4 ms·
A good article, but not a new theory. Two schools of thought regarding optimal competitive strategy: (1) "Traditional" economic input/output model: first-mov
by indiejade 17y ago
A good article, but not a new theory.
Two schools of thought regarding optimal competitive strategy:
(1) "Traditional" economic input/output model: first-mover is a definite advantage, especially if being "first to market" allows a company to put up barriers to entry (or to influence any of the other "five forces") in the traditional economic model. Example would be patenting new technology.
(2) "Hypercompetitive" model: becoming more apparent in the digital age, and especially pertainent to web-only companies. Rather than "reacting" to moves of competitors, firms in a hypercompetitive market must predict and prepare for competitive moves from their rivals.
- inmygarage 17y agoSo then, given the current state of software patents (seems like they're difficult to attain and even more difficult to defend) how are you supposed to put up barriers to entry as a consumer web company? Are there examples of web/internet companies in the last 5-10 years that have succeeded by following #1?
- indiejade 17y agoThere's a difference between "first mover" and "first to market". First movers enter a market space first. First to market means that a company has launched an actual product within that market space. Startups all the time get funded with "just an idea," and even generate "buzz" or whatnot, but the real winners tend to be those who have their niche well-planned enough to effectively utilize those traditional market-force "forces" to their advantage. There are five of them: http://en.wikipedia.org/wiki/Five_forces http://en.wikipedia.org/wiki/Five_forces