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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: GuinnessGuy who wrote (37080)	12/27/2000 12:34:22 PM
From: DownSouth	Read Replies (1) of 54805

Craig, if you have RTFM, read it again. You're not getting it. Taking your statement to the extreme, one would buy the company with a 1% marketshare rather than the company with a 99% marketshare because the former has more growth potential. I don't think so. BRCD earned its position by innovating on the poor FC standards and creating the most capable, though proprietary, FC switch on the market. The OEM's decided to use BRCD switches because they did the job first and best when FC switching was needed. They did read the book. They focused on filling demand of their customers. No, I would not agree that "the higher the market share a company has, the more pricing power it has and the less it has to worry about customer service". Other factors are as important as market share, such as switching costs, barriers to entry, and market demand for the produts. Any one of these factors can control the pricing power of the dominant provider.

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