Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : JDS Uniphase (JDSU) -- Ignore unavailable to you. Want to Upgrade?

To: t2 who wrote (2503)	12/2/1999 3:37:00 PM
From: pat mudge	Read Replies (1) \| Respond to of 24042

Developing fiber optics components requires extremely specialized scientific knowledge and it's in short supply. Even if a would-be competitor could bring together the right talent, they'd have to put their products through long testing/certification processes that would render their products non-competitive by the time they'd passed. The only way to join the game is to leapfrog and while that's possible, it's more likely JDSU, SDLI and ETEK --- not to mention LU, NT, GLW, etc --- will snap them up first. As for one dominant player, right now no one can supply all the products/solutions carriers are demanding and until that happens, calling one company a gorilla and another a king is just so much yammering. Again, just my opinion. No conferences between now and the holidays. Pat

To: t2 who wrote (2503)	12/2/1999 8:36:00 PM
From: cfoe	Read Replies (2) \| Respond to of 24042

I wonder if one of the "barriers" to entry is the scale needed to fulfill customers demands in a hyper growth environment. I recently heard Clayton Christensen speak to this issue. He said that in a "mature" industry, in order to compete effectively, a company needed to specialize and shed non-core activities. However, in an industry like fibre optics, where demand is outstripping or promises to outstrip the ability to deliver, companies need to own as much of the value chain as possible in order to deliver. This seems to be what JDSU is doing with their acquisitions. And if done effectively this could create a barrier to entry, at least for as long as the industry stays in hyper-growth.