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Barriers to entry are no longer created by patents or by tech differentiation alone, but by superior traction in the marketplace. This trend is particularly true in markets that are highly susceptible to network effects, such as online auctions and socialnetworks.
Here are the key ones: Real intellectualproperty. Strong focus and differentiation. A new socialnetworking product that proclaims to combine the best of Facebook, MySpace, LinkedIn, and Twitter has too broad a focus and will likely not compete in the long run with existing offerings.
Here are the key ones: Real intellectualproperty. Strong focus and differentiation. A new socialnetworking product that proclaims to combine the best of Facebook, YouTube, LinkedIn, and Twitter has too broad a focus and will likely not compete in the long run with existing offerings.
If you are looking for funding and customers for your new business, you need to identify your “unique selling proposition” (USP) right up front, in 30 seconds or less, to differentiate yourself in today’s information overload. Ideally the solution embodies intellectualproperty that you own, giving you a sustainable competitive advantage.
Here are some of the key ones: Real intellectualproperty. Strong focus and differentiation. A new socialnetworking product that proclaims to combine the best of Facebook, MySpace, LinkedIn, and Twitter has too broad a focus and will likely not compete in the long run with existing offerings.
From socialnetworks like Facebook (clone: vKontakte ) to microblogging services like Tumblr (clone: Dian Dian ) to daily deal sites like Groupon (clone: Snapdeal ), to gifting apps like Wrapp (clone: DropGifts ) and online retail stores like Amazon (clone: Lazada ), the examples aren’t hard to find. The clones.
But now, the defining movie of today’s twentysomethings is “The SocialNetwork”. Access to University’s IntellectualProperty : Office of Cooperative Research. My former Partner John Frankel of ff Venture Capital observes that 20 years ago, the defining movie of the generation was “Wall Street”.
For a new startup, the best way to assure survival is to file patents or other intellectualproperty to keep future competitors from copying your success. In reality, dating is a form of socialnetworking, so Facebook could easily enhance their services in this direction, if the market traction of others was evident.
Include differentiators in your plan, even if you’re not sure you will ever build them. Do you need to differentiate more? at 4:52 am @Blain- I don’t think so… I’m saying don’t do Freemium unless the free offering adds value or differentiates your premium offering- not as marketing. #61
Some of the investments defy explanation… Money poured into something that no one has yet been able to monetise, with a competitive landscape that is over-saturated, and with no real differentiation from what’s already out there. I see online video, mobile location, specialized socialnetworking, and other craps.
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