Entrepreneurship

Is it advantageous for startups to be late (rather than early) on the scene?

Gurvinder singh QA || QC || Automation || Agile || Scrum

April 27th, 2017

I was thinking about Facebook recently and some of the social networks that came before it, such as Friendster and MySpace. When Facebook launched in 2004, these companies were not yet punchlines. MySpace, if you’ll remember, had a $12b valuation as late as 2007! Was Facebook in a position of strength because it saw these companies launch, observed them, and built a product that did things they couldn’t? Is it advantageous to be the second or third on the scene?

Steve Owens

April 28th, 2017

First to market is nothing. Best to market is everything.

John McMahon CEO at Starter Inc.

April 27th, 2017

You are correct. First mover advantage rarely is.


"it pays to wait"


"category drafting"


Let others pay to educate your customers and validate the market, learn from their mistakes....


That said, you will need sustainable differentiation... and dont wait till the competition becomes a monopoly...


Try competing with Facebook in 2017 to see what I mean...

James Corbishley Inventor and sustainable energy startup

April 28th, 2017

Both Google and Facebook seem to be entrenched, they have massive resources
which means very few companies can compete. Maybe if it is better to be late,
there is such a thing as 'too late'? And also, maybe some companies are just
to big and established to compete against?

But as you said, Facebook wasn't the first such product and I suppose you could
say they got in a little late. I think there is some advantage to seeing a
novel product launch and establish, then improving it. That also seems to be
how many of the successful messenger services launched (WhatsApp etc.)

And Google wasn't the first search engine:

http://www.searchenginehistory.com

So maybe the short answer is 'get in late, but not too late'?

LinkedIn is a well established product but not to the scale of Facebook, and
there do seem to be rival products launched which compete. It will be
interesting to see how these do.

Good luck with your projects anyhow,

James

Rey Tamayo Driven to Innovate, Enthusiastic to Help Others

April 29th, 2017

Most of todsy's top tier texh companies worth fee exceptions were not the early birds that got the worm but the second mouse that got the cheese. It often takes time to get an innovation right and later entrants already know the mistakes others have made. So it seems that innovation and startup success favors the copycats with a good pivot!