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Strategies & Market Trends : Gorilla and King Portfolio Candidates
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To: Thomas Mercer-Hursh who wrote (30997)9/3/2000 5:49:25 AM
From: Snowshoe  Read Replies (1) of 54805
 
>>Where's the lock?<<

The lock is high switching costs, which are a two-edged sword. On the one hand, you want to lock in those customers. But how do you get them past the hurdle of switching to your standardized product? To help overcome this, WIND revised its pricing structure in early 1999 to increase market share. Several months later the company announced a merger with its main head-to-head competitor, which greatly reduced the option of switching away from WIND.
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