[13ren]

5. Have some really unique features (they will get duplicated though)

Someone told me "You have limited time to make money". Does that time give you enough money? Or can you add another unique feature in that time? I'd like a business that lasts for all time - like coke/wrigley - but technology revolutions make it impossible. However, it is possible win one revolution...

Unmet demand is the incentive for copying - without oxygen, no competitor can beat you. Do you neglect, alienate or reject any market segment who wants/needs your product (including being too expensive)? Do any aspects of your product (including links in the chain of purchase) turn off customers?

For online software, lots of clever people can reverse engineer it; and customers can learn about it, trial it, adopt it and integrate with their lives/businesses. These are buffers, not "barriers to entry". It takes some time, but doesn't stop competitors - if there is unmet demand.

The best way to stop your competitors from serving your customers... is to serve your customers.

[DenisM]

In most of the iphone apps the set of needed features is small. Once users are satisfied with functionality they look for convenience and then price.

Features are not a sustainable advantage, only temporary.