your logic is correct Steve as far as business school ethics are concerned (you know, greed, avarice, etc.). Sony will need to get the rest of the market to accept their version of the drive. most OEMs appreciate doing business with independent third party drive companies. Compaq doesn't want to do business directly with SONY, HP, Dell, Gateway, etc. If Sony/Fuji developed a patentedly potentially successful drive, they take the proceeds from the drive, turn around and use it to beat competitors in the market place. Compaq competes with Sony, they don't compete with Iomega. For this reason HP stated that they "preferred IOM to remain independent", i.e, they didn't want to see IOM taken over by another OEM. IOM being bought out by WD would be fine.
Obviously, Fuji didn't think IOM would be as successful as they have been. Dataquest stated in their last research report that the floppy replacement would be an 8 billion dollar industry, whomever succeeded in this respect. So, IOM capturing 2 billion in the first real year at trying has 6 billion to go and Sony wants a chunk.
I still believe that IOM, after fully analyzing the Sony/Fuji situation, will play ball. There is no reason to be a dead lion in a market full of living dogs. |
