Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : Microvision (MVIS) -- Ignore unavailable to you. Want to Upgrade?

To: wfrazee who wrote (1055)	4/29/1998 7:37:00 PM
From: HeyRainier	Read Replies (1) \| Respond to of 7721

Here's a little clip about the impacts of competition: One main concern is the importance of coming to market first. Quoting from Common Stocks and Uncommon Profits: "...There is a saying in the pharmaceutical industry that, when a truly worthwhile new drug is created, the company that gets in first takes and holds 60 percent of the market, thereby making by far the bulk of the profits. The next company to introduce a competitive version of the same product gets perhaps 25 percent of the market and makes moderate profits. The next three companies to arrive divide perhaps 10 percent to 15 percent of the market and earn meager profits. Any further entrants usually find themselves in a quite unhappy position. A trend toward the substitution of generic for trade names may or may not upset these ratios, and in any case there cannot be said to be an exact formula applicable to other industries; nevertheless, the concept behind them should be kept in mind when an investor attempts to appraise which companies have a natural advantage in regard to profitability and which do not..." If MVIS gets to their key markets first, then they get the majority of the rewards. Just look at how the fight between AMZN and BKS has turned out. Despite BKS being better capitalized (I assume), AMZN's first entry to market gave them a distinct advantage, and has allowed them to maintain the majority of the market share. Regards, Rainier