Zenith looks for blue skies beyond the Air Force contract

Article Abstract:

Several new government contracts may indicate that Zenith Data Systems Corp is regaining market share in the computer industry. The company won a $740 million contract with the Air Force that includes the manufacture of 300,000 desktop computers. Zenith has won three out of four recent government contracts and now holds 37 percent of the Federal microcomputer market. The company expects to reach into the corporate sector as well with the introduction of the Z-Station, Z-Server and Z-Note computer. The new government contract was won on the basis of business machines, and not on the merit of computers designed specifically for the military. In order to move towards more business sales, the company changed its distribution center, increased its research and development funding and hired a new president.

Contracts, United States. Air Force, Market share, Financial Analysis Software, Marketing Strategy, Defense Contract, Zenith Data Systems Corp.

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Behind the price cuts

Article Abstract:

The computer industry trend in 1991, to reduce prices on microcomputers, is good for consumers and represents a consumer attitude about premium-priced microcomputers. Industry analysts note that consumers are no longer willing to pay premium prices for machines from IBM and Compaq Computer Corp when they can get comparable quality for less money from companies such as Dell Computer Corp and AST Research Inc. Observers note that recent price cuts in the computer industry, which include cuts of as much as 34 percent from Compaq Computer, has been the result of the competitive assault of low-end computer makers. Companies such as AST Research and Dell Computers have had a devastating effect on the market share of IBM and Compaq Computer because of their aggressive pricing strategies.

Compaq Computer Corp., CPQ, Prices and rates, International Business Machines Corp., IBM, Dell Inc., DELL, Loyalty, Price cutting, column, Trends, Industry Analysis, Competition, Computer Industry, AST Research Inc., ASTA

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