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

To: rel4490 who wrote (20454)	3/17/2000 4:31:00 PM
From: Mike Buckley	Respond to of 54805

rel4490, You pointed out on page 232 of the FM (and I found it on page 244 of the RFM) the following: "We always assume that a gorilla game investor will not be able to distinguish between kings and gorillas at the time of purchase and will indiscriminately buy candidates for either position." That's not to be confused with my point with regard to established Kings and Gorillas, that we need to have a very clear idea whether the company is in fact a King or a Gorilla. The quote you mentioned deals with the investor making decisions before a Gorilla is crowned. If you read the previous paragraph you'll realize that the authors are saying that though almost all tech plays present the possibility of a proprietary architecture taking control, in the end sometimes none really do. In those cases, it becomes at best a royaltly play in which execution becomes the reason a company ascends to the top of the competitors. The authors' context is that at that point in time, before the market for a particular product has fully evolved, we can't be absolutely certain whether the competitive environment will remain a gorilla play or will evolve into a royalty play. That's not the same as evaluating a company and trying to decide whether or not it has become a full-fledged Gorilla or King. Big difference. Make sense? -Mike Buckley