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[OM] market economics [no OM content]

Subject: [OM] market economics [no OM content]
From: William Sommerwerck <williams@xxxxxxxxxx>
Date: Fri, 11 Sep 1998 16:25:35 -0700
Ken Norton has an odd perception of how the computer market developed.

The IBM PC was a success mostly because it had the name "IBM" on it. The
ads helped, but they did _not_ create a demand. The overwhelming
majority of businesses refused to buy (what they perceived as) a "toy"
computer from a non-normal new company (Apple). Once they decided they
needed computers, it was IBM. Period. And I'm willing to bet that not
one viewer out of a hundred had any idea who Charlie Chaplin was, or
understood the reference to "Modern Times." THAT commercial could very
well have backfired. (I'm still surprised it didn't.)

Actually, we are far AHEAD of Japan in developing HDTV. (The Japanese
system is outdated analog technology that requires very wide bandwidth.)
Americans are so uninterested in quality "anything" that I'm glad HDTV
is going to be forced down their throats. This is one occasion when it's
good the US government had the sense to sidestep the market and "force"
US companies to develop something better than what the Japanese offered.

Although Bill Clinton is a Democrat, his administration has been
relatively restrained (with respect to interfering with the
marketplace), compared to some other Democrat (and even Republican)
administrations.

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