Competitor Analysis Quotes

Always treat your competitors smarter than you are.

Strategy is your war plan. If you go to a war without your strategy, you might not be able to defeat the enemy.

There is no better tool to bring you closer to your competitors than market research. So, keep your friends close and your competitors even closer with the help of market research.

Market research gives you enough time to learn from your competitors’ mistakes, take inspiration from their strengths, and exploit their weaknesses.

Another key strategic concept deriving from competitor analysis is creating a situation of mixed motives or conflicting goals for competitors. This strategy involves finding moves for which retaliation, though effective, would hurt the competitor’s broader position. For example, as IBM responds to the threat of the minicomputer with its own minicomputer, it may hasten the decline in growth of its large computers and accelerate the changeover to minicomputers. Placing competitors in a situation of conflicting goals can be a very effective strategic approach for attacking established firms that have been successful in their markets. Small firms and newly entered firms often have very little legacy in the existing strategies in the industry and can reap great rewards from finding strategies that penalize competitors for their stake in these existing strategies.

In neo-classical economic theory, it is claimed without evidence that people are basically self-seeking, that they want above all the satisfaction of their material desires: what economists call "maximising utility". The ultimate objective of mankind is economic growth, and that is maximized only through raw, and lightly regulated, competition. If the rewards of this system are spread unevenly, that is a necessary price. Others on the planet are to be regarded as either customers, competitors or factors of production. Effects upon the planet itself are mere "externalities" to the model, with no reckoning of the cost - at least for now. Nowhere in this analysis appears factors such as human cooperation, love, trust, compassion or hatred, curiosity or beauty. Nowhere appears the concept of meaning. What cannot be measured is ignored. But the trouble is that once our basic needs for shelter and food have been met, these factors may be the most important of all.

As a rule of thumb, investors should spend the bulk of their time on the disclosures of the security under study, and they should spend significant time on the reports of competitors.

To make good choices, you need to make sense of the complexity of your environment. The strategy logic flow can point you to the key areas of analysis necessary to generate sustainable competitive advantage. First, look to understand the industry in which you play (or will play), its distinct segments and their relative attractiveness. Without this step, it is all too easy to assume that your map of the world is the only possible map, that the world is unchanging, and that no better possibilities exist. Next, turn to customers. What do channel and end consumers truly want, need, and value-and how do those needs fit with your current or potential offerings? To answer this question, you will have to dig deep-engaging in joint value creation with channel partners and seeking a new understanding of end consumers. After customers, the lens turns inward: what are your capabilities and costs relative to the competition? Can you be a differentiator or a cost leader? If not, you will need to rethink your choices. Finally, consider competition; what will your competitors do in the face of your actions? Throughout the thinking process, be open to recasting previous analyses in light of what you learn in a subsequent box. The basic direction of the process is from left to right, but it also has interdependencies that require a more flexible path through it.

It was common knowledge at one prominent women’s brand I worked for that the reason they didn’t have more women of color, specifically Black women, on their legacy magazine covers was because they didn’t sell as well. For a business enterprise, and a financially struggling one at that, the editorial strategy to routinely flood the covers with normatively sized straight white women was presented as necessary business, and not a deeply racist lens. But this is where I’ve encountered capitalism to be at its most damaging: it provides an all-encompassing language to code racism, heterosexism, and classism as something else—to establish distance between these deeply coursing prejudices and the unavoidable realities of running a business. This distance insulates. It establishes an alternative reality in which testimonials, diversity reports, investigations, and data analysis on representation don’t resonate because making money is the ultimate objective above all else. But that’s all the more reason why the impetus to drive profits also needs to be aligned and analyzed in endeavors against oppression. Because the drive to make money, more money, more money than your competitors, more money than you made last year, more money than projected for the following year is an enduring vehicle for suppression.

