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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: garyx who wrote (16637)1/27/2000 5:46:00 PM
From: StockHawk  Read Replies (1) of 54805
 
>>I thought that during the tornado you should be lowering prices, not raising them...
Is this true or not?
<<

True.

From "Inside the Tornado" (1999 paperback ed.) pg. 81-85.

"In a Tornado HP showed us there are three critical priorities:

1. Just ship.
2. Extend distribution channels.
3. Drive to the next lower price."

and

"the vendor who can first hit the new lower strategic price point gets first crack at a whole new customer base...if the leader snubs the new price point, the the market will go with the clone...The lesson may be clear, but heeding it can be another matter. Fat margins are a habit that is hard to kick. IBM couldn't kick it when Compaq underpriced them, nor could Compaq when Dell underpriced them."

StockHawk
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