Or do as Lego did, swoop in and patent key parts, refuse to license them and stifle innovation while executing just well enough in the sector for years to come.

Or do as Lego did, swoop in and patent key parts, refuse to license them and stifle innovation while executing just well enough in the sector for years to come. When your patent expires, try design patents, trademarks and copyrights to sue competitors (often unsuccessfully in court, but that doesn't matter) rather than innovating and bringing down prices to competitive levels. YMMV.