View Single Post
  #4 (permalink)  
Old 01-02-2004, 06:39 PM
Bluedog's Avatar
Bluedog Bluedog is offline
CC Member
Visit my Photo Gallery

 
Join Date: Jan 2003
Cobra Make, Engine: Once Owned CSX4803, CSX803 block, Keith Craft 468, Suspension by Tom Barnard, Built by Kris Kincaid
Posts: 161
Not Ranked     
Default RE: Innovation and Risk Taking

It's quite possible that the kirkham's could become the dominant leader in the Tier 1 cobra market. They have a huge competitive advantage by owning an offshore manufacturing facility and the ability to take advantage of economies of scale. In the high tech market, companies like Extreme, Foundry, and 3COM will pay Solectron or Flextronics 20%+ to outsource manufacturing which impacts their COS or OPEX (depending on how they do their accounting) giving competitors who own their own manufacturing facilities the ability to undercut their business.

Obviously, in order to drop the price to $40K, Kirkham would have to significantly increase their sales volume. Given what I recently witnessed...they can! At the end of the day, who would buy an ERA, Superformance, or CAV Shelby when you could have an "authentic looking" alloy cobra for the same dollars. It's a no brainer for me! Cheers to innovation and risk taking!!!

Bluedog
Reply With Quote