Re: From Mercedes to Ford
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Posted by Bryan on 03:00:50 2009/06/26
In Reply to:
From Mercedes to Ford posted by Andra
If a company has the choice between selling to one customer at 100k or 10 customers at 10k while the combined profit margin remains the same no matter the choice, then only one customer at 100k is always preferred !
For the supply situation to come into play, then the customer needs alternative suppliers. E Lilly made the technology free to use for all other potential manufacturers/suppliers (family disease reason), so no patent/royalty fees etc, which is the key reason why Insulin came so fast to a big volume market at a fairly low price.
Therefore my concern to read that LCT plan is to build piglet capacity in-house and at the samw time postulate covering market with just 30-40k units per year becoming available. Demand is much higher than supply, so price will stay high for long if LCT plan for organic growth. (and nobody else comes up with something similar or better that does not infringe their patents)
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