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by peterwwillis
2767 days ago
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You can claim a lot of things that don't happen are dangerous. Skating on ice is dangerous, because someone could bring out a flamethrower or napalm. Flying on a plane is dangerous, because someone could fire a shoulder-mounted rocket at your plane. Eating food with a fork is dangerous, because someone could come up behind you and slap the fork into your throat. All of these things are dangerous possibilities that do not happen. AFAIK, small startups do not get unseated by other small startups that poach their technology in order to ruin their competitor. Besides being quite unethical, it's very bad PR. Not to mention, someone else would have to be in the same position, ready to take the same risks, on the same business model, with the same technology, at the same time. Risky things happen. But so far, I am unaware of this particular risky thing ever happening. I would love to hear if it has happened before. (I will add the caveat that if anyone were to do this, it would be China) |
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It's basically like the kudzu that grows ubiquitously across the SE United States. Find a tree, climb it, then steal all its sunlight. Look at an existing business, find out what makes it tick, then clone its business model and go after its customers using the same marketing channels its using.
I don't think you'd have to read many business books to find an account of this happening, albeit with non-software products. It works because customers simply don't have the bandwidth to be loyal or to thoroughly research everybody they do business with.