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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: slacker711 who wrote (2682)6/16/1999 10:59:00 PM
From: Tony Viola  Read Replies (1) of 54805
 
Slacker,

Re: EMC (I know that they are in the index, i was just wondering
if they are a king or a gorilla?)


EMC, at 32% market share vs. 25% for IBM, doesn't match any of the definitions below (Lindy Bill's def's borrowed from the book). However, I'd call them a lot more "Royal" than Compaq though. Market leader, and growing share, is about what you could say. BTW, gotta love those monkey examples from the book!! Back to EMC, probably too many big, tough competitors to become a gorilla in the foreseeable future.

GORILLA A company that controls it market because it has a
discontinuous innovation ,one that is not compatible with
existing systems. The market is in a hyper growth stage, and they
control the architecture. There is a high switching cost to using
some other company's product,

CHIMP A company that tried to become a gorilla but did not get
picked. IBM's OS2 is a prime example of a Chimp product. Apple
is a chimp

MONKEY A company that makes the gorilla's product and sells it
for less. AMD is Intel's monkey. Ascend and Fore are Cisco's
monkeys

KING The Market leader, properly with a two-times lead or better
over its closest competitor. If the lead shrinks too far, the king
becomes a prince, and we have a kingless market. Because they
lack architectural control, and because switching costs are low,
they cannot force competitors onto the defensive the way
Microsoft, Intel, or Cisco can. Compaq is a king. Seagate is a
king of hard drives.

PRINCE A market challenger, potential co-leader. Dell is a
prince to Compaq.

Tony
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