The marketing campaign behind Corel Corp.'s newest software release this week might seem a little ironic.
It centres around a website called seewhogotfired.com and some humorous videos that poke fun at reality shows — as well as the perils of choosing the wrong office productivity suite.
“Ten or 15 years ago, no one got fired for buying IBM,” explains Amish Mehta, Corel's chief executive officer. “In the last few years, no one got fired for buying Microsoft. But I think with the product we're offering now, if you don't at least consider us as an alternative — you're making a big mistake.”
That may well be the message to those considering Corel's new WordPerfect Office 12 as an alternative to Microsoft Office. But Corel itself has made some big mistakes since launching its first software 15 years ago — the culmination of which saw the once-publicly traded company snapped up by Vector Capital, a San Francisco-based venture capital firm, for $98-million (U.S.) last August.
Today, Corel is a private company and Mr. Mehta is Vector's man in charge as “interim” CEO. Predecessor Derrick Burney is now the company's chairman.
“I came on board to really drive the turnaround of Corel and get the company positioned to a point where revenues were starting to grow again,” Mr. Mehta said. “There are probably very few things that are more rejuvenating than seeing a company come alive, but that's what I am seeing here.”
In the six months since Mr. Mehta took on the job, Corel has reorganized its structure, refocused its marketing efforts and recommitted itself to cutting costs. Besides the latest version of its office suite, it released a revamped CorelDraw Graphics Suite 12 in February and plans to ship a new version of Corel Painter by the end of the year.
The marketing effort behind its products is more focused, too. These days, the company is concentrating on small and medium-sized businesses owners, law firms and governments that don't want to spend a bundle on their software.
“We've really homed in on these three segments because we can't be all things to all people given our size,” Mr. Mehta said. “We're not really looking to take on Microsoft.”
Long-time Corel watchers agree, and describe the company's improving situation as a classic turnaround under new ownership.
“They realize they can't go toe to toe with Microsoft, which has been the big failure of Corel management in the past to think that they could,” says Warren Shiau, a software analyst with IDC Canada.
“It's like a light heavyweight realizing he shouldn't be fighting in the heavyweight division.”
Mr. Mehta admits Corel isn't in the same ring as Microsoft and its dominant share of the office suite software market. To present Corel as an equal competitor today would, he said, “be an incredible compliment because we're less than 1 or 2 per cent of the market.”
But that doesn't mean Corel is bowing out of the office suite fight. It is still dishing out some jabs — WordPerfect Office 12 is more compatible than ever with Microsoft products such as Word, Excel and PowerPoint. Price is part of the strategy, too. If they convert from the market leader's software, Corel says new users could save as much as 60 per cent over a comparable Microsoft offering. A full version of WordPerfect Office 12 is selling for $399.99 in Canada, while an upgrade costs $149.99.
Corel has also fired a subtle shot at its competitors by offering a “liberal” upgrade policy. Customers using older versions of Microsoft Office software don't have to pay the full price to switch.
Could that be a sign Corel hasn't lost its underdog cockiness during the transformation from public company to private holding?
Mr. Mehta isn't saying. Corel's new marketing campaign aside, he also won't predict when he may fire himself as interim CEO.
“We're certainly not done rebuilding yet,” he explained. “I am sure I will be looking to hire my replacement when we are.”
Special to The Globe and Mail