In the absence of expert [senior military] advice, we have seen each successive administration fail in the business of strategy - yielding a United States twice as rich as the Soviet Union but much less strong. Only the manner of the failure has changed. In the 1960s, under Robert S. McNamara, we witnessed the wholesale substitution of civilian mathematical analysis for military expertise. The new breed of the "systems analysts" introduced new standards of intellectual discipline and greatly improved bookkeeping methods, but also a trained incapacity to understand the most important aspects of military power, which happens to be nonmeasurable. Because morale is nonmeasurable it was ignored, in large and small ways, with disastrous effects. We have seen how the pursuit of business-type efficiency in the placement of each soldier destroys the cohesion that makes fighting units effective; we may recall how the Pueblo was left virtually disarmed when it encountered the North Koreans (strong armament was judged as not "cost effective" for ships of that kind). Because tactics, the operational art of war, and strategy itself are not reducible to precise numbers, money was allocated to forces and single weapons according to "firepower" scores, computer simulations, and mathematical studies - all of which maximize efficiency - but often at the expense of combat effectiveness. An even greater defect of the McNamara approach to military decisions was its businesslike "linear" logic, which is right for commerce or engineering but almost always fails in the realm of strategy. Because its essence is the clash of antagonistic and outmaneuvering wills, strategy usually proceeds by paradox rather than conventional "linear" logic. That much is clear even from the most shopworn of Latin tags: si vis pacem, para bellum (if you want peace, prepare for war), whose business equivalent would be orders of "if you want sales, add to your purchasing staff," or some other, equally absurd advice. Where paradox rules, straightforward linear logic is self-defeating, sometimes quite literally. Let a general choose the best path for his advance, the shortest and best-roaded, and it then becomes the worst path of all paths, because the enemy will await him there in greatest strength... Linear logic is all very well in commerce and engineering, where there is lively opposition, to be sure, but no open-ended scope for maneuver; a competitor beaten in the marketplace will not bomb our factory instead, and the river duly bridged will not deliberately carve out a new course. But such reactions are merely normal in strategy. Military men are not trained in paradoxical thinking, but they do no have to be. Unlike the business-school expert, who searches for optimal solutions in the abstract and then presents them will all the authority of charts and computer printouts, even the most ordinary military mind can recall the existence of a maneuvering antagonists now and then, and will therefore seek robust solutions rather than "best" solutions - those, in other words, which are not optimal but can remain adequate even when the enemy reacts to outmaneuver the first approach.

The reasons for cooperatives’ success should be obvious by now, but they are worth reiterating: “The major basis for cooperative success…has been superior labor productivity. Studies comparing square-foot output have repeatedly shown higher physical volume of output per hour, and others…show higher quality of product and also economy of material use.”118 Hendrik Thomas concludes from an analysis of Mondragon that “Productivity and profitability are higher for cooperatives than for capitalist firms. It makes little difference whether the Mondragon group is compared with the largest 500 companies, or with small- or medium-scale industries; in both comparisons the Mondragon group is more productive and more profitable.”119 As we have seen, recent research has arrived at the same conclusions. It is a truism by now that worker participation tends to increase productivity and profitability. Research conducted by Henk Thomas and Chris Logan corroborates these conclusions. “A frequent but unfounded criticism,” they observe, “of self-managed firms is that workers prefer to enjoy a high take-home pay rather than to invest in their own enterprises. This has been proven invalid…in the Mondragon case… A comparison of gross investment figures shows that the cooperatives invest on average four times as much as private enterprises.” After a detailed analysis they also conclude that “there can be no doubt that the [Mondragon] cooperatives have been more profitable than capitalist enterprises.”120 Recent data indicate the same thing.121 One particularly successful company, Irizar, which was mentioned earlier, has been awarded prizes for being the most efficient company in its sector; in Spain it has ten competitors, but its market share is 40 percent. The same level of achievement is true of its subsidiaries, for instance in Mexico, where it had a 45 percent market share in 2005, six years after entering the market. An author comments that “the basis for this increased efficiency appears to be linked directly to the organization’s unique participatory and democratic management structure.”122 A major reason for all these successes is Mondragon’s federated structure: the group of cooperatives has its own supply of banking, education, and technical support services. The enormous funds of the central credit union, the Caja Laboral Popular, have likewise been crucial to Mondragon’s expansion. It proves that if cooperatives have access to credit they are perfectly capable of being far more successful than private enterprises.

