<<Windseye... RE: "What's your take on the overall strategy"
Aquisitions: CPQ has positioned itself for the future during a window of opportunity (now). "Total Global Solutions" - product/ service exclusitivity.
Price cutting: I don't completely understand the "desired" impact of this strategy.
To lead with this strategy is usually employed by financially
sound corporations who desire to weed out competitors who
are not as strong. They intend to recover margins later. Service.
It can also be employed by corporations using a product that
is at the end of its life cycle thus not corrupting future pricing policies and margins of
future product lines.
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I think you're right and I think the scenario can use some more flesh on the bones... the under $500 PC easily slides into becoming the Network Computer, as well as the PC terminal for all of the small, medium, and large enterprise nets. So they are pressuring all the box makers by essentially threatening them with the brave new (really old) world of interconnected main frames, minis, work stations, servers, etc., PCs and pseudo NCs. Of course the pseudo NCs can readily be upgraded, etc., so they provide a real low level entry point into the CPQ solution complex. |
