I agree Leo: In fact the opposite should be done.
Make WP* the program that is universal. Open any file format. Upgrade from Word in a snap. Offer for a price, features that word does not offer. Where are the T-shirts and Mugs that identify me as a non-word user (a anti-Microsofie). Build not a cult, but a loyal base of (I am different because I am better approach). The original, The best, The one used on my computer.
People will pay for this program and the identity. The Economic theory of "Elasticity of the Market" will determine the price. Why make a good thing cheap? the potential market share gained will not increase the gross margin due to the large drop in Revenues.
Corel is positioned today January 1st better than it has ever been. It sounds nuts, but when WP was aquired the stock price was around $18.00 Canadian. The future was unknown. Today it is around $2.50. With sales out of over 100 million in 4th Qtr., that unknown future is now the past. Keeping R&D and A&P low. Having most write-offs booked (a cleaner Balance Sheet), the company can easy post a nice profit. This stock will then be worth $10.00.
I can afford to quadruple my investment. Time to average down is near. Time to make some money on this once dog is nearer.
Now that the fog is starting to burn off, the road ahead appears to be more clear.
Corel is far from dead, just geting over that Flesh eating disease (Necrotizing Fasciitis), with a few pounds less.
Mr. Bean |
