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

To: Mike Buckley who wrote (6795)	9/22/1999 8:46:00 AM
From: voop	Read Replies (1) \| Respond to of 54805

You are right, I was thinking incorrectly about CTRX being a thin server application software but it really enabler after reviewing some posts. I was surprised by " The first is that we would think of companies that have no chance of becoming a gorilla. " Can not chimps with proprietary technologies not develop a food chain and enter a tornado, etc and assume gorilla status. I lent my FM to a day trading friend but I thought there were examples of for instance CSCO on even terms with the competition early on until their routers dominated the hubs. Always appreciate your clarifications Voop

To: Mike Buckley who wrote (6795)	9/22/1999 9:45:00 AM
From: Uncle Frank	Read Replies (2) \| Respond to of 54805

>> If I'm right that the stock of kings does appreciate more, it probably comes down to how long the king's stock appreciates before hitting the wall, which is the ultimate risk of any king. If that's the essence of their point, the story of the turtle and the hare might be analagous to niche-dominating chimps and kings, respectively. One of my favorite sections of the fm is the description of what happens to Chimps when they get too ambitious (as most all of them do): So when a chimp attacks the gorilla, everyone in the marketplace - the customers, the service providers, the complementary products providers - all have the same response: Shoot the chimp!. Hold Kings & Princes lightly, and watch out for buckshot if you're holding Chimps <g>. uf

To: Mike Buckley who wrote (6795)	9/22/1999 11:26:00 AM
From: StockHawk	Read Replies (2) \| Respond to of 54805

>"After gorillas, the next most desirable holds are application software chimps if they have secured at least one dominant position in a niche market." If it's not too much trouble, could you post the page number so I can review that in context. < Mike, I did post the page number. From that post: >It seems that some people would classify Kings as the next most desirable hold followed by Princes. However, page 184 of the manual states "After gorillas, the next most desirable holds are application software chimps if they have secured at least one dominant position in a niche market." The idea here, I believe, is that proprietary architecture is so powerful that significant benefits can accure, even to a Chimp.< The key here is the pursuit of the niche market. As explained on page 59 a Chimp is a company that tried to become a Gorilla but just did not get picked. Nevertheless they invested heavily in their own architecture. They have two choices. Choice 1 is to attack the Gorilla. The outcome is that quoted by Uncle Frank in his post: >So when a chimp attacks the gorilla, everyone in the marketplace - the customers, the service providers, the complementary products providers - all have the same response: Shoot the chimp!.< The second choice is to exploit their niche, because in the niche they become a "local gorilla" (again page 59). As stated on page 61 "Their installed base is eminently defensible inside the niches - indeed, if they execute well, virtually unassailable - plus they have interesting opportunities in the broader market if the gorilla should ever stumble." Moving to page 185 it is noted again that Kings do not have proprietary architectural control. "This means that the market is not biased to keep them in power the way it is biased to keep gorillas or niche-based chimps in power." (keep in mind that this refers to application software chimps NOT enabling technology chimps which should be shunned) I would suggest - evidenced by the name of this thread and the portfolio attached to it - that most people who read the manual conclude that gorillas and kings are the stocks to own. Chimps are passed over or even disdained. I raise the issue because I do not think that was the book's intention, and I thought it might make for some lively discussion. StockHawk