WinZip purchased by turnaround specialist

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Buying a user base.

There are firms that buy old, established names that are past their time. Consider Yuban Coffee and Lavoris mouthwash. (US references; sorry if they're unfamiliar).

As the quote indicates, the buying company invests little in the product. They know the market has long matured and will decline slowly, but until it does, profits can be obtained easily.

At home, I stopped using Winzip after new versions started doing so much for me that I had to spend more time fighting with the program than it was worth. Free, simple zip readers/compressors were good enough. Then XP replaced even those, at least for Zip.

But there are still people who started with WinZip and will keep on using for years. Some might disppear when payment is required, but many others will send the money and continue what they were doing.

In short, an investment in inertia.

Posted by: Anton Philidor   Posted on: 07/18/05 You are currently: a Guest | Members login | Terms of Use

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