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Technology Stocks : Nokia (NOK)
NOK 6.070-1.5%Dec 5 9:30 AM EST

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To: Mr.Fun who wrote (4993)5/27/2000 3:21:00 PM
From: samim anbarcioglu   of 34857
 
Fun,
>> Sustaining margins is just as important as building market share

At the expense of sounding didactic, you are neglecting an elementary economic principle: opportunity cost. In my career I have seen, and even participated in so many projects that have failed because of a wrong 'buy or make' decision.

The following table will illustrate the lost oportunity cost:

(Profit margin) * (Volume) = Gross revenue

Margin percentage Volume Total
-----------------------------------------------
(10%)* ($3,000,000,000)= $300,000,000
(35%)* ($0)= $0

This should clarify any haziness in your mind about the lost opportunity while trying to reinvent the wheel (which has a big chance of being out of round, given what we are observing).
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