Posted by: donmihaihai | May 26, 2015

Sarine 26 May 2015

Words like “unmatched”, “most cost effective”, “worldwide leader” and “de facto worldwide standard” is nothing without the figure to back it up. How can an equipment seller enjoy such profitability while their customers are all having profitability issue.

Domination is the word. The result of this domination is the kind of profitability where many companies can only dream of. But it doesn’t mean that every new product out of the lab will resulted in same domination or every push to a new field will resulted in domination.

Sarine Light, Sarine Loupe, Sarine Profile & Allegro, all exciting but will these new field resulted in same kind of domination? I don’t know and it is too early to say. Retail segment is bigger with filled with retail chain/brand. Tiffany is Tiffany not because it has a Tiffany profile. Why should Tiffany want to share its profit with another company? Unless it is force to as in every competitor is using it and customer demand it. It is exciting if Sarine get a stronghold in this segment but the landscape is different.

Sarine current field is such so good that every serious manufacturer needs Sarine equipment if it want to compete. I won’t bet against Sarine equipment selling in black market if the country close the door to Sarine.

If Sarine is so good why is it doing so badly recently? Where can you hide when you dominated the industry and the industry is doing badly? Consistency is a dirty word and it is not profitability. Profitability over consistency. Not concern on the drop in profit but concern about what they are not doing during bad times. Sarine must not cut down on R&D. Must not stop hiring good peoples. Must not slow down the push toward retail segment.

Capacity to suffer. Tom Russo said it and it hurt current profitability. But current profitability is not everything. Market domination is.

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