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

To: voop who wrote (11255)	11/27/1999 5:47:00 PM
From: DownSouth	Read Replies (1) \| Respond to of 54805

Voop, perhaps someone will indulge you and answer your questions, but until you RTFM you are not going to get it. You have been hear a long time, voop. Go to Barnes and Noble and BTFM!! We need you on our wave length! Galahad

To: voop who wrote (11255)	11/27/1999 11:23:00 PM
From: pala	Read Replies (1) \| Respond to of 54805

<<Confused about 1) Is the company putting all of its eggs in one basket (one market segment)? Not sure why yes would be good, perhaps we are victims of double negatives?>> Voop; This is the prefered Chasm Crossing strategy. Attacking one very carefully chosen market, and concentrating on that market. Rambus used the video game market for instance. The interesting thing about this is that some "one trick ponies" may be much more, once across the chasm, and on to the next pin. Enjoy Doug

To: voop who wrote (11255)	11/28/1999 1:11:00 AM
From: Mike Buckley	Read Replies (1) \| Respond to of 54805

voop (and all), For the record, I have not read all of the revised manual. I've tried (successfully or not) to find the differences between the original and the revised version, but look forward to sitting down with a thorough reading of the entire book. I own Chasm and have not yet read it. Right or wrong, it's more important that I fully understand how Tornado might be helpful to me before going on (back) to Chasm. Since Tornado is not required reading in our folder, there's no need to be apologetic about your questions. However, don't be surprised if I begin to exercise influence that it become requried reading. :) Confused about 1) Is the company putting all of its eggs in one basket (one market segment)? Not sure why yes would be good,... To expand on pala great answer to that, I'd like to explain why it's an important chasm-crossing strategy to put all the eggs in one's basket. The idea is dominate a market segment. By having eggs in many baskets, it is unlikely that any segment will be dominated and the company will lose out during the tornado to those that did dominate one or two segments. There are other ramifications you'll enjoy once you get the book. :) How do companies plan total revenue, why would they limit themselves, whom does the planning and over what timeframe? Executive management teams worth their pay always plan the revenue. Without instights into the revenue and the expected gross margins, they can't plan the costs. Without planning the costs, they can't plan the cash-flow and might run out of money. The reason a company must limit its revenue is because it has limited financial and human resources. It would be a great problem to have, but it is indeed possible to have too much revenue if planning hasn't been in place or if planning can't be sufficiently revised in time to meet the needs of customers signing on. Five-year plans used to be prevalent but these days I'm reading more about one-year plans and less specific business plans reaching out no more than three years. Now that we're operating on Internet time, five years is a few eternities. :) The specific gorilla-gaming reason that a company addresses revenue as it approaches each pin in the bowling alley is because it wants to dominate that pin (market segment) by obtaining at least 40% of the segment's total market. By example, a company that plans $100 million in total revenue next year would probably plan no more than 60% of it -- $60 million --coming from one segment. $60 million is 40% of $150 million, indicating that its business plan would not allow it to dominate a segment whose total market is greater than $150 million next year. In that event, it would be prudent to go after a market segment with a total potential of $100 million instead of one whose total potential was $300 million. Make sense? I wrote: In other words, is that market segment truly a head bowling pin that knocks over one or two other bowling pins when it falls? You asked: Can you help us determine whether a bowling pin is a 1, 4 or 7? It's been too long since you've been bowling. The head pin is #1. :) does one need a basket of stocks if hunting for enablers? Yes, if there is a basket of competitors available before the gorilla has been determined. The great likelihood is that you won't be offered the opportunity of a basket of enabling stocks that you will of applications stocks. It's been difficult for me to think of more than two enabling competitors in most markets, though that's not always the case. Quite often there is only one reasonable choice, Gemstar and Qualcomm being examples in my opinion. In that case, the only question at the start of the tornado is whether or not it will produce a gorilla. --Mike Buckley