Financial analysts take a short-term view when they demand industries to move to low cost countries

Why isn't it investigated if there is a competing company dominating in the same area or town when sensitive development are moved to low cost countries? Why isn't anyone looking into how resources are shared between companies via consultancy companies? And how the culture in the country is, if local students are more likely to be loyal to their friends than to a forreign company?

It seems it's only the hourly rate that is considered when moving research and development to low cost countries. It seems the financial market only think there is a price war. Have they heard about competing using features and functionality, industry knowledge and even quality? If a company don't have such a competitive advantage in their offer, then it's only a price war!

It is wellknown that competition is good for an industry when two companies are on the same level and located geographically close. They become more aware of the competition and can more quickly follow, adapt and surpass each other. It is similar to the evolution of the academic world. Since different Universities share results from research, they can copy each other, verify, complement and superseed each other. That's evolution!

In the industry such competition and drain of knowledge is of course not favourable to the leading company. Especially in industries where the income from patents are a valuable source of income, and where innovation is happening on top of the technical knowledge.

Now I think it's also interesting to note how experienced people who have been fired from the European company are being headhunted by the competing company's local organisation. All to secure as much of specialist competencies and competitive information as possible to be transfered to the low cost country (at least in the short time frame).

I find it amazing that the financial analysts who are demanding Euopean companies to fire people in Europe and move their development abroad don't consider and evaluate the risk of losing the competetive advantage. Products don't only have a price you know, they have a value too.... and that value can differ.