America 1982-Chapter 193 - 72: There Happens to Be a Company That Needs Help_2

Just like Actor Corporation’s unauthorized document compatibility with Lotus Corporation, Microsoft had no interest in obtaining authorization from Micro-Innovation Company, opting for direct and rough unauthorized compatibility.

When Micro-Innovation Company asked Microsoft in confusion why they would make their software files compatible without authorization, Microsoft’s response was, "We just did it, and if you’re not happy about it, sue us in court."

However, Seymour Rubinstein, the experienced boss of Micro-Innovation, was an old hand at this and had been both friend and adversary to Bill Gates for many years. Knowing each other inside out, he could tell what Microsoft was up to without even thinking.

So Micro-Innovation didn’t initiate a lawsuit at all and acted as if nothing had happened, giving Microsoft no chance to ride on their coattails. Consequently, although Microsoft Word was compatible with WordStar files, they failed to create any buzz and continued to lag in sales.

Neither individuals nor large companies were interested in using a document processor that required the purchase of a new accessory that cost hundreds of more, a so-called mouse, and committed to memory instructions as thick as a book before they could enjoy a perfect user experience.

Unable to ride on Micro-Innovation’s popularity, Roland Hanson prepared to promote Microsoft Word as if it were a branded cosmetic.

Since they couldn’t outdo WordStar in professionalism, they attacked from the angle of user rate. Microsoft Word would not be positioned as a luxury good in the short term but promoted as a consumer product. They partnered with computer magazines and software dealers, offering a personal experience version of Microsoft Word for free to subscribers or to those who spent a certain amount in software stores.

Just as they were finalizing the promotion with those magazines and dealers and about to pay out, Roland Hanson discovered that the names on major computer magazine software sales charts had changed. The software that had dominated the word processor sales charts for four years, WordStar, was replaced by one called OSS, which had also displaced Lotus 1-2-3 as the top electronic spreadsheet software.

The very moment Roland Hanson got his hands on all the information about this software and personally tried it, he found that Microsoft Word, in terms of sheer ease of getting started, was no match for OSS.

OSS didn’t stuff its software with tons of features to show off power and professional capabilities; it focused on purely practical word processing and spreadsheet functions, had a clear position, met basic commercial office requirements, and most importantly, it was very user-friendly and easy to learn. The entire manual was condensed to a mere ten pages.

What was scarier was that it was completely free now. By simply calling Actor Corporation and leaving their address and phone number, and being willing to pay for postage, anyone could receive a copy of OSS.

Roland turned to Tommy and said, "This method of offering free products to seize market share and cultivate user habits and brand impression seems unprecedented in the computer software industry; it’s usually a tactic of the cosmetics industry. So when I saw your message, my first thought was, ’Have you sold cosmetics before?’"

"I’ve sold everything, Mr. Hanson," Tommy said to the forty-nine-year-old marketing guru with a wink.

"How many users does OSS actually have now?"

"We sold 100,000 sets initially, distributed another 100,000 through the training classroom program, and then there were nearly 200,000 people who applied through a free giveaway advertisement in the newspapers immediately after my interview," Tommy said proudly to Roland about his software’s sales.

Free sales are still sales, so Tommy spoke with confidence.

But Roland immediately burst Tommy’s bubble, "Those numbers are inflated. From what I know, OSS has at most 300,000 users."

"Three hundred thousand people, which means there are now 300,000 people eagerly sitting in front of their computers, learning the OSS software they obtained for free," Tommy, unperturbed by Roland’s poking at inflated figures, continued.

A user base of 300,000 was certainly intimidating. Since the rebranding and reintroduction of Microsoft’s document processor as Microsoft Word, domestic sales in the United States hadn’t even reached 30,000. Microsoft had hoped to boost user numbers by giving it away like a consumer product, only to be preempted by Actor Corporation.

Thinking of this, Roland continued, "Plus, with Actor Corporation developing another piece of software for sale, those 300,000 users will become potential customers."

"You can drop the word ’potential,’ Mr. Hanson. I don’t know if you’ve noticed, but Benjamin Rosen of Compaq has already sold 20,000 personal computers using Actor’s customer data in a month," Tommy looked at Roland.

"Because of the training classroom program that SSD always initiates, we’ve designed a reward system for the participants, allowing those who achieve an A and don’t own a personal computer to purchase one on installment with a credit card. If they don’t get a computer-related job by the end of the training, SSD will help them with the installment repayments. Many participants who didn’t get an A also couldn’t resist the urge to spend and bought the Compaq computers we recommended. However, this activity currently only supports Compaq computers," Tommy explained.

"So how does Benjamin repay you, considering you’ve boosted Compaq’s market value quite a bit?" Roland asked after a moment of surprise.

Tommy looked towards the head of their customer service team, that Garry Good who had wanted to ’connect’ with Jason the first time they met, and said with a smile:

"He got IBM to join the EFF. So now, when students purchase computers on installments, alongside Compaq, IBM will soon appear as a brand option. Moreover, our training courses, which initially included only OSS, may now incorporate other software, like Intuit Company, founded by a fellow Stanford alumnus. Their financial software could liberate accountants from mountains of paperwork. And Platinum Company, also a Stanford student start-up, has developed a simulation analysis software that could be used by scientists or university labs to..."

"How can Microsoft join EFF and then appear in your training rooms with courses on Microsoft Mouse?" Roland Hanson interrupted before Tommy could finish, asking decisively.

It was evident that EFF was using the training program to cultivate user habits, and Roland felt it was essential to have training on the operation of the Microsoft Mouse in it—arguably a more efficient, state-of-the-art computer accessory that people accustomed to keyboard controls deemed unnecessary.

Since the people who were already accustomed thought the mouse was optional, why not have those with no computer basics get used to a computer accessory called a mouse?

To Roland, Tommy said, "We welcome all companies that are passionate about assisting others in the industry, have a sense of responsibility, and are willing to help each other to join. For example, there is a company in need of help right now—Actor, which is facing some troubles."