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

To: sditto who wrote (27886)	7/14/2000 12:48:07 AM
From: DownSouth	Respond to of 54805

Well said, sditto.

To: sditto who wrote (27886)	7/14/2000 12:49:18 AM
From: solihull	Read Replies (1) \| Respond to of 54805

ditto, I enjoyed your post on controlling an architecture by gradually flexing gorilla power once it is embedded and the value chain has formed. You said: <<if the Gorilla started with an important part of the architecture (I might classify CDMA as the spine) it can use this powerful position to direct the architecture in new directions to meet new business needs. Importantly, this can happen even if parts of the architecture are open and non-proprietary>> Help me here. Windows is open architecture, but the code is not. Much like one can mix any liquor with Coke, but the recipe for Coke is secret, right? Ok, vendors with a license may implement Qualcomm's proprietary technology into motherboards, modems, ASICs, etc., but the blue prints/underlying technology are secret. What the Chinese did recently was akin to a country telling Coca Cola, "We'll let you export Coke to our country, but only if you give us the recipe to make it here ourselves." So far, so good. I'm being overly simplistic, but let's pretend for a second Dr. Jacobs took the Chinese by surprise and said, "Fine, no problem. We will share with you all of the intellectual property you need. After all, we consider you our partner... I'll have my CTO begin working with your ministers and engineers immediately. (By the way, don’t EVER let one of your ministers miss another meeting…) Let's get this CDMA2000 show on the road. In the meantime, is there anything else we can do to help speed-up the implementation process?" This would have made their heads spin. They wouldn't know what to do. Meanwhile, this arrangement could be dragged out for months and months (oh, you meant THOSE blue prints, I'm sorry, we completely misunderstood. We'll get on it right away. BTW, since you're on the phone, where's that royalty check?...) good news reins, the valuation soars, CDMA has more time to prove its superiority, competing platforms capitulate and etcetera. Is it not best to use double-speak with those who employ it as their native language? Shouldn't we first get our customers hooked on our product before improving it and raising the prices? Is there a law that says the deal we strike with one country has to be SAME with everyone? (I understand Mr. Gates wasn't initially overly concerned with piracy issues in China because he saw it as a way to make Windows flourish – and it has...Now he can tighten the bolts and has...Mr. Gates has effectively out-Chinesed the Chinese.) What I'm trying to say is Qualcomm may need to use different negotiating tactics with different cultures. How many Chinese senior managers or advisors do they have? Oddly, Americans believe their way (not just technology) of doing things is the best. They can be deemed arrogant, believe it or not. But if it's 'your way or the highway,' some countries may just take the highway (to their detriment of course). OTOH, maybe Dr. Jacobs loses all credibility and respect if he doesn't draw the line and enforce it, Yuen style. justwondering@eatyourcdmawithmustardorelse.com