Hancom Challenges to MS, the Market Dominant

Hangul and Computer (Kim Kun president0 challenged to MS for office market by introducing ‘Nexcel’ that can reciprocal convert with Ms Spread Sheet ‘Excel”.

Hancom developed ‘Nexel’ with Nex Soft and is performing beta test (consumer test immediatelt before introducing to the market). It can import Excel file ( .xls), edit and save, so it has almost same function to ‘Excel’.

It will be packed with word processor ‘Hangul 2002’ and sold as Hancom Office X (not decided) from 9th of December.

Hancom will sell this software at 25% of MS products, and expect to extend market portion. At the moment MS dominates business office market of 100 billion won.

‘Office’ means a package of word processor, spread sheet, presentation diary softwares that are frequently used by business. ‘MS Office’ composed of ‘MS Word’ ‘Excel” ‘Power Point’ ‘Outlook” etc shares 90% of domestic market.

It is indispensable software for B2B, so it has settled as the standard.

Hancom competed with MS by ‘Hancom Office’ including ‘Area Hangul’ ‘Lotus 123’ ‘Hancom Presentation’, etc since 1996.

However, Hancom products was behind of MS in reciprocal function and higher in price relatively and defeated in the market.

MS introduced rent concept for user to use software for a fixed period at reasonable cost, on the other hand, Hangul products had to be purchased at rump sum money.

From ‘Hamcom OfficeX’ Hancom will sell the products that lost the functions after a certain period like MS.

Kim Kun, the president of Hancom commented “business will be able to purchase competitive products in function at reasonable price, so the business will be able to reduce financial burden.”

MS commented, “Unless they do not copy our products, the functions must be behind of ours” and added, “a business focusing on productivity will not choose Hancom products.”

‘Hancom OfficeX’ doesn’t include presentation and daily software, so it is a question whether Hancom’s market strategy will succeed or not.

Hancom disclosed, “At the moment, we will compete with price and develop presentation and others that has reciprocal functions with MS in the next year for total competition.

Seong-Yub Ra cpu@donga.com