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Technology Stocks : OBJECT DESIGN Inc.: Bargain of the year!!

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To: hasbeen101 who wrote (2748)2/20/1999 4:51:00 AM
From: GUSTAVE JAEGER  Read Replies (2) of 3194
 
Damien,

I see a lot of folks keep complaining about ODIS's presumably poor marketing strategy... Yet, I want to put in my contrary 2 cents on this issue as well: I think that ODIS's marketing's just fine!!
Yesterday, I was reading an interesting article in the paper edition of the Harvard Business Review (February #):

Harvard Business Review
Judo Strategy: The Competitive Dynamics of Internet Time

by David B. Yoffie and Michael A. Cusumano


hbsp.harvard.edu

The authors pointed to the high-profile NSCP vs. MSFT clash but their whole judo theory could apply to ODIS vs. ORCL as well.
The main point, according to this article, is for the small internet challenger to avoid a ''sumo-like head-to-head'' confrontation with the big guys... Hence, ODIS wouldn't benefit as much as you think from throwing $ after $ in an agressive marketing scheme. Better for the small player to use its contender's own energy against it.

How does this translate in our case study? Better to let Computer Associates spending all the $s it can in raising the market's awareness for ODBMSs. Going head-to-head with ORCL, SYBS, and CA when the world is not ready to bet the farm on some unmainstream technology is not wise. That's what the developers of so-called e-money have tried to do: CyberCash, privately-held DigiCash, and others have spent millions of $ in hyping their electronic currencies --to no avail. The world is just not ready to play that game now.
If ODIS would have spent millions more $ in marketing, the outcome would have been a few more 100Ks in the top line and... a red bottomline --like all these dot-com companies that spend every penny they can get their hands on in advertising/promoting/hyping/etc...

Gustave.
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