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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?


To: The Philosopher who wrote (26846)7/13/1999 2:17:00 PM
From: Mighty Mizzou  Respond to of 77400
 
fairly easy to move to a different manufacturer quickly

Not so. It is a quality control and logistics nightmare. Take it from one who's been there.

Isn't it better in an industry as fast moving as this one to let somebody else worry about the
capital investment and tooling and concentrate on design, marketing, and oversight of
oursourcing?


Direct control over manufacturing reduces costs and improves quality control. I know of no other huge corporation the size of CSCO that outsources all or nearly all of it's leading edge products. The convenience of outsourcing is costly.

Haven't a number of companies faltered because they overbuilt manufacturing or built facilities which were out of date too soon?

Intel overbuilt but by looking at their chart I dont think it hurt them too much. They'll eventually grow into their new clothes.