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

To: tinkershaw who wrote (696)	2/3/2004 8:29:25 PM
From: Eric L	Respond to of 2955

Primates and Royalty Tinker, << Hold Royalty lightly and when the tornado looks like it will peter out, sell. Any other opinions regarding this particular rule of thumb? >> That rule of thumb hews rather closely to Moore's "Rule 6," in summary format where he lumps Kings and Princes under the same umbrella. It isn't my rule of thumb, and it is not exactly the way I interpret the substance that backs up "Rule 6," at least as it applies to Kings as opposed to Princes, and particularly descendant Princes. Personally I hold or have held (several) Kings (lightly), held/hold Princes occasionally, and Serfs seldom if at all. If I hold/held a Prince, typically I have held it either because I thought it had the capability to become a market leader - preferably with 2x or better market share than their next closest competitor, and have generally sold when I realized they weren't likely to become the market leader. As for holding Kings, I an inclined to follow the substance of Moore's advice and look for strong evidence of erosion in the King's market position or a reversal of fortune as to margins, cash flow, etc., as a signal to sell. I wouldn't necessarily or usually entertain selling a King simply because a tornado peters out, any more than I would consider selling a gorilla because the tornado peters out, since legitimate Kings typically enjoy an extended CAP and in general enjoy the same competitive clout and economies of scale as a gorilla. I would thus typically hold a King not only while they are a "rising star," but well into main street when they become a "cash cow," when they often produce better margins and generate better cash flow from operations than when they were in tornado growth. If the tornado has run its course and there is an inflection point between generational shifts of the product type that the King maintains market leadership in, I would be evaluating the probability of the current Kings positioning to maintain or enhance market share in the tornado that hopefully will follow when a new generation begins to replace the old. Best, - Eric -

To: tinkershaw who wrote (696)	2/4/2004 3:21:03 PM
From: Eric L	Respond to of 2955

MIPI Alliance Expansion Another Anti-Gorilla defense mechanism ... MIPI membership has expanded in the first wave from 4 companies to 39 including 5 of the top 6 handset manufacturers and and six of the top seven wireless IC manufacturers. Other companies include phone, hardware and software vendors that are looking to help define the technology building-blocks that will help create new phone features. "Our growing membership base sends a clear signal that the mobile industry supports the objectives of our organization. The diversity of the companies involved leaves little doubt that the MIPI Alliance is an open organization, and the specifications we produce will be widely adopted." - Tom Vial, MIPI Chairman of the Board - >> MIPI Alliance Grows Membership To 39 Companies *Intel And Motorola Join Board Of Directors; Enhance Openness Of MIPI's Interface Standards* naeurope.co.uk The Mobile Industry Processor Interface (MIPI) Alliance, the industry initiative established to define and promote open standards for interfaces to mobile application processors, announced today that the four founding members have been joined by 35 new members, including the addition of Intel and Motorola to the board of directors.... All MIPI members may participate in a launch meeting March 23-25 in Sophia Antipolis, France, which will include orientation sessions, board meetings, and initial working group meetings. More details about the meeting will be announced soon. MIPI working group members will begin collaborating immediately to develop new interface specifications for application processors and peripherals in mobile terminals, including camera, display, baseband modem and others. << Founding Members and New Board Members of MIPI Are: · ARM ¹ Intel Motorola Nokia ¹ ST Microelectronics ¹ Texas Instruments ¹ · ¹ Founder · New Adopter Members of MIPI Include: · Agilent Technologies ATI Technologies Atsana, Austriamicrosystems Cambridge Silicon Radio Dice Emblaze Semiconductor Ericsson Mobile Platform FASL LLC Icera Semiconductor Imagination Technologies IMEC Infineon Technologies Marvell International Mentor Graphics M-Systems National Semiconductor NeoMagic Nvidia Omnivision Philips Electronics, Renasas Technologies Samsung Electronics Seiko Epson Sendo SiemensAG Sony Ericsson Mobile Symbian Synaptics Toshiba Transchip Israel Research TTPCom Vimicro MIPI Alliance Website here: mipi.org MIPI Working Groups here: mipi.org The following MIPI Working Groups (WG) are currently defined: 1. Memory Interface 2. High-speed Multipoint Link (HML) 3. Camera 4. Software 5. Display 6. Compliance 7. Marketing 8. System Power Management The following Investigative Groups (IGs) are currently formed: 1. General Interfaces 2. Test and Debug 3. Security >> Intel and Motorola Join Nokia-backed Chip Alliance Eric Auchard New York Reuters February 4, 2004 forbes.com The four founding members of MIPI said they had formed the alliance to spur development of a wider range of wireless features and to guard against any one industry player dominating the new generation of phones. ... In contrast to the computer industry -- where hundreds of thousands of product developers are able to build products to run on a single basic standard dominated by Microsoft in software and Intel in hardware -- the mobile phone industry has hundreds of suppliers but few common product standards. << - Eric -