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Pros and Cons of the Jobs Blueprint

NEW PRODUCTS
PLUS: On Nov. 10, a                     MINUS: The Gossamers
line of blazingly fast                  still make Apple a
Macintosh computers,                    no-show in the market
code-named Gossamer,                    for PCs that sell for                   
will debut. They use                    under $1,500, a sector
a 275-MHz PowerPC                       that is expected to
chip and sell for                       account for 70% of
$1,800 to 4,000.                        holiday shipments.


OPERATIONS
PLUS: Jobs is pushing                   MINUS: Building-to-
a build-to-order scheme                 order is tricky. It has
similar to Dell's. Long                 taken IBM, Compaq,
term, the plan is to                    and Hewlett-Packard
reduce the huge number                  more than two years
of models today to                      to get new manufac-
just five that can be                   turing systems up
configured on order.                    and running.


DISTRIBUTI0N
PLUS: Selling Gossa-                    MINUS: Apple runs
mer Macs direct,                        the risk of losing even
over the phone                          more retail shelf and
and the Internet.                       space if this move
Jobs has slashed                        angers resellers, as
the number of                           Apple did when it
Mac distributors                        tried to set up its own
from five to two.                       sales force in 1993.


MARKETING
PLUS: Apple has                         MINUS: While widely
roused its fans                         praised, the ad
with the high-profile                   campaign mimics
''Think Different'' ad                  Apple efforts of recent
campaign, developed by                  years that preached
Jobs and Chiat/Day,                     to the Macintosh
creator of Apple's                      faithful and didn't
famous ''1984'' ad.                     expand sales.


DOWN THE ROAD
PLUS: Jobs will focus on                MINUS: The much-
inexpensive network com-                hyped network com-
puters that store data and              puter may never
applications on a central               go mainstream if PC
server instead of a PC hard             prices keep falling.
drive. Early next year, a               Moreover, these
sleek MacNC will debut                  products have
for the education market.               razor-thin margins.


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Updated Nov. 6, 1997 by bwwebmaster
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