As a result, Seagate has been subject to increased price competition and lowering market share with VARs and OEMs alike. "Where a computer manufacturer maybe only had one source, now they have a choice of [several] sources, and the computer manufacturer would like to buy from all of them," Shugart says.
But industry watchers such as Porter aren't too worried about Seagate's ability to bounce back.
Says Porter: "In Seagate's history, it has had a number of spots where it almost fell off the cliff. But it survived because it is a well-managed company."
Porter recalls that, in the latter part of the '80s, Seagate's product line was beginning to grow a little stale. But through a series of acquisitions and with the guidance of a group of strong leaders, the company sailed a different course for the '90s.
Despite its recent problems, Seagate will remain an industry leader, believes Porter. "It will be an aggressive competitor and will not lose money in the future," he says. "It will get its act together." Shugart says Seagate has followed Intel Corp.'s basic strategies for success. This includes developing products more quickly, investing more in manufacturing and instituting better corporate branding.
Seagate's branding push, which kicked off just recently, will be seen
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