People really should read Michael Porter's Competitive Strategy: http://astore.amazon.com/hypernumbersc-20/detail/0684841487 http://astore.amazon.com/hypernumb

People really should read Michael Porter's Competitive Strategy: http://astore.amazon.com/hypernumbersc-20/detail/0684841487 http://astore.amazon.com/hypernumbersc-20/detail/0684841487 He points out that pricing power in a supplier relationship is held by whichever side would find it easier to integrate into the other ones space. So Apple vs App Makers, Facebook vs in-Facebook games, Twitter vs Twitter apps... There can be a healthy acquisition route for successful startups in a supplier relationship - but only for the first one of its kind.