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Non-Tech : Any info about Iomega (IOM)? -- Ignore unavailable to you. Want to Upgrade?

To: Ken Pomaranski who wrote (44701)	1/22/1998 11:30:00 PM
From: Cogito	Read Replies (1) \| Respond to of 58324

>>They basically said: IF THIS CAMPAIGN DOESN'T WORK, IT'S ALL OVER! What they are saying is that lowering prices is not increasing demand anymore. (That elasticity I told you about, and got blasted about before). What they said is that they will sacrifice the future (lower headcount, R&D spending) for this last ditch effort. C'mon Allen, It's over!!!<< Ken - With all due respect, I believe we're just going to have to disagree. They most definitely did NOT say they were going to sacrifice R&D to finance ads. They said they would defer pricing actions and hiring. Why would they be concerned about tie ratios? Because that's still where the bulk of the money is. Nor did they say that if the ad campaigns don't work it was all over. They said that the expenditures would negatively affect revenues. It isn't the same thing at all. Do I need to point out that there are a lot of successful companies out there who will testify that advertizing works. Many IOM longs have complained that Iomega didn't do enough of it. I applaud this "gamble." >>Also, their product execution is starting to wear thin. How long have you heard about the laptop ZIP? how long have they complained about components? 3 years?? The Buz? etc.. They keep blaming others for the fact that they are failing to execute.<< No, since the Zip drive has only been shipping for two years and ten months, we have not been hearing about component shortages for three years. Moreover, the component shortages for Zip have been solved, and they are working on the new supply lines for laptop Zip and Zip Plus. They are taking the responsibility for fixing the problem. Buz is actually a pretty complicated product and the delays have been due to trying to streamline the installation procedures. Ken, I know I'm biased. I am a very positive person. Maybe I'm giving Iomega management too much of a break. But you are definitely viewing the situation with too much negativity, in my opinion. I will say that I do agree that the split was a really stupid move, and that Kim Edwards has made some important mistakes. I'm just not prepared to throw the baby out with the bathwater at this time. - Allen