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Strategies & Market Trends : Israel

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To: LLLefty who wrote (26)2/6/1997 10:49:00 PM
From: Timna M. Hurwic   of 54
 
LLLefty,

As for Elron, can't say much. I place them in a category of companies which suffer from, what I call, the IBM-syndrome. In other words, companies that get so big that they can't stay in step with the little guys. The bigger they are, the more difficult it is to be innovative in this very dynamic industry. IBM took a hit when they were still producing mainframes while the rest of the industry was running full-speed ahead. Only recently have both companies begun to ride the wave and bring their technology up to date. Elron had a couple of flops in the last few years, including Elronet -- which was saved when Netmanage took it over and introduced Netvision -- and Elementrix... their answer to the Firewall technology (ever hear of it?).

By the way, Scitex suffered the same predicament. They still produce a phenomenal machine, but, even while I worked there in 1990, Fuji was going into desktop equipment. Scitex never really got the hang of meeting the needs of a wider consumer market, and look where they are now.

On a final note, I don't think Elron will disappear in our lifetime, but if you're looking for a huge return on your investment, I'd go elsewhere.

Best,
Timna
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