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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Mike Buckley who wrote (6708)9/20/1999 8:17:00 PM
From: Mike Buckley  Read Replies (2) of 54805
 
Folks!

Focus, focus, focus!

Defining the games
Gorilla games involve competitors using proprietary technologies with high switching costs.

Royalty games involve competitors using non-proprietary technologies with low switching costs.

Characteristics of the dominant leaders
The dominant player of a gorilla game is the gorilla. In the case of enabling software and hardware technologies, the gorilla will usually dominate with a market share in excess of 60%. In the case of applications software, the gorilla's market share will often be in the 30% to 40% range, sometimes lower.

The dominant player of a royalty game is the king. A king's market share is twice the closest competitor.

Is it possible that a gorilla game will produce no gorilla?
Yes

Is it possible that a royalty game will produce no king?
Yes.

When a gorilla game produces no gorilla, does it become a royalty game?
If you think the answer is yes, or if you don't know, go back to the top of this post and read "defining the games."

Class is over. :)

--Mike Buckley
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