TimaxSoft, local largest SW company, was entered into a state of workout July 6th by its main bank, Woori bank. TimaxSoft has experienced severe financial difficulties for challenging against global competitors like MS.
The company is Korea’s typical SW one founded by Dr. Bak Dae-hyun, ex-professor of KAIST. The major cause of TimaxSoft’s failure is considered excessive diversification from its competent middle-way SW. That is the company invested much capital to develop and launch local-made OS first against MS Window, and also ran into SI market, where large companies had already occupied stably. In the last 2008, the company exceeded sales of 100 billion won, the first record accomplishment as a local SW firm. Many people praised its ambition and expected surprising success, as feeling a little doubtful.
When the company plunged into the SI market, large companies began to regard TimaxSoft as their competitor. The alternative window replacing MS Window delayed its real launching, and as a result Timaxcore, SW developing subsidiary of TimaxSoft, was taken over by Samsung SDS.
TimaxSoft’s failure tells us above all that the small enterpreneur’s company focuses on its own best ability. Too quick diversification could bring passionate novice into close extinction. (The end)
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