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

To: GuinnessGuy who wrote (37090)	12/27/2000 5:18:54 PM
From: LindyBill	Respond to of 54805

Craig, RTFM means "Read the Field Manual" in the case, "The Gorilla Game", by Moore. I have read your posts and checked your profile, and you seem to be a person who is interested in emerging tech companies, at what we call the "Shiny Pebble" stage, rather than the Gorilla and Kings we spend our time on here.

To: GuinnessGuy who wrote (37090)	12/27/2000 7:15:49 PM
From: DownSouth	Read Replies (2) \| Respond to of 54805

Craig, "RTFM" means "Read the field manual", or words to that effect. Low market share is a potential advantage, not a rule for buying...by any means. There is much more involved here, especially in a simian match-up. I really do think you need to RTFM, Craig. You have failed to explain to me how a low market share is an advantage. If 10% is better than 90%, then 1% should be great, using your logic. Interesting that you don't believe pricing power is generally more in the hands of market leaders. That leads me to believe that you think the converse is true. That is, that the pricing power more belongs in the hands of those without dominant market share. I like to hear the logic behind that, 'cause frankly I don't get it. Did I say that? No, I did not. I said that there is much more to pricing power than marketshare. In fact, I could lower my price to the point where I am losing money, and dominate the marketshare. Where's the power in that? "Other factors are as important as market share, such as switching costs, barriers to entry, and market demand for the produts. Any one of these factors can control the pricing power of the dominant provider." Very true statement, but then again, these are factors that lead to market dominance in the first place, no? They do, but what lead to market dominance was not the question. The statement that you made was that the company with the dominant marketshare had the pricing power. It could be that dominant marketshare was achieved through low pricing. (Commodity market.) Specifically in terms of BRCD vs et al, you no longer have a "switching cost" component(due to BRCD's routing protocol becoming part of the open standard). So you can mix BRCD FC switches with other brands, or you can roll out the BRCD switches and roll in a competitor's? Serious question.