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To: Paul van Wijk who wrote (134719)6/27/1999 10:53:00 AM
From: edamo  Respond to of 176387
 
paul...re "4 ways....."

i tend to agree with what you post. diversification in the form of free isps or free computers to isp subscribers appears to be an admission that the base product, in this case the plain vanilla pc is not so saleable on its own merits, so an extra benefit must be added to same. this is primarily in the consumer/retail sector, and it is a major marketing error, which may generate short term sales but negates long term profits. in comparison to the cellular phone industry, the service providers subsidized the price of the equipment to pay for infrastructure investment in individual cellular systems. it appears the pc makers will do the opposite,but not to further the investment into the internet,but to sell pcs....both provide a revenue stream, but what business are you in...service or manufacturing? a manufacturer cannot sacrifice core business and key accounts to go in a direction which may be momentary. a manufacturer has to be an innovator, to capture new opportunity. to diversify far astream is akin to becoming a conglomerate. to diversfy within your core business is desirable as in the case of ibm. my opinion based on experience..thanks, ed a.