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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Tenchusatsu who wrote (458935)	2/24/2009 11:21:53 AM
From: combjelly	2 Recommendations Read Replies (1) \| Respond to of 1573599

"Tim makes the assumption that they're easy to overcome, while you make the assumption that they're not." They aren't easy to overcome. Despite many attempts, no one has managed to break into the volume end of things in decades. The one with the best chance, DeLorean, was reduced to trying to deal cocaine to keep his company afloat. Almost zero volume, high margin luxury cars? No problem. That can be done. But high volume, low margin vehicles like GM builds, no way.

To: Tenchusatsu who wrote (458935)	2/25/2009 12:36:34 PM
From: TimF	Respond to of 1573599

I don't assume their easy to overcome. Any specific individual or company who tries can often find them impossible to overcome if there is a big active competitor already in place. But if there is a competitor in place than the market is already being served. If it isn't being served and its a large market, then its very likely that someone will come up to serve it. In many industries competitors new competitors rise up and get defeated again and again by the entrenched companies in the industry. But the new companies, force the entrenched companies to fight for the customer, with some combination of lower prices, better products, better service and support on the products or other things the customer wants or likes. The competition between the large existing companies also drive improvement. All of the biggest, and many of the not quite so big, car companies serving the US market, or even I believe the whole world market, have been around for awhile. Most new attempts to enter the market have failed. But look at the typical new car today compared to the typical new car from decades ago.