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.

Politics : Politics of Energy -- Ignore unavailable to you. Want to Upgrade?

To: RetiredNow who wrote (11200)	7/13/2009 5:01:35 PM
From: Brumar89	Read Replies (1) \| Respond to of 86355

Imagine if in the middle of the computer transformation the Reagan administration worried about the upheaval and tried to rescue this vital industry by making huge investments in leading mainframe companies. I get it. We were wrong to take over GM and Chrysler. Previously, each company produced its own mainframe computers using proprietary hardware and software. The company's sales force then sold these complex and expensive products. The PC changed this. In a period of just a few years, the industry was pulled apart and reassembled. The entire industry began to rely on common hardware elements (microprocessors) and packaged software; selling was handed off to third parties. In business we call this moving from a "vertical" structure (where a company handles its own development, manufacturing and distribution) to a "horizontal" structure (where some companies specialize in building components while others integrate them and handle distribution tasks). If this happens in autos, it'll affect more than GM and Chrysler - it'll happen to the Japanese & European companies and Ford as well. Have no idea if this will develop.