Thank you for the compliments Scott.
> NOVL has/had a ery valuable asset, majority market share with a
> proprietary product,
<<<I'm curious ... what do you mea n by "proprietary" here? Owned? Microsoft "owns" NT ... so NT is also proprietary? They use SMB as their primary file protocol ... is is "proprietary" also? I know that this is also mis-communicated often ... what was your definition intended toward? (Very curious here ... this is a very common statement, but I'm not sure why ...)<<<
What I mean by proprietary is...,,, well,,, proprietary. I know that may seem like a bad word in teh new Internet era, but investors want to see proprietary products. A propietary product combined with a niche and majority market share effectively locks the compeition out and locks the profit margins in. The only way to defeat this combo is to effect a paradigmn shift that obsolecses the proprietary product. This can only be accomplished by catching the big man off guard, as the market thought MSFT was caught off guard. Well if you are swift and nimble, you can maintim your proprietary advantage and your high margins by temporarily sacrificing margin for market share through extending your propreitary product through open standards until you have recouped enough mind/market share to effectively resestablish your proprietary lock on your market - post paradgim shift. If you notice, that is exactly what MSFT is doning right now. NSCP, endowed with very bright mgmt. is taking painful steps to blsock the dominacne of the proprietary regime to the point that they can develop a proprietary technology in which they can effectively construct potent barriers to entry within thier market. You see, NOVL's mgmt. has allowed MSFT and the paradigm shift known as the Internet to obselesce thier mainstay products (at least in teh eyes of the public, which is where ti counts). Your companies job is to obselesce that of MSFT, and ride the wave of new paradigm shift (like NSCP) until you are able to re-establish significant barriers to entry to your core,profitable markets.
Yes, most of MSFT's products are proprietary, that is why MSFT is on top. You don't see much cannabalizing of MSFT technology.
RCM
rcmfinancial.com |
