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Document source:
Original backup tapes owned by Dutchman2000, obtained by Atarimania.
Documentary research and PDF layout by Laurent Delsarte.
Note that these backup tapes contain A LOT of information spread out in many folders, meaning it will take time to process the important bits.
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Document identification:
Original file name: NORDIN.00274.DOC extracted from CEO.01JUN84
Title of document: Future Strategy
Author(s): Richard K. (Hud) Nordin
Original file date: 1983-08-29
Type of document: Memo
Target audience: Internal
Status: Ready
Reference (Atari): (unknown)
Reference (Laurent Delsarte):
 For any discussion, this PDF has been given the reference
 BKUP-1983-08-29-MEMO-0003A-E
 which should be quoted in any communication.
Tags: #Atari #8bit #6502 #400 #800 #1200XL
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From: Rick Nordin == Richard K. (Hud) Nordin
To: Joe Miller == Joe Miller (Joseph B. Miller III)
Subject: Future Strategy
Date: 1983-08-29

1. What business are you in?

The toy business. Specifically, microprocessor-based electronic entertainment devices and accessories aimed at the mass market.

2. What business do you want to be in?

The information business. Specifically, electronic devices for the manipulation of information, aimed at the mass market. This subsumes the manipulation of computer generated information for the purpose of entertainment. I see our current business to be very much a fad. Nothing else can explain our market situation. It's essential to move from our present base into providing real information services to consumers, the kind they just can't do without. Atari Central comes to mind, but it may be too late to fend off the companies who were smart enough to have already begun work in this area.

Well, that's the business I, personally, want to be in, but I don't think Atari can cut it, now. I believe Atari blew its chance, and its only hope now is tofind a niche, a specialization, within this business where they won't be trod upon by the IBM's and AT&T's who will dominate the market. Perhaps Atari can use its experience in the toy business to get a small share of the entertainment portion of the information business. Perhaps.

3. What do you need to do well in order to be successful in this business?

Immediate action to get into the market. Immediate ! Tools to do the job. Stability. Communication. Long-range planning. Participation in planning. Commitment from management. Trust.

4. What is your comparitive advantage in this business?
How defensible/sustainable is this comparitive advantage?

The Atari name and some good people. The name is already starting to be tarnished. Since good products do not seem to be being planned, the good people don't have much reason to stay. Atari is losing it, fast.

5. Who is your most serious competitor? Why?

Currently, Coleco. They seem to know how to make a profit. The Japanese. How long will they keep licensing their creative efforts before they use their considerable expertise at producing consumer electronics to dominate this market as they have done to other markets in the past?

For the future, IBM and AT&T. They seem to really know how to make a profit. They understand the information business.

6. How will this business evolve over time?

Which business? Current, my preference, or Atari's best hope? Some day, most every home will subscribe to an information service. It sure would be nice to be the company providing that information service. It would even be nice to just get a share of that business. Atari'll be lucky to get a portion of the entertainment subset of that business.