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Strategies & Market Trends : Gorilla Game Investing in the eWorld

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To: edkaiser who wrote (685)11/15/1999 12:29:00 PM
From: Teflon  Read Replies (1) of 1817
 
Thanks for the post, TDG (short for ThatDadGuy!), your thoughts are always welcome here though I certainly cannot place any guarantees on the responses.

The fist question that pops into my head on SWCM is: *how will they make money?* What is it about their system (is it proprietary in nature) that would allow for high switching costs and ultimately allow them to have pricing power in the Market, and leverage in new products over time? In some ways it reminds me of eMachines...you can control the entire segment of your market, but you're essentially giving away your product, regardless of how much of that market segment you control, how will you leverage that market position going forward? (I apologize ahead of time for any misuse of eMachines in this example...I am probably make a grossly unfounded generalization <vbg>.)

To me, on the face of it, email seems to be a commodity at best...please feel free to provided insights on these issues as well as any other item that you think would be helpful.

Teflon
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