Item in today's Wall Street Journal, page B1 (sorry, the online version of the article omits the part I want to discuss): Sony, famous for delivering consumer electronics that is top-of-the-line and priced accordingly, is starting to ship some simpler, less expensive items. Case in point: the new Webbie HD camcorder, positioned to compete with the Flip. Flip has been made by Pure Digital, which is selling itself to Cisco. Pure Digital CEO Jonathan Kaplan is quoted as saying he's not concerned: "You can't out-price and out-market a great product".
Oh yes you can. Flip may yet win this battle, but the history of business is littered with "great product" that could not compete with someone who out-marketed them.
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