pure play


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Pure play

A company involved in only one line of business.

Pure Play

A company that works exclusively in a single industry. A pure play company can carry higher risks than diversified companies, but some, especially start-ups, can only afford to be pure plays for the first few years of operation. On the other hand, if a pure play's products are successful in its industry over a long period of time, it may be a stable investment.

pure play

An investment that is concentrated in a particular industry or operation. An investor who believes that snowmobiles are the wave of the future will search for a pure play in snowmobiles. In other words, the investor seeks out a company that does nothing other than manufacture and sell snowmobiles. Likewise, Maytag Corporation is more of a pure play in household appliances than is General Electric, even though General Electric has a larger share of the appliance market than Maytag. Reason: General Electric generates much of its revenues from its other operations.
References in periodicals archive ?
But while she contends that home furnishings has the potential to capture a significant portion of the consumer dollars spent on the Web, in part because the off-line home furnishings market is fragmented and time-consuming to shop, Hale is quick to add that it might take years for sites to achieve this potential, and that pure plays face numerous obstacles.