[stackghost]

>The real issue is that if you do manage to build a cheaper clone they can just delete you by lowering their prices.

Yep, this is why cost leadership strategies tend to be unattractive to startups. Finding ways to be meticulously frugal just isn't exciting to most people, I would think.

[ajkjk]

Well my point is that it's not a question of how exciting it is. It is that it is essentially unworkable as a business strategy, unless you have a technique for being more frugal or efficient than it is possible for your competitor to be. And they have scale on their side, so it is doubtful.

(that said I'm just an engineer parroting things I heard while working there, I wasn't involved in any actual strategy)