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Biotech / Medical : VISX

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To: yosid who wrote (1567)	1/27/2000 1:10:00 PM
From: Sun Tzu	Read Replies (1) of 1754

I don't think your comparison is valid. Home depote provides the same goods as the local hardware store. There is virtually no difference between a 2x4 bought at either place. Nor is the service and the knowledge of the local HW necessarily better (and often it is worse). So the big chain stands to win. However, when it comes to one-to-one services the situation is very different. Here you are talking about workmanship. Do you remember the haircut stocks? Despite great potentials, none of those franchises made it. Why? Because people don't like to trust their hair to just anyone, regardless of the shop's name. More importantly, all hair dressers are not the same. Word of mouth counts a lot. And when some hair dressers got plenty of customers, they left the franchise and got in the business for themself. So LVC will become the training grounds for the doctors who as they make a name for themself will work for themself. Meanwhile there will be an out of proportion number of bad experiences at LVCs which will prevent people from going there. At least that is my theory. The bottom line being that I do not believe personal services can be streamlined. Nor do I think that there is much room there for economies of scale. ST

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