Behind Next's sea change, a lesson about market niches: Was it a PC, or was it a work station? Even its designer didn't know for sure

Article Abstract:

Next Inc's decision to get out of the hardware business and concentrate on software instead sends a message to companies who might consider entering a market without identifying a market niche. Steve Jobs, who co-founded Apple, created the Next machine, which was a powerful, sleek device that incorporated CD-ROM and various advanced features. Unfortunately, a market for the machine was never defined. Jobs called his company's product a 'scholar's work station,' but at $10,000, Next's machine was priced too high for the education market. The machine was marketed to corporate audiences, but they were unimpressed. Next machines sold well as workstations, but over time, Next's products were not able to compete in terms of power. Jobs' company faces a formidable challenge in the software industry. By writing a version of Nextstep for Intel microprocessors, Next could provide a way for microcomputer makers to invade markets currently controlled by workstation companies, but Nextstep has a disadvantage because it is proprietary. Unlike Unix, Nextstep is not an open operating system.

Prepackaged software, Management, Computer software industry, Software industry, Operating systems (Software), Operating systems, Column, Workstations (Computers), Jobs, Steven, Operating System, Workstations, Management Style, Market Entry, NeXT Computer Inc., NeXT (Workstation), NeXTstep (Operating system)

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Compaq trims prices and sues Dell on ads

Article Abstract:

Compaq Computer Corp cuts prices on its microcomputers, responding to low pricing by competing manufacturers. Compaq also files suit in Federal District Court, complaining of unfair and deceptive advertising practices by one of Compaq's competitors, Dell Computer Corp. Dell declares that it will fight back, saying that Compaq is trying to intimidate a smaller company. Industry observers call Compaq's price reductions an acknowledgement of a highly competitive market. Compaq's shares close at $62, up 62.5 cents. Dell's shares close at $27.125, down $1.50.

Computers, peripherals & software, Court Cases, Pricing Policy

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Businessland chain to offer products of Compaq again

Article Abstract:

Businessland Inc and Compaq Computer Corp have patched up their rift and the computer retailer will once again sell Compaq's products. Compaq had pulled its products from Businessland in Apr 1989. Compaq claimed that Businessland wanted concessions such as discounts and special terms so the retailer could undercut competing stores. Compaq refused to go along with the terms and removed Businessland as one of its retailers. Analysts say the split hurt Businessland, which suffered its first losing quarter since 1984 at the end of 1989, more than Compaq.

Computer and software stores, Contracts, Computer stores, Distribution channels, Vendor Relations, Retail/Reseller Channel, Businessland Inc., BLI

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