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Technology Stocks : Arris International PLC (ARRS)
ARRS 31.660.0%Apr 4 5:00 PM EST
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From: Arthur Tang2/21/2008 6:11:15 AM
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The economy is steady, then your market has three segments, the poor, the middle class and the rich.

If you sell the product or service to the middle class, and the rich, you will lose money on the rich for poor contents. And some middle class may not be able to justify paying the same cost as the rich. So, normally, market research will find the price points for the poor(10%), the middle class(80%) and the rich(10%). To squeeze out the maximum profits, you may have to sell three classes of products or services for the middle class, which means a total of five different price points. This has been proven out at GM with five brands of automobiles. Once they started to reduce brands, the business shrunk.

So, ARRS has to prepare the launching of five levels of service of triple play. Software modification of transmission speeds may be a good start. Customer retention by speed or richness of contents may obtain maximum profit for the cable customers.
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