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 : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: geewiz who wrote (28836)	6/5/1998 10:39:00 AM
From: Knighty Tin	Respond to of 132070

Art, I thoroughly enjoyed the MIT piece. I actually think it is simpler than that. When there are excessive profits and relatively low entry barriers, you attract competition from the Moon. <G> And entry barriers are one thing that technology has lowered tremendously. Think of the cost to start a new magazine before the pc offered anyone publishing software. Now, even kids from the slow side of the class, like JFK JR., can start a rag. They can't necessarily succeed, but they can make things tough for those who are already raking in advertising dough. Even areas that are not commodity, such as pharmaceuticals, are taking on more commodity features. First there were the generics and then there is the biotech approach. Companies can develop unique products and reap a lot of excess profit, but their windo of opportunity doesn't last as long as it did in the past. For example, Tagamet was the top ulcer drug and one of the most prescribed drugs on the market for nearly a decade before Zantac hit the scent. I don't think Viagra will have a honeymoon of anywhere like that amount of time. My guess is 18 months to 2 years, maximum. Given how much research costs, that really puts the screws on huge profit margins over time. MB