The Motley Fool Discussion Boards

Previous Page

Investing Books / Gorilla Game, The

URL:  https://boards.fool.com/phil-determining-the-strength-of-a-value-chain-is-12805074.aspx

Subject:  Re: Value Chain Analysis? Date:  6/26/2000  10:28 PM
Author:  MikeBuckley Number:  3184 of 8810

Phil,

Determining the strength of a value chain is entirely subjective but well worth looking at. I think the best way to appreciate the strength of a company's value chain or the potential of a currently weak chain that might become stronger over time is to first examine the value chains of Intel, Cisco and/or Microsoft. Once you understand how the strongest of the strong ones have worked so well for so long, you begin to get a good idea about how value chains currently forming inure to the gorilla's benefit.

I don't remember where I read it in the book, but I think of the value chain defined as the following: the customers, vendors and third-party providers who do everything reasonably possible to ensure the success of the gorilla's product because their own success depends on the success of the gorilla.

For a more thorough discussion of how the valuation chain fosters gorilla power, check out pages 48-51 in the revised version of the book.

Hope this helps.

--Mike Buckley
Copyright 1996-2022 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us