Hello Crew,
This is the link: http://www.inc.com/magazine/20050201/mth.html
The article is titled: Train Wreck.
This is being discussed over on the MRR Forum. The title of the thread over there is “Mike Wolf and MTH Prevail”.
In my humble opinion it’s a good article. Some posters felt that it was biased towards MTH but I didn’t get the impression. Seemed like it was neither for or against Mike Wolf but basically stating the situation regarding the Lionel case. I liked it because we get to know something about Mr. Wolf’s background, how he got started in the business, and how things have come to the point they’re at now. It also pointed out some of the “Dirty Laundry” that Lionel and Mike Wolf had.
Whether one supports MTH or is displeased with the company the article, IMHO, is still worth reading. [;)]
Peace and High Greens!
It’s a very good article. Doesn’t change my opinion about Mike Wolf or Lionel, but I guess we’ll have to wait and see what comes out of this “Train Wreck”.
The article suggests that both parties might have behaved unethicaly. If that is the case than the courts must decide who broke the law and who pays. Even if “everyone” does it (something illegal), the one who gets caught is the one who will pay. Just ask Martha Stewart or Richard Nixon).
Another interesting point. Mike estimates he will spend $4 million on the case. If I remember correctly DCS cost 2.5 million. Too bad this much money and effort is being spent by both sides instead of improving products!!!
I did not realize that MTH was hurting so badly. I wonder if Mike Wolf 's and Lionels efforts would have been better spent on making their product lines competitive. On the other hand, perhaps Mike had no choice but to try and have the courts save his business from the combination of Lionel’s alleged heavy handed actions and market conditions.
Whatever the true facts are, both companies better get their eye on the train industry and off each other or some other upstart will come and knock them both down.
Jim H
I’ve been following the MTH/Lionel thing over on the MRR forum. As an *** who uses DCC, the comments about Mike’s snit over DCC have been very damaging to the potential good will he could have gotten. Having said that, I really appreciated reading the article and have much more sympathy for Mike. I only wish he could mend fences on the HO side as I would hate to see his ideas go down the tubes.
I’m curious as to why MTH is loosing money with such superior product and Lionel had a very good 2004 . [:D]
I agree with you Mecovery.
I do admit that many HO and N modelers, myself included, are upset over the QSI lawsuit.
However, having read the article about Mr. Wolf helped me understand the situation a little better.[;)] I had read about the “friction” between MTH and Lionel but Wow! I was not aware how severe it actually had deteriorated! The article suggests that Mr. Wolf wanted “revenge” against Lionel. Unfortunately, “business vengence” from even the most intelligent of managers can quickly backfire. This often leads to the old cliche’ “Who Gained What?”, after both sides–winner and loser–survey the damages.
It’s saddening that both companies winded up wounding each other as it’s apparent from the article that both sides suffered heavy losses. I do feel bad for the MTH employees that had to be let go.
On the QSI lawsuit, which was not mentioned in the article I still feel the same way as before. However, as I’ve mentioned on other threads, I do believe that MTH would actually have a fair shot at the HO market in a couple of years if Mr. Wolf does lose the lawsuit and then makes the effort to work with the NMRA in the command control arena. As mentioned by Mecovery “Mend Fences”. [:)][:D][C):-)][4:-)]
In a positive light, anything is possible.[:D]
High Greens.
"I’m curious as to why MTH is loosing money with such superior product and Lionel had a very good 2004 . "
Heck, that’s easy: Lionel didn’t have to pay for development costs! [:D][:D][:D]
Seriously, though, do you really believe that Lionel had such a good 2004? They can say that they did–anyone can do that in a press release or interview–but there’s absolutely nothing available in the way of an annual report or public record to back that up.
Very interesting article!