Business Services Industry
San Jose Mercury News, Calif., Silicon Street Column.(Originated from San Jose Mercury News, Calif.)
Knight Ridder/Tribune Business News, November, 1997 by Lashinsky, Adam
Nov. 10--Every tech upstart's nightmare is an 800-pound gorilla entering its market.
Such an entry is guaranteed to cause a stir. Just consider the effect Microsoft Corp.'s (Nasdaq, MSFT) browser has had on Netscape Communications Corp. (Nasdaq, NSCP), whose value has been slashed roughly in half since late last year.
A similar fate befell a smaller company, Polycom Inc. (Nasdaq, PLCM) in San Jose, when U.S. Robotics Corp., now a part of 3Com Corp. (Nasdaq, COMS), decided to start from scratch a conference-phone product line to compete with Polycom, the market leader.
Polycom's stock, valued at $9 in its May 1996 initial public offering, rose above $10 and then plummeted to $3 earlier this year when U.S. Robotics started selling...
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