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

To: John Stichnoth who wrote (38947)	2/6/2001 5:53:52 AM
From: JAPG	Read Replies (2) \| Respond to of 54805

John, Warning: I am a WIND shareholder and I just know enough to sound dangerous!. Anyway here is my first attempt: Network type A. (customer installed base) -Here is where WIND has made and makes its revenues and profits -Network size: sigma( design win(i) x units installed(j)) -Here WIND doesn´t get the gorillahood grip. IMHO NEs are mild because products are invisible to users. Network type B. (rest of value chain) - Here is where WIND derives its potential gorillahood and where NEs are stronger. IMHO the 3 relevant parts of this network are: a)Companies that design products with Embedded OS b)Embedded OS programmers c)Third party software companies Network Effects on type B As more companies, programmers and third party developers are added, value to the network is augmented by: -More breadth of product offering from third parties -More often and better improvements on the core OS -More design wins Information Contagion phenomena causes that new companies, programmers and 3rd parties entering this market will sample opinions that favor WIND Note that even though Network Type A is not the direct source of Gorillahood for WIND, there a is bi-directional feedback between the 2 Networks. The larger Network A becomes, the more money WIND can use to strengthen key parts of the value chain (Network B), which in turn further increases size Network A. The NEs mentioned above are of the type that cause increasing returns and thus capable of creating a Gorilla. Also, WIND can further increase its chances of Gorillahood by working on NEE (Network Efficiency Effects) that enhance Network B. Furthermore, I believe that the strongest form of gorillahood occurs when strong NE´s act on Network Type A, which is not the case here. But WIND seems to have a very strong Network type B. All of the above IMHO Take care JAPG