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Strategies & Market Trends : Bowling Alleys and Tornadoes: G&K Hunting Grounds

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To: HeyRainier who wrote (16)7/14/1999 8:55:00 AM
From: Mike Buckley   of 153
 
Rainier,

Also, it seems to make sense to me that better-capitalized competitors, coming from "the top down" have better success at market penetration, rather than from "the bottom up," such as in the manner Vantive approached SEBL's market.

You're right, of course. But the reason the company has a larger market cap is because it also has hugely larger revenues. The sales growth came first and the market cap came afterward.

Those who know the industry from the inside (a viewpoint of which I'm very jealous) generally say that Siebel's success is the result of a superior sales/marketing machine.

Speaking of revenue growth, IDC says that in 1997 Siebel was the 24th largest cross-industry software apps company. In 1998 they were 8th largest. They are the fastest growing client-server applications company in the history of the business.

--Mike Buckley
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