Word: bottoms
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...cannot wipe out piracy. But you can minimize its bottom-line impact. Just as music companies, rightly or wrongly, made peace with MP3 file-sharing services like Napster, so must manufacturers from the U.S. heartland learn strategies for coping?by developing new revenue models that emphasize service offerings around intellectual property. Such models may include lowered pricing for a developing market; universal licensing schemes to sell music, films, games and software on a subscription basis; or emphasizing revenues that flow from service and support rather than product, a model that has been successfully exploited by the Linux community...
Hewlett-Packard is in transition mode--and notjust because former CEO Carly Fiorina was pushed out in February, making way for Mark Hurd, hired April 1. The company is also changing from the bottom up, shifting away from old technologies like monochrome printing toward newer, more lucrative markets like portable photo printing. Coming off a strong second quarter in which profits rose 9.3% from a year earlier, the company is laying off workers--1,900 in the second quarter alone--and refocusing its printing business on the increasingly popular color laser jets; HP has 42% of the market. There...
...them," says Vyomesh Joshi, head of HP's printer and PC group. "They're trying to buy the business." HP continues to diversify, presenting rear-projection TV, for instance, as an extension of its innovations in printing. No doubt HP is hoping to avoid a race to the bottom. --By Jeremy Caplan
Starbucks isn't the only nonmusic company to think CDs will boost the bottom line. Victoria's Secret, which started the trend with a line of classical CDs back in 1988, recently sold a Bob Dylan compilation in its lingerie shops. Target is selling an exclusive EP from singer Rob Thomas, and Cracker Barrel Old Country Stores are serving up a special disc from country stars Alison Krauss and Union Station. Pottery Barn has put out more than 70 different titles, with music touted among its top-grossing product categories. The Gap, Restoration Hardware, Lane Bryant and Eddie Bauer have...
...There was a sport where you tried to see how many could get into a telephone booth. You put the heaviest guy on the bottom and the lighter guys piled in on top of him. I suspect we knocked over a few telephone booths that way,” he says. “That was one activity. I suspect that eating goldfish was another...