Digital commerce: the software industry will decide if its future lies in quality or quantity

Article Abstract:

Softkey International announces a hostile takeover aimed at preventing the merger of the Learning Co and Broderbund Software, highlighting disparate strategies in software development and marketing. The Learning Co has a history of creating good quality products but incurs costs exceeding $1 million for the development of a single title. Softkey takes a commodity approach and focuses on placing bargain software on some 19,000 retail stores, buying lower-quality products for $5,000 to $250,000 or distributing other retailers' products and paying them a percent of the retail price. Some competitors fear that Softkey's bargain pricing will force them to keep pace on the price front, thereby diminishing product quality across the market. The competitors argue that prices should be reduced by attracting more customers, a goal that proves difficult when 20,000 CD-ROMs will be available by the end of 1995, with most retailers stocking a mere 200.

Mergers, acquisitions and divestments, Learning Company Inc., Broderbund Software Inc., BROD, Software Retailing, Company Acquisition Merger, LRNG, SoftKey International Inc., SKEY

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The vision of General Magic buttressed by Microsoft. Now that's an interface!

Article Abstract:

General Magic apparently may be re-establishing itself as an electronic communication visionary thanks to a deal with Microsoft. The arrangement called for Microsoft to purchase an 11.9% stake in General Magic for $6 million, as well as a license to use some General Magic Technologies which Microsoft declined to disclose. A large number of General Magic's Windows-compatible technologies and products, such as its second generation of Magicap communication devices and Serengeti 'virtual assistant' service that blends voice mail, E-mail, fax and information retrieval into a single voice-driven system, fit into Microsoft's widening view of technology. Microsoft especially is interested in General Magic's patented software agents, which use Sun Microsystems' Java programming language. General Magic Chmn and CEO Steve Markman since 1995 has been refocusing the company's products to meet the growing market for mobile professionals.

Management, Company investment, Investments, NetPhonic Communications Inc., GMGC

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Nimbly, Microsoft has taken advantage of ignorance to reshape the world

Article Abstract:

Microsoft has capitalized on ignorance about software to dominate the software industry. The company's success can be traced to forming a tight and interdependent chain that links its Windows OSes to a range of destinations. These sites comprise productivity applications, the Internet, its consumer products, its programming tools and hardware manufacturers. Microsoft holds an advantage over software rivals with the ability to create future generations of operating systems while creating applications that will run on them. Chmn William H. Gates defends this practice as raising customer value rather than holding an unfair edge. Gates likens the Justice Department's Nov 1997 case against Microsoft to allowing Ford to prohibit its dealers from replacing 'a Ford engine with a Toyota engine.' Microsoft defends its practice of requiring PC manufacturers to include Internet Explorer, its Web browser, when licensing its OS.

Marketing

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