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Technology Stocks : Zenith - One and Only -- Ignore unavailable to you. Want to Upgrade?


To: Robert Utne who wrote (3601)12/11/1997 4:35:00 AM
From: Robert Utne  Read Replies (1) | Respond to of 6570
 
1998 Prescription for Zenith:

1. Focus on delivering high demand, innovative consumer products within the most lucrative CE sectors:
A. HDTV set tops
B. screens for HDTV
C. Audio equipment for HDTV
D. Divx players

2. Sell Cable modem division (too much competition for too ltttle return on investment) and focus network systems marketing on company's proprietary set-top boxes to the Rbocs (and other major telcos), MMDS companies, terrestial broadcasting users and STB companies.

3. Eliminate all NTSC-based products from supply chain (sell remaining inventory to LGE for LGE distribution) and become the first 100% digital CE company.

4. Spend $25 million on CE advertising targeting the top 10% income tier.
"Zenith, 100% digital pleasure"

5. Close all Chicago locations and sell off all Chicago-based assets and move cadre of key employees to existing Texas and Mexico facilities. Sell all manufacturing facilities and equipment to LGE. Focus on R&D, marketing and distribution.

6. Execute world co-branding, co-marketing and co-distribution strategy with LGE. Zenith to focus on introducing newest CE products to high-end market and LGE to follow, targeting mass purchasers. Product cycle: phase one (first six months) 100% Zenith, phase two (next 6 months) 50% Zenith and 50% LGE, phase three (100% LGE). Maximize partnership marketing with "best of breed" partners.

It's radical, lean and targeted. What better prescription for ZE?