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Technology Stocks : Corel - Investors with no Humor -- Ignore unavailable to you. Want to Upgrade?

To: A. Reader who wrote (474)	3/9/1998 5:40:00 PM
From: Mr. Coffee	Read Replies (1) \| Respond to of 1094

They just don't get it. On one hand, management states last fall that it is actively targeting the enterprise customer, and then it comes up with an obvious retail-driven strategy with a sub-$100 price point. You will now see street prices around $79.95! What are the corporate license-only customers paying for Corel's CLP licenses? WordPerfect Suite for sub-$40? The corporate customer is not price-sensitive to this level. Their first concern is corporate viability, crdibility and especially service, support and training. Pricing is well down the list. What good is pricing your software so ridiculously low if you can't even give it away? Until Corel has an infrastructure and channel capable of delivering enterprise-quality services, they don't stand a chance, no matter what the price. Stating that this will enable Corel to "go after the sub-$1000 PC market" is also absurd. Corel's OEM department historically has had to practically give their stuff away (Packard Bell deal @ $0/seat). Why not push aggressively with the sub-$1000 OEM vendors and maintain some level of value at retail, but also in the corporate marketplace? I guess this is the type of strategy you'd expect from a company that has always focused first and foremost "on-the-box" and from a VP Sales who comes from a telemarketing/commodity product/price sensitive space like Sylvester & Dell Computers. They really don't get it...