Bonum Certa Men Certa

Kill Lotus Strategy

Date: 1988



To: Bill Gates From: Scott Oki Date: december 1, 1988 Subject: Kill Lotus Strategy


The purpose of this memo is to revisit the rationale for my proposal of super aggressive pricing action as in integral part of the "Kill Lotus Plan" (more reasonably known as "Lets Get 30% Share for PC Excell").


Pursuant to Billg's memo, a small task force met and cane up with a proposal.The operative goal was to spend between $10 and $20 million to gain 30% share of the spreadsheet market over an 18 month time frame...

Lotus for all intents and purposes is a one product company. This is both good and bad. The bad point is that they have enormous resources to throw at defending their position .. The good part, and one that was commented on by Billg, is that even a small erosion in their financial picture will tend to accelerate their negative spiral .. Herin lies the opportunity...

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