It is possibly a blogging faux-pas to link to a blog entry on another site that links back to an entry on this site. Especially when I have written all 3 posts, but I expanded a little on my previous Sun post on BusinessGeek. I have gone more in depth into the Brand equity implications and a basic financial analysis of Sun’s ability to compete. If phrases like “Brand equity”, “Gross Margin” and “Cost of Sale” make you yawn reflexively, this article may not be your cup of tea.
The essential summary though, is that Sun are entering a market their company is not structurally able to handle. The only way they can compete is to cut costs, which will impact negatively on their only remaining key differentiator in the market, post sales service.