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

To: jerryriti who wrote (12080)	12/5/1999 2:27:00 PM
From: Mike Buckley	Respond to of 54805

But what if there is another means to the same end of control over the value chain? If a company controls the value chain, no matter how they achieve that end, would that qualify them for gorilla status? The more I think about that, the more I think it is a BIG "if." In that circumstance, when a member of the value chain attempts to compete with the big Kahuna, said Kahuna can't keep the new competitor off balance the way the gorilla that owns the proprietary architecture can. Lacking the ability to keep the new competitor off balance, the only defense the Kahuna has is a huge barrier to entry. If the barrier to entry is sufficiently high, in terms of needed capital or because it poses lack of interest because of a low return on capital, the King can take on similar characteristics of a Gorilla. And it might even have the same investment returns of a gorilla. But I would hope that all of us would be able to recognize the difference between its King-like and Gorilla-like characteristics, not because of the attention paid to that particular company but because of the discipline we must continue to impose on all future investments. Just my opinion. Love the discussion! --Mike Buckley