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To: stephen wall who wrote (72118)	10/14/1998 9:09:00 PM
From: stock bull	Respond to of 176387

Stephen, thanks for the article. Interesting reading. If the information age doesn't improve productivity, than I don't know what will. However, I don't believe for a moment that technology isn't the driving force behind our productivity improvements and the current economy we enjoy. (Excluding Asia and the problems we are seeing.) Stock Bull

To: stephen wall who wrote (72118)	10/14/1998 10:04:00 PM
From: nihil	Respond to of 176387

RE: Porter on Strategy Porter wasn't wrong, because he laid out three generic strategies, not two: overall cost leadership, differentiation, and focus. Today they are cost leadership, differentiation, and quick response. Competitive Strategy was published in 1980, and refers not at all to Intel, Cisco, Compaq, although he does say: "Recognize Industry Trends Early. Sometimes industries consolidate naturally as they mature, particularly if the primary source of fragmentation was the newness of the industry; or exogenous industry trends can lead to consolidation by altering the causes of fragmentation. For example, computer service bureaus are facing increasing competition from minicomputers and microcomputers. This new technology means that even the small- and medium-sized firm can afford to have its own computer ...." It is clear that Intel by abandoning semiconductor memory and emphasizing microprocessors in the mid-1980's, and Microsoft, Cisco and Dell all followed a strategy of focus. The remarkable thing is that Intel and Dell are probably the low-cost (though not the low price) producers in their industries. All of them are able to charge a premium because they are state-of-the-art. Look at the premia one must pay to buy a 450MHz machine to replace a 166MHz which still works as well as it ever did or Windows 98 to replace Windows 95 which crashes less often today than it did in 95. If any of these market leaders fall behind in technology, they will (soon) be unable to charge premia. The strategy of quick response is forced upon them because they are focused. No one cares how cheaply one can produce a 486 chip.