The beginning of Borlands is certainly very interesting and unusual, and there are very few people like Philippe Kahn, who have confidence to such extent. But was this action ethical This question arises because Philippe created a false environment to convince BYTEs salesman. Should this act be considered as strategy or a smart move within the game Or it should be considered as unethical
Philippe was determined in what he had to do. He made a goal beyond his current financial resources, which was to place an ad in BYTE magazine. He launched a successful venture selling 150000 worth of software through one ad, as it is the business rule that higher risk gives greater profit. He took a very big risk by fooling BYTEs salesman. If BYTEs salesman would have caught him at any stage, Philippe would never to be able to hit his target market because BYTE would surely deny working for Borland in future. I dont think that Philippes action was unethical in anyway. It was his strategy to reach his target market. Today many companies place their products in such position which its product is not capable of. For e.g. no one would get wings to fly by drinking Red Bull. Though we that getting wings from Red Bull isnt possible at all, but we dont consider that ad as false. The situation of Borland is different but same law applies here. Though what Philippe showed was faked, but he didnt intend to betray or deceive, nor he was trying to grab someone else benefit. Rather than considering it as ethical or unethical, we should appreciate his ability to think out of the box. Philippe diagnosed his external and internal environment and on that basis he took a very risky decision which proved successful for him and his company.