From Panda's Rock City press release:
" Within the next three months, Panda expects to introduce advanced Alpha-based models and upgradeable models of Rock City that incorporate VSPA and Compass technologies to extract additional performance at a very low price point in a small form factor. "
This statement implies that neither VSPA nor Compass are used in the current offering, and therefore, it is simply a packaging solution. I think that the press release is misleading in that at a glance, one would assume that these technologies are incorporated into these sub $1000 systems. Smoke and mirrors!
Crane's marketing model is very simple. He projects his buying habits (i.e. designer oriented, conspicuous consumption, etc.) on the general public, and assumes that if he would want this, then everyone else will. Furthermore, since he would be prepared to pay a premium based simply on artistic appeal, so will everyone else. The seeming paradox of Rock City is that the budget minded consumer, those most likely to purchase a sub $1000 PC, are not apt to place any premium on its unique appearance. They'll opt for a comparably equipped $699 Compaq simply because it's cheaper.
And how does Crane validate his marketing model? At trade shows! If 30,000 people at a trade show told him they'd buy a Rock City, he'd view that as a 30,000 unit opportunity. Never mind that 99.9% of those responding were casual browsers with no cash in hand. In other words, he validates his marketing model without actually qualifying the buyers. The results can be very misleading as was the case for Archistrat.
The biggest mistake that anyone can make trying to analyze Panda is to apply logic. There is no logic. There is no 5 year business plan for this company. There's no 2 year plan, or even a 1 year plan. There is no plan at all. Crane does whatever he wants, whenever he wants, and it doesn't have to make any sense. He considers Panda to be HIS company, and he alone is the sole decision maker.
Ryan |
