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 : Seagate Technology - Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: manohar kanuri who wrote (253)	12/2/1998 4:33:00 PM
From: William Epstein	Read Replies (1) \| Respond to of 1989

Kanuri; Allow me to clarify. All you say may be true but I was just trying use use an example with which I was familiar to illustrate the time to market problem for new product introductions. Disk drives may not have the consumer appeal that autos do however, there is differentiation, such as, SEG's Cheetah line. (I own one) Here is a product that does not come standard on any PC I know of and yet, it is SEG's most successful new product introduction. Obviously, retail customers like myself, are aware of the differences because they have to specify the drive for their PCs or buy it as a separate component and do their own installations. While it may not be sexy it makes a hell of difference when I use a 3D drawing program or Photoshop. Also, those in the server markets are well aware of the differences. They are probably the best customers and they are willing to pay the extra price to speed up their RAID systems. However, even SEG concedes that if they could have timed to market faster they might have made a lot more money with Cheetah. They certainly would have a longer production run, at higher margins of profit before competitors can catch up. I was also trying to illustrate that slowed time to market can stifle good new product ideas within company boardrooms because they don't fit in with their production model. This is a problem that cuts across almost all manufacturing of any kind. I have seen it in the auto industry and the garment industry and the printing business and as an industrial designer. Timing new products to market and lowering the costs associated with product development is critical to success in manufacturing of many kinds from industrial machinery to toys. A doctor was talking about accelerated product development and lowering costs with regard to designer drugs on TV this morning. The pace of product development changed dramatically during WWII and has accelerated ever since. In high tech. industries it is the ability to utilize new technology that differentiates products. And we all know technological development is accelerating in all fields at an almost exponential rate. While the parameters for differentiating products may be different in the auto market and other markets the problem is the same. Chrysler can introduce 3 whole new lines of cars in the time it takes GM to introduce one new line and 2 new lines before Ford can introduce their new line. I'm not talking about minor styling changes but completely redesigned and reegineered cars. While the other auto companies are trying to catch up they can move 1-2 generations ahead of their competitors. They can also dabble in unusual products that are very profitable but don't have very big production runs because their costs for introduction are much lower. Their bottom line has proven it is a tremendous advantage. That is one of synergies that Mercedes expects to achieve with their buyout. I think the comparisons are valid although, you may differ. PHOTOMAN