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Technology Stocks : PSFT - Fiscal 1998 - Discussion for the next year -- Ignore unavailable to you. Want to Upgrade?


To: John F. who wrote (2441)10/3/1998 2:41:00 PM
From: Raptor  Respond to of 4509
 
John .. Regarding the article in your post and market share & price slashes

SAP probably charged more for their product. BTW, since article says 'core' .. I assume HRMS is one key item. SAP consulting has generally been at higher rates to extent I am aware of (anecdotal mostly over the past 5 yrs or so). SAP projects are infamous for taking forever and costing HUGE sums of money and resources compared to PSFT. And their product will not measure up to PSFT from a business user/feature aspect.

When a company decides to slash prices it seems to me they are a bit desperate maybe because their product offering and complete package cannot stand on its own merit and other incentives are required to make headway??? Another reason is to try and scoop market share, but this sort of action never seems to get the long-term gains.

Would you buy an inferior product just because the mfr dropped the price below the best product? Maybe, depending on your own priorities and preceptions of value. So SAP wins some clients, PSFT wins some clients, but should we really be scared in the grand scheme of things?

Don't get me wrong in the sense that I am sickened by the preciptous drop in this stock. Obviously I am biased to PSFT because of that and the fact that it is my business to consult on their products.