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 : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: Kenneth E. Phillipps who wrote (8602)	11/16/2000 10:15:16 PM
From: Kenneth E. Phillipps	Respond to of 14638

The Shape of the New E-Company The Economist, November 11, 2000 Two years ago Nortel Networks took a revolutionary decision. It would move from vertical integration to "virtual" integration. Since then, the company has sold 15 manufacturing facilities around the world that make things like printed circuit-boards. The plants have been bought by large manufacturers such as Solectron, SCI and Sanmina, which were already selling to Nortel Networks and have now signed new long-term supply agreements with the company. The benefits, says Chahram Bolouri, president of global operations, come partly in the form of lower costs, because these contract manufacturers have a far larger turnover than Nortel Networks alone would have had. They can also afford to keep track of the fast-changing manufacturing technology of the particular components they produce, and invest heavily in their development. nortelnetworks.com