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

To: Bahama who wrote (702)	3/7/1999 11:24:00 AM
From: Mike Buckley	Respond to of 54805

Bahama, I'm not sure I follow since "high-end" by definition isn't commoditizable (is that a word? it is now:o)) I'm not sure I can pronounce that word, but I can probably type it if I'm really careful! :) I disagree that high-end products can't be commoditized. They very often can't, but if enough competition enters into the market the pricing wars and production efficiencies can result in a commodity. One example is hardware servers. They are the high end of the PC computing hardware but they have become more commoditized than when they first came out. (I don't know enough about them to know if they are a true commodity yet.) because high-end is a small percentage of the market. Yes, but if the high-end market is in itself large enough to attract enough competition, it can in time become commoditized, especially if a new technology makes it easier for a new competitor to challenge the gorilla. Did your friend elaborate any, perhaps suggesting companies and product scenarios? Yes, he did. But I wasn't familiar with the example he used and didn't follow up about it. Even so, he wasn't suggesting that EMC would go the way of his example. He was merely saying that it has happened in the past and that it's not inconceivable that it can't happen again. Though I pay a lot of attention to him, I didn't sell my EMC stock. :) --Mike Buckley