This is a continue, from the last post InEquality.

Unlike traditional business, the internet is actually a much more competitive field – usually, consumer’s need in a certain field, can be fulfilled by a single company; company can only win the competition via diversity.

While for traditional business, due to the issue of scalibility, the market allows multiple companies, with samilar nature of business, build the same product, to exist in the market, together.

I try to summarize several properties of the internet-product / service:

No Geo-Location Issue

Because the product is virtual, geo-location is usually not an issue. Therefore, as long as the product is built, the target user base can be anyone with access to the internet.

Less Scalibility Issue

The marginal cost for the internet product, is very low. The price of adding extra servers with the increased amount of users, can be near to 0 when averaged.

More Cultural & Language Issue

But understanding is a strong term here. Although not so obverious, different area with different culture, would share different set of behaviours. Therefore, there is actually a limition upon location, and that’s the place that copy-cats can take advantage of.

More Experience Issue

When the basic needs of consumer can be fulfilled, they’re looking for something with better experience. Comparing product A with product B, if consumer starts to use A already, but B provides slightly better experience.. probably consumers won’t move to B because the reason issn’t strong enough.

But when talking about user experience, every single detail counts. As the better design accumulates, consumer would do feel a difference, and that is the time when the ‘first-mover’s advantage’ start to lose.

Because the price of using / giving-up a product is nearly 0, it’s quite easy for the consumers to shift to another product.

Therefore, there’re always space for competition – through diversity, and better experiences.

More Community Issue

There needs to be reasons for the consumer to stick with a product. Community is definitely one of the reasons.

It’s like some kind of slime, and users are like the molecules within – when gethered together, it’s less likely to break them. People of a feather, flocks together.

Make it Success, or Go Home

Because of the fact that the high competition in the internet.. doing a start-up is more like: you either put all your resources into one single spot, so that you can gain a higher chance to win; or you’ll simply lose and go home.

It’s inequality. It’s a game, that winner takes all.