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

To: KY who wrote (20694)	3/19/2000 9:54:00 AM
From: gdichaz	Read Replies (2) \| Respond to of 54805

KY: One of the most perceptive ideas that Mike came up with on this thread is that an individual company may be a gorilla in one field, a king in another, a prince in another and a loser in another. (Hope I have the general idea right) Cisco is an example. Without question Cisco is the networking (broadly defined) gorilla. But in fiberoptics the situation is different. So far there seems to be no gorilla in fiberoptics. There is a king in fiberoptic components - JDSU. Nortel is probably a strong prince in overall fiberoptic networking systems with Lucent as a lesser prince. Cisco is coming up fast on the outside in this horserace and is probably either neck and neck with or has passed Lucent. The real world is a complicated place. The GG principles are a powerful tool of analysis. Application of those principles requires care. Perhaps the most interesting example of this is Microsoft. Without question Microsoft is the PC (or desktop) software gorilla. It is a king (probably) in server software. But Linux is challenging strongly - and Linux is not a company but an "open" system. And Sun Micro is a king in servers - at least high end servers. But wait, what is IBM? IBM is so big and wideranging that it almost defies GG analysis. And then there is GE, what is GE? Suggest that to try to deal with Cisco and Nortel for example it is necessary to look at the parts as well as the whole. But again in the real world, we buy a company not a piece of a company. So we must choose among mixtures in many cases. If the company is sufficiently small and concentrated we can pick a more "pure" gorilla or king or... The Q and JDSU may be examples of such a gorilla and a king. But wait, Mike pointed out early on that while the Q is a CDMA gorilla, it may not yet be a "wireless" gorilla. At some point, we choose the best based on what we know. Enough, (more than enough probably) Best. Cha2