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Marketplace businesses tend to be natural monopolies, so there is in fact a strong first mover advantage. Once you become the dominant marketplace in a category
by ig1 15y ago
Marketplace businesses tend to be natural monopolies, so there is in fact a strong first mover advantage. Once you become the dominant marketplace in a category it becomes very hard for someone else to displace you (look at craigslist, ebay, etc.)
I'm guessing a significant chunk of that 3m will go towards marketing.
- melarobi 15y agoUser ratings, if done correctly, will make the site "sticky", so if they build their user base fast enough, they could have a first mover advantage. Even so, social networks supposedly have a first mover advantage and even those die off as improved user experiences are presented. It sounds like several of these dog sites have launched in the past few months, and the winner will be the one that makes the best user experience while building volume of users with polished profiles and ratings that seem real and credible.