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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Mike Buckley who wrote (6708)	9/20/1999 8:17:00 PM
From: Mike Buckley	Read Replies (2) \| Respond to of 54805

Folks! Focus, focus, focus! Defining the games Gorilla games involve competitors using proprietary technologies with high switching costs. Royalty games involve competitors using non-proprietary technologies with low switching costs. Characteristics of the dominant leaders The dominant player of a gorilla game is the gorilla. In the case of enabling software and hardware technologies, the gorilla will usually dominate with a market share in excess of 60%. In the case of applications software, the gorilla's market share will often be in the 30% to 40% range, sometimes lower. The dominant player of a royalty game is the king. A king's market share is twice the closest competitor. Is it possible that a gorilla game will produce no gorilla? Yes Is it possible that a royalty game will produce no king? Yes. When a gorilla game produces no gorilla, does it become a royalty game? If you think the answer is yes, or if you don't know, go back to the top of this post and read "defining the games." Class is over. :) --Mike Buckley

To: Mike Buckley who wrote (6708)	9/20/1999 8:54:00 PM
From: rel4490	Read Replies (1) \| Respond to of 54805

Mike, Thanks for the definitions in your subsequent post. The question I am trying to answer is in fact whether or not GMST has the proprietary technology necessary for a gorilla game to develop. Stew thinks they do. From your previous replies, I assume you think so also. This means that you are both playing down the importance of the pending litigation, viewing it as only a step in the negotiating process for a license As far a switching costs are concerned, they may be small from the consumer's perspective, i.e., the cost of a TV or VCR.