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

To: mauser96 who wrote (27862)	7/13/2000 4:58:54 PM
From: Jacob Snyder	Read Replies (1) \| Respond to of 54805

re: The last thing companies like Nokia want now is a "QCOM Inside", but that could change. No, it won't change. Nokia wants to be the brand consumers recognise in cellphones, now and forever. In their nightmares, they imagine becoming a commodity "boxmaker" (and a very small box, at that) for QCOM chips. They are aware that margins for Wintel are different than for Compaq, Dell, (or the PC divisions of IBM or HWP). The "Intel Inside" marketing campaign is tangible evidence of Intel's gorilla status. They couldn't do it unless they totally dominated their value chain, upstream and downstream. And the fact that QCOM can't do it (yet?) means their power is not yet consolidated within their value chain. Intel has gotten into power struggles with Compaq repeatedly, and won in the end, every time. QCOM will have to do the same thing with Nokia.