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OK, I finally found time to finish the RB/RM book and am eager to be using the RM spreadsheet. So, last night I did an analysis of EMC Corp. As expected, all of the financials except for Flowie looked great. Although the Flowie is improving rather nicely over last year.

As far as brand goes, I followed the example of Cisco in the book as these are both companies where the people who need to know about them do even if the general public does not. This gave them a higher score for brand then I would have given them on my own. (But hey, if Cisco gets a higher score, so does EMC.)

When it comes to Monopoly status, I went to the Annual report and found who EMC sees as their competitors:

In the UNIX market, EMC competes primarily with Sun, IBM and Compaq. In the
Windows NT market, the Company competes primarily with Compaq. In the mainframe market, EMC competes primarily with
IBM and Hitachi.

So, I analyzed EMC versus Sun, IBM, and Compaq. Here's a condensed breakdown of the score:

Brand 5/7
Location 8/12
Direction 19/21
Monopoly 14/20
Interest 1/1
Total 47/60

This puts EMC as a solid 2nd Tier Rule Maker. If they keep improving their Flowie, they are destined for Rule Maker status.


If instead of analyzing EMC against a combined Sun, IBM and Compaq I analyze EMC against only Sun, the total score goes from 47 down to 39 as EMC's only significant financial advantage over Sun is net margins. In the other financial categories EMC and Sun are neck-and-neck.

This puts EMC as a 3rd Tier player struggling to get to 2nd Tier instead of a high 2nd Tier just shy of 1st Tier.

A little help anyone? I already own EMC and am not going to make any moves based on this analysis. I am just trying to get practice using the spreadsheet and the ranking system so that when I am looking for Rule Makers I have some confidence in the method.


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