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Technology Stocks : Gorilla Game

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To: t36 who wrote (76)4/11/1998 12:40:00 AM
From: Mark Brophy   of 387
 
The book is obsolete.

The premise of gorilla formation is a proprietary advantage with high switching costs. Customers have become accustomed to the scam and no longer fall for it. A good example of this is the recent TCI set-top box contract that was split between Sun and Microsoft.

Since customers have become smarter, Moore found it very difficult to identify any new gorillas other than I2 and Manugistics. Despite recent stock market reaction to the contrary, he specifically ruled out Yahoo. All they really do is produce content like a magazine or newspaper. There are no entry barriers or switching costs, so they will constantly be up against fierce competition.
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