Colin Barry

Boeing (BSSE, Monday, Week 8)


Unwary outsourcing sets in motion forces that lead to the disruptive liquidation of your firm's business model.
And it looks great for a while, because ROIC keeps going up while you're getting rid of assets. Harry Stonecipher was a hero to the capital markets, until Spirit Aerosystems emerged from Boeing's spun off Wichita plant and the Dreamliner came in 3.5 years late and $15B over budget.

Dell: outsources everything to ASUSTeK, one function at a time...
At every step, margins improve and RONA/ROIC gets better. Once ASUSTeK does everything for Dell, they call Best Buy and offer to sell them Dells for 20% cheaper. And without the Dell logo.