Can Fred Wang keep customers from bolting? The minimaker's financial woes may spur more client defections
Article Abstract:
Wang Laboratories Pres Frederick Wang is working feverishly to save the company from going under. The troubles stem from several directions: slipping sales of its minicomputer line due to competition posed by microcomputer networks, a high cost structure, a poorly regarded sales and maintenance force, and a slow response to consumer demand for network connectivity. As a result of its financial troubles, Wang's credit ratings have been cut and its customer base is slowly switching to other systems. Fred Wang is considering various options, among them a shift of focus to vertical markets such as law and financial-services firms, a marketing joint venture, or a financial partnership. But Wang's survival remains in question as competitors like Data General Corp and DEC are moving in on its base of installed systems and its office automation business.
Publication Name: Business Week
Subject: Business, general
ISSN: 0007-7135
Year: 1989
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Computer makers are blue - but not IBM
Article Abstract:
The computer industry is going through a minor slump due to the slowing down of demand, particularly in the US where fears about the economy have tempered the buying mood of computer users. Analysts expect IBM to report a sales increase of about six percent, however. The company's positive performance can be traced to its aggressive marketing strategy that was highlighted by a massive revamp of its sales force, and discounts of at least 35 percent on mainframe prices. The tough sales stance hurt IBM competitors such as Amdahl Corp, Unisys, and DEC. All three are expected to report second quarter losses. Industry analysts are questioning whether IBM can sustain its growth in the face of possible insufficient mainframe demand and a tottering economy.
Publication Name: Business Week
Subject: Business, general
ISSN: 0007-7135
Year: 1989
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The Prime buyout is tough to compete: Why is Whitney paying top dollar for ailing computermaker?
Article Abstract:
J. H. Whitney and Co, a NY-based investment firm has reportedly offered $1.35 billion for ailing Prime Computer Inc. Analysts believe the $20 per share offer for the minicomputer manufacturer is extremely risky. Few analysts see Prime prepared to take on the $1 billion in debt the acquisition strategy will require. Prime's expected new management may drop a large part of its sales force to concentrate on building existing accounts. The company's minicomputer sales and CAD systems generate a large amount of cash. CAD represents more than half of Prime's business. However, analysts expect the CAD market to move toward standardized systems.
Publication Name: Business Week
Subject: Business, general
ISSN: 0007-7135
Year: 1989
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