[sickoflibs]

RE :"Dell accepted the proposal because from a perspective of making money, it made sense: Dell’s revenues were unaffected and its profits improved significantly. On successive occasions, ASUSTeK came back and took over the motherboard, the assembly of the computer, the management of the supply chain and the design of the computer. In each case Dell accepted the proposal because from a perspective of making money, it made sense: Dell’s revenues were unaffected and its profits improved significantly. However, the next time ASUSTeK came back, it wasn’t to talk to Dell. It was to talk to Best Buy and other retailers to tell them that they could offer them their own brand or any brand PC for 20% lower cost. As The Innovator’s Prescription concludes:.....Bingo. One company gone, another has taken its place. There’s no stupidity in the story. The managers in both companies did exactly what business school professors and the best management consultants would tell them to do—improve profitability by focus on on those activities that are profitable and by getting out of activities that are less profitable."

In theory American companies cannot do this without the Federal governments permission, Federal Export Laws that regulates the control of shared information from US to other countries. ASUSTeK must have got some design information from Dell given the story above.

If the US government is too stingy with permission it can backfire too as companies go bankrupt, it's a worthwhile problem to try to correct.

[Freeport]

That’s not quite right if you are refering to ITAR? The ITAR regulations are for transfer of defence sensitive information. In the case of Dell, yes they were required to make a disclosure through channels, but once no defence sensitive information was determined to be included, out it goes.

So. To get back into the biz, one needs to come up with a way to pull 20% off ASUSTeK...

Figure that out, and YOU win.