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

To: Apollo who wrote (11731)	12/2/1999 10:10:00 AM
From: mauser96	Read Replies (1) \| Respond to of 54805

Stan--You're probably right about JDSU having sufficient brand recognition among those that count. However, these corporate buyers are presumably knowledgeable enough about the product that brand counts for less. In the early days of the PC it was mainly individuals buying them. This was true to a large extent inside corporations too (the MIS people hated the idea of the PC because it took them out of control)This gave a brand more power, especially because it was linked with the best brand of all, IBM. JDSU does dominate it's field, but it's customers have learned from the example of companies like MSFT and will want at least some degree of second sourcing. The fact that there are a handful of JDSU customers rather than the millions of PC customers gives the JDSU customers more power. If you were in a position of power at a company that used JDSU products would you bet your job on one supplier if you could avoid it? Domination isn't the same as gorilla. Of course any comparison can be carried too far, but I suspect the circumstances that allowed INTC to become a gorilla were unique. Also, as I remember, it's competitors were unusually ineffective, unwilling to take the gamble that the PC was for real. Intel was willing to bet the company on it. It appears that JDSU has what it needs to be a King (good enough for me) but I doubt that it will be a gorilla. Look at present gorillas- most are quite close to the end user. JFSU is several steps away. . One worry about JDSU is industry wide. Fiber is being laid down at a rate faster than it's being lit. This can't go on forever(but maybe long enough for us to make a good bit of money<<gg>>) regards Luke