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I'm trying to run the RM numbers using the Foolish spreadsheet but I don't know who to pick as Softy's competitor.

Is any company significant in terms of what's needed for the spreadsheet? Any ideas?


Yes, choosing an appropriate competitor definitely has a significant influence on the scoring.

There are 2 ways to do this:

The first way is to evaluate Softy versus a variety of competitors, such as AOL, Sun Micro, and IBM. Then, average all of the Monopoly Status scores to come up with a final score. This method gives a total score that is representative of Softy's position in the industry.

The second way is to just pick one competitor that you view as Microsoft's foremost competitor. Admittedly, this is a tough choice. The purpose of this method would be if you're trying to decide which of 2 companies to buy within a single industry. If you know you want to buy either Sun or 'Soft, just pit the two against one another, and see which one comes out on top. Keep in mind, however, that the resulting total scores will not be as indicative of a company's position as the scores using the first method.

Eventually, we'll have a spreadsheet page that explains all this stuff. Until then, I hope this helps.

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