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So what happens if a startup competes with existing huge companies. For example, my startup create a new auto ml platform. I am competing with Google AutoML an

So what happens if a startup competes with existing huge companies. For example, my startup create a new auto ml platform. I am competing with Google AutoML and azure auto ML (at least feature-wise). In this case: 1) I know who are the customers. I.e. Google/Azure customers. 2) I know what I am selling - auto ml. 3) I know how to make money. So in this case, I am not a startup? My point is that for some reason founders love uncertainity.

nostrademons 7y ago
If they compete on the big company's territory, the most likely outcome is that they die. Big companies have more resources to deploy. If you're competing for the exact same customers, on the same featureset, with the same business model, there's usually little reason for the customer to choose the startup over the big company. Any new features can be reimplemented by the big company; any price reductions can be matched. If you've identified a particular customer segment that has needs that aren't being served and can't easily be served without rearchitecting the big company's product or business model, then you can survive. But the process of doing that means answering "#1 Who are your customers?" and "#2 What are you selling?", which makes for a startup. Once you've answered that you have a small business (if the niche is static and small) or a new fast-grower (if the niche is a result of a change of the environment that affects a large number of customers).
- streetcat1 7y ago
  Have you worked in the R&D department of a big company? Did Nokia match Apple? Why not? Was it a resource problem? Did MS matched Android? Why not?. I mean the biggest OS company in the world has no mobile OS? Did IBM matched Dec? Have you seen a big company do that? If yes, can you give a concrete example, where a big company killed a startup? Do you know what motivates big company R&D decisions?
  - nostrademons 7y ago
    I have worked in the R&D department of a big company (Google Search). I'm currently a startup founder. There is no way in hell I would want to compete directly with Google on terrain they are dominant in. Several startups have tried and failed (Cuil, Blekko), as well as one big company (Bing) and one that's become a successful niche business (DDG, occupying the niche of privacy-conscious searchers that's significantly smaller than the general population but cares a lot about that one attribute that Google can't match).

nostrademons 7y ago

If they compete on the big company's territory, the most likely outcome is that they die. Big companies have more resources to deploy. If you're competing for the exact same customers, on the same featureset, with the same business model, there's usually little reason for the customer to choose the startup over the big company. Any new features can be reimplemented by the big company; any price reductions can be matched. If you've identified a particular customer segment that has needs that aren't being served and can't easily be served without rearchitecting the big company's product or business model, then you can survive. But the process of doing that means answering "#1 Who are your customers?" and "#2 What are you selling?", which makes for a startup. Once you've answered that you have a small business (if the niche is static and small) or a new fast-grower (if the niche is a result of a change of the environment that affects a large number of customers).

streetcat1 7y ago
Have you worked in the R&D department of a big company? Did Nokia match Apple? Why not? Was it a resource problem? Did MS matched Android? Why not?. I mean the biggest OS company in the world has no mobile OS? Did IBM matched Dec? Have you seen a big company do that? If yes, can you give a concrete example, where a big company killed a startup? Do you know what motivates big company R&D decisions?
- nostrademons 7y ago
  I have worked in the R&D department of a big company (Google Search). I'm currently a startup founder. There is no way in hell I would want to compete directly with Google on terrain they are dominant in. Several startups have tried and failed (Cuil, Blekko), as well as one big company (Bing) and one that's become a successful niche business (DDG, occupying the niche of privacy-conscious searchers that's significantly smaller than the general population but cares a lot about that one attribute that Google can't match).