PC price wars force electronics chain to curb expansion, push big appliances

Article Abstract:

Best Buy Company is scaling back its expansion plans in response to increasing competition and continually declining profit margins, an indication of the financial difficulty that large computer retailers are confronting. Best Buy is attempting to compensate for its diminishing gross profits by offering an assortment of non-computer items that carry larger margins, the result of a protracted and fierce price war with Circuit City. Best Buy is also concentrating its marketing efforts on higher-margin computer peripheral equipment, such as printer supplies and cables as well as providing technical support. Analysts suggest that Best Buy's promotional efforts, which variously include deferred payments and extremely low prices, ultimately inhibit customers from shopping until there is an exceptional sale.

Computer stores, Best Buy Company Inc., BBY, Distribution channels, Retail/reseller channel

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Sun to unveil prototype of low-cost PC for Internet that uses Java language

Article Abstract:

Sun Microsystems prepares to display a prototype of a Java-based information appliance that may ultimately be marketed as an inexpensive alternative to current corporate networking PCs. These Internet PCs threaten to dramatically alter the architecture of present computing, offering consumers a $500 alternative while losing only an expendable amount of computing power. Java's potential to provide cross-platform compatibility throughout the software industry may reclaim some of Microsoft's expanding market share and make the market more competitive. Use of Java-based information appliances could save corporations network maintenance, licensing fee and initial investment costs, providing employees simply with the applications and power they need to perform specific duties.

Product development, Product information, Network computer, Network computers, Sun Microsystems Inc., SUNW, Computer terminals, Company product planning

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Did IBM unit bribe officials in Argentina to land a contract? Scandal claims top members of Menem government, 3 Big Blue executives; millions for a rugby coach

Article Abstract:

An Argentinian judicial inquiry is investigating allegations that officials of IBM's subsidiary, IBM Argentina, made illegal payments in order to receive a $250 million contract to modernize the Banco de la Nacion Argentina. Although no formal indictments have been made, the scandal has led to the forced resignation of five directors of Banco Nacion, several senior Argentinian government officials and IBM Argentina's top three officers. Despite IBM assertions that nothing illegal has transpired, the SEC and US Justice Department have requested information on IBM Argentina's business operations. Argentinian federal magistrate Judge Adolfo Bagnasco is expected to officially decide IBM's culpability in the matter before the end of 1995.

Justice, Public Order, and Safety Activities, Investigative Procedures, Computer industry, Investigations, IBM Argentina S.A., Banco Argentina S.A.

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