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

To: Snowshoe who wrote (30991)	9/2/2000 11:49:43 PM
From: Thomas Mercer-Hursh	Read Replies (1) \| Respond to of 54805

At this point I think the company has to sacrifice revenue and profit to gain that market share. But the question is, what is going to keep them there if they get it? If WIND is being used today simply because they have a nicely packaged solution which is cheaper than doing it oneself or going elsewhere, then that is a nice position from which one can expect good growth, for a while anyway, but it is not a gorilla, since there is nothing to keep a company from bringing this piece back in-house or going elsewhere if the economics change. Where's the lock? Where's the DI? Is it there or not? Inquiring minds are curious...

To: Snowshoe who wrote (30991)	9/3/2000 8:44:46 AM
From: 100cfm	Read Replies (1) \| Respond to of 54805

WIND's primary competition is against in-house "roll-your-own" technology in companies with deep pockets (such as Sony), as opposed to head-to-head competition against equal rivals Being a Gorilla allows a company to charge a price for their products that allow fat NET margins. The above statement tells me that they are probably winning business on a low price bassis and not due to a proprietary lock on an IP or standard(that doesn't make them a bad company). Therefore they will most likely have to continue to spend large sums of money to a. stay ahead of the "In House" technical advancements and b. must do it cheaper then the In House staff in order to convince a company to go with an outside product, which will I believe keep pressure on net margins. Whereas the Gorilla's customers come to them because they either have little or no choice and hence must pay the price which allow for those wonderful upside EPS surprises. Although I have not studied WIND either, if I were an investor interested or invested in WIND I would be more concerned whether WIND could evolve into a Gorilla after a verfied Tornado more so then if it will or if it is in Tornado. 100