Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
In June 22 IBD in the Internet & Technology section, an article on Nortel compared Q1'99 to Q2'00 fiber optic gear market share.

Co. '99 '00
NT 28% 37%
LU 28% 19%
Fujitsu 13% 12%
Alcatel 10% 11%
Marconi 6% 10%


My question is: Does this show that NT is king of fiber optic gear, at least for now?

Thanks
bstricko




From our fantastic new Xerohyped FAQ.

King = Not a gorilla. (And it isn't going to become one, either). As LindyBill pointed out a king is "the Market leader, properly with a two-times lead or better over its closest competitor. If the lead shrinks too far, the king becomes a prince, and we have a kingless market. Because they lack architectural control, and because switching costs are low, they cannot force competitors onto the defensive the way Microsoft, Intel, or Cisco can. Seagate is a king of hard drives."

What all this means in practical terms is a King benefits from a higher economy of scale compared to its rivals.


So, from those figures no, just. A king needs to have at least twice the market share of it's nearest rival. So if Nortel had a 38% share it would. From your figures there are no Kings of the "fiber optic gear market" only Princes.



Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.