On Sun, 13 Jun 2004 07:05:25 GMT, "Mike Jacoubowsky"
<
[email protected]> wrote:
>Peter: Why would you say that Shimano is "dumping" product
>to OEs? Shimano's probably the most profitable company in
>the bike biz, and you don't get there by selling the
>majority of your product at or below cost (as would be the
>case if they were "dumping").
Dumping is not selling usually selling below cost. When you
sell in your home market at a lower price than abroad that's
dumping too. If a very high percentage of your sales is
abroad, that may become your market.
Selling to different prices to non competing markets is ok.
OEM is a different market than retail. Drug companies sell a
drug to a hospital at a different price than to a pharmacy.
They also sell different price in different countries.
Shimano is a more efficient producer than Campagnolo.
Shimano's volume is much larger. The scale of size of their
machinery and automation requires that they have high volume
sales. I'd guess that Campy cannot even produce enough to
sell OEM if they wanted to. Shimano's development,
marketing, and R&D cost per unit is much less. than Campy.
Component boutique vs Component supermarket.