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To: Joe NYC who wrote (27786)7/2/1998 2:59:00 PM
From: Dale J.  Read Replies (2) | Respond to of 33344
 
Jozef,

No, I'm just saying you have to understand the nature of a price war. CPQ failed to take into consideration that IBM, HP, etc. would respond, thus taking away the initial advantage from CPQ. CPQ also failed to consider how the newly introduced low end products would reduce sales of their higher end products. A few astute CPQ investors raised this concern, but CPQ responded with "don't worry we know what were doing."

Packard Bell almost went belly-up with your strategy.

No, Packard Bell almost went belly-up because they make crappy products.

Dale