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Biotech / Medical : VISX
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To: nihil who wrote (1695)3/1/2000 11:31:00 AM
From: Charlie Smith  Read Replies (2) of 1754
 
nihil:

It is dangerous for the entering firm (BOL) to initiate a price war (unless it has both a production cost advantage and a quality differential.

BOL's $1.8 billion in sales vs. VISX $300 million means BOL needs no cost or quality advantage to grab share. Assuming the products are merely equivalent means BOL can afford to finance a long fight. Question is: Will they?

Charlie
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