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


To: joancee who wrote (39177)2/11/2001 11:56:39 PM
From: Mike Buckley  Read Replies (2) | Respond to of 54805
 
Thirdly, there are what I call groove-in effects tied to customers and consumers. Basically, this means that the more I use a product, the more I'm familiar with that product, the more convenient it gets for me. I use Microsoft Word. There might be a better program out there, but I know all the tricks with Word that I mastered over several years and I am very reluctant to give that up to start over with another product.

I call that a cost of switching. And given my proclivity toward understanding technology at the level of the end user, it's a really high cost. :)

Evidence: Just this weekend my wife switched from using personal finance software Manage Your Money (MYM) to Intuit's Quicken. Was it that MYM upgrades stopped being made years ago? Nah. Was it that we figured now is a good time to stop using a DOS version and start using a Windows version? Nah. Was it that MYM isn't Y2k-compliant? Well sort of. Just this week we learned that the reason Check Free wasn't working is because of the Y2k issue. It worked fine for the last 13 months. Go figure. So we had to learn a new software program to be able to pay our bills.

--Mike Buckley

P. S. Id is gonna have fun with this.



To: joancee who wrote (39177)2/12/2001 11:26:26 AM
From: Judith Williams  Respond to of 54805
 
Joancee--

Thanks for the Arthur link. I am a big fan.

His three components--scale, network effects, grove-in--fit neatly into our framework. "Grove-in" may be equivalent to switching costs, as Mike suggests, but it's a catchy label, no?

--Judith



To: joancee who wrote (39177)2/12/2001 2:11:39 PM
From: JAPG  Respond to of 54805
 
Joancee,

Brian Athur. Yep, he is the one that brought us back "increasing returns" on which the Gorilla Game is based.

JAPG