Executive Review II What the Corporate Writing

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I think as a company we made some good moves -- we were well positioned when we invested in capacity but we simply underestimated our competition. As a result, we fell to 4th in the market and had to reinvent ourselves.

What the competition did and our response

Our response: We retrenched to our original strategy. We had intended at the outset to follow a differentiated strategy -- do dominate the high-end niches. We launched the Phoenix to symbolize our revival and set out to capture the Innovator and Mercedes markets. It worked. We knew we had a good, efficient sales team, one that was probably more efficient than those of our competitors.

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We took advantage of that, and put out the best computer on the market.

The strategy was a success. While the top two competitors were chasing after the mass market and doing a good job at that, we found a groove in the high-end market that we had always wanted to pursue. We succeeded by moving to an area in which our main competitors were not focused, and in doing that we restored our profitability and our growth......

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