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Investment decisions aren't as clear cut as the original commenter made it seem. The company was spectacularly successful at raising capital, became one of the
by fludlight 12y ago
Investment decisions aren't as clear cut as the original commenter made it seem. The company was spectacularly successful at raising capital, became one of the lowest cost producers in the world, but still went bankrupt due to massive overcapacity in the market. Their strategy was to use economies of scale to manufacture a $5 product for $1. Unfortunately everyone else had the same idea, forcing a minor pivot: make something for $1, sell it for 80 cents, and hope the competition goes bankrupt first.
FWIW, I think the same thing happened with hard drive manufacturing 30 years ago.
http://www.themonthly.com.au/eric-knight-shi-zhengrong-sun-king-eric-knight-3363 http://www.themonthly.com.au/eric-knight-shi-zhengrong-sun-k...
http://en.wikipedia.org/wiki/Shi_Zhengrong http://en.wikipedia.org/wiki/Shi_Zhengrong
- prawn 12y agoThanks for the info and links.