There's always room for new entrants. What about Google overtaking Yahoo and Facebook overtaking MySpace? In hindsight it's easy to point out flaws, but at the time, each of the respective sites were their markets leader.
there's a difference between a market leader and the market leader customers are satisfied with. myspace was shit and everybody knew it. there was plenty of room for a new entrant. same thing with yahoo. even with google, there is still potentially room for new entrants in the search market because search is such a complex problem and there are many ways of approaching it.
classifieds, however, is a very simple market, and craigslist does an exceptional job of serving that market. you can't beat them on price or reach, and there are no other important features. the only hope of success in selling classifieds is to launch into geographical areas or languages they don't serve. it's also a fairly low-margin market, and the primary customers are cheapskates.
why would you attempt to enter a market like that when there are underserved, lucrative markets to be exploited?
classifieds, however, is a very simple market, and craigslist does an exceptional job of serving that market. you can't beat them on price or reach, and there are no other important features. the only hope of success in selling classifieds is to launch into geographical areas or languages they don't serve. it's also a fairly low-margin market, and the primary customers are cheapskates.
why would you attempt to enter a market like that when there are underserved, lucrative markets to be exploited?