fifties and sixties, one
could walk into any drug store in America and buy a Timex. As kids, we can
remember John Cameron Swayze (sic?) saying… "Timex, it takes a licking
and keeps on ticking."
Timex went from the being the pre-eminent manufacturer of low cost watches
to near bankruptcy. Today, they buy watches from an OEM and only resell.
What happened: They miscalculated the effect that LED/LCD technologies
would have on the low-cost watch market.
Andy, I understand your commitment to both the Amiga and Commodore. You
certainly understand the tension that often exists between designers and
marketeers. How do you get essential non-technical entities like myself
and marketeers to understand new technologies and develop a winning
business strategy based upon them.
That is Commodore's challenge. Many things are happening in the
work-station marketplace right now. Whatever Commodore does, it must
consider the likely reactions of other companies.
Thank-you for your participation in this thread.
Hal Grigdesby, Krannert Graduate School of Management, Purdue University
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