To: Ken Pomaranski who wrote (7906 ) 3/3/1999 2:22:00 PM From: Zakrosian Read Replies (1) | Respond to of 10072
Ken - Happy birthday. As usual, you bring up some good points, but I'd like to take issue with a couple of them 1. First, becoming the standard means that all computer vendors feel compelled to include a ZIP in all machines. It does NOT mean 'becoming the standard in removable storage'. This last definition is meaningless. I think you're half-right; the definition is meaningless unless you consider the size of the removable storage market. 21 million installed Zips is significant and if it can grow by even 8 - 10 million over the next year it becomes even meaningful. 2. do you really think a customer cares what removable storage device is in there? ZIP, Superdisk, Sony: who cares? The 20 - 30 million Zip users who eventually upgrade their PC's, even if they only have 3 or 4 disks that matter to them, will probably insist on a Zip. 3. 2. ZIP is offered as a lower priced alternative to the floppy drive. '2' is a low margin, losing proposition. True enough in the short term, but if the strategy suffices to get the installed base large enough, there will be a lot of customers who will insist on the Zip and that could allow IOM to price their drive at a premium to any potential competitors. 4. The ZIP is not required for proper operation of a computer, as a CPU chip is, for example. It doesn't matter whether it's required as long as enough users feel it's necessary to them. Also, while a CPU is critical, it's irrelevant who makes the CPU. In that respect, one could say that the Zip drive has the potential to have even more brand loyalty than the Intel chip (though I know that will probably never happen).