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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: gdichaz who wrote (32733)	10/2/2000 8:28:05 PM
From: Seeker of Truth	Respond to of 54805

Why can't we compare Rambus or QCOM to a company with large manufacturing operations? It seems to me that QCOM became more valuable after it sold some manufacturing operations. It also seems to me that the intellectual property content of new product development is much higher than excellent execution in manufacturing. The latter typically uses well known facts very carefully and extensively. Admittedly, there are times when manufacturing expertise makes all the difference between success and failure for a product, integrated circuits being an example. But even there don't we see a trend wherein the design of the circuits generates the most value of all the steps? Manufacturing is often outsourceable, invention isn't. Sales/employee is only one of many measures but I think it has some validity as one important measure, particularly the rate of increase with time. I reiterate that we are comparing gorillas, not abandoning the gorilla analysis for a one parameter measure.