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eMachines' Survival Strategy

Boot Camp feature for Friday, November 16, 2001

Struggling eMachines says it will survive. Bloomberg Boot Camp, a report on today's technology. With it's stock so low it has been de-listed... .low cost computer maker eMachines... has been fighting for its life. But... the company's new CEO Wayne Inouye maintains...

"Well we've essentially re-birthed the company. The company really doesn't resemble what it was two quarters ago. It's a brand new company."

Inouye has brought in all new senior management and has re-defined the company's business strategy... .

"Essentially what we've done is to create a business strategy to make money on every box that we sell. In the past, business was predicated on making money with Internet relationships."

Inouye is a former Senior Merchandising VP at Best Buy... .one of the retailers eMachines is counting on in its hoped for revival. It offers, for instance... a machine with a 900 MHz Celeron processor... .loaded with Windows XP... without a monitor... for 399 dollars. It's plan to win buyers over includes a new emphasis on customer service. It has beefed up its call center... .and will take advantage of the remote assistance feature in the XP operating system...

"Our technicians can get online with a customers unit and essentially fix it as though they were in their own house."

In the past... eMachines offered support, believe it or not... for just 15 days after purchase. Now... that has been extended to one year. Given the mindset of consumers and the state of the economy, the future of eMachines may not be secure... .but the steps the company is taking appear to be in the right direction. Bloomberg Boot Camp, I'm Fred Fishkin.