This is, in fact, exactly how electrical engineers go about understanding and debugging circuits such as computer boards (to reverse engineer a competitor’s product, for example), using logic analyzers that visualize computer signals. Neuroscience has not yet had access to sensor technology that would achieve this type of analysis, but that situation is about to change. Our tools for peering into our brains are improving at an exponential pace. The resolution of noninvasive brain-scanning devices is doubling about every twelve months (per unit volume).31 We see comparable improvements in the speed of brain scanning image reconstruction:

Read the notes.Never buy a stock without reading the footnotes to the financial statements in the annual report. Usually labeled “summary of significant accounting policies,” one key note describes how the company recognizes revenue, records inventories, treats installment or contract sales, expenses its marketing costs, and accounts for the other major aspects of its business.7 In the other footnotes, watch for disclosures about debt, stock options, loans to customers, reserves against losses, and other “risk factors” that can take a big chomp out of earnings. Among the things that should make your antennae twitch are technical terms like “capitalized,” “deferred,” and “restructuring”—and plain-English words signaling that the company has altered its accounting practices, like “began,” “change,” and “however.” None of those words mean you should not buy the stock, but all mean that you need to investigate further. Be sure to compare the footnotes with those in the financial statements of at least one firm that’s a close competitor, to see how aggressive your company’s accountants are. Read more. If you are an enterprising investor willing to put plenty of time and energy into your portfolio, then you owe it to yourself to learn more about financial reporting. That’s the only way to minimize your odds of being misled by a shifty earnings statement. Three solid books full of timely and specific examples are Martin Fridson and Fernando Alvarez’s Financial Statement Analysis, Charles Mulford and Eugene Comiskey’s The Financial Numbers Game, and Howard Schilit’s Financial Shenanigans. 8

The 5C structure is generic—useful to product, marketing, and more—whereas the way we presented the sections in this chapter is very focused on product management. It’s good to know what the “C”s stand for because you’ll likely hear 5C mentioned. Plus if you need to do a situational analysis on your feet in a meeting or interview, it’s relatively easy to remember. Company: This refers to the company’s experience, technology, culture, goals, and more. It’s similar to the material we covered in the “Why Does the Company Exist?,” “How Do We Know If Our Product’s Good?,” and “What Else Has Been, Is Being, and Will Be Built?” sections. Customers: Who are the people buying this product? What are the market segments? How big are they? What are people’s goals with buying this product? How do they make buying decisions? Where do they buy this type or product? This is similar to what we covered in the “Customers and Personas” and “Use Cases” sections. Collaborators: Who are the external people who make the product possible, including distributors, suppliers, logistical operators, groundwork support personnel, and so on? Competitors: Who is competing for your customers’ money? This includes actual and potential competitors. You should look at how they position their product, the market size they address, their strengths and weaknesses, and more. Climate: These are the macro-environmental factors, like cultural, regulatory, or technological trends and innovations.

Written sales call objective. Needs-analysis questions to ask. Something to show. Anticipated customer concerns and objections. Points of difference vis-à-vis competitors. Meaningful benefits to customers. Dollarization approach; investment return analysis. Strategies to handle objections and eliminate customer concerns. Closing strategies.

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Market view analysis generally includes a series of components: ·      Market focus ·      Size of your market and its anticipated growth rate ·      Overview of your company’s current market position ·      Description of the market segments you serve ·      Matrix of your top competitors by market segment ·      More detailed breakdown of the competitors ·      Overview of your current position with a focus on possible market opportunities ·      Buy-versus-build opportunities ·      Possible acquisition candidates ·      List of risks and contingencies ·      Potential competitive movements ·      Deep dives into specific competitors

Oddly, Orkut became a sensation in Brazil. “In Brazil, Orkut is the Internet and Google is search,” wrote one local journalist, who added that using Orkut was “like putting sugar in your coffee, watching Globo telenovelas, or heading to the beach from Christmas to Carnival.” On a trip to Brazil in 2006, Sergey Brin was asked why, and he responded, “We don’t know—what do you think?” When pressed, Googlers would refer to stereotypes of Carioca sociability, but that didn’t sufficiently explain why Orkut became the social networking choice of this country over other competitors—or why Orkut was so badly left behind in the rest of the world. Marissa Mayer’s personal analysis was based on the Google yardstick of speed. Brazilians, she says, were used to lousy Internet service and thus more tolerant of the delays. “They would just keep sitting there and waiting,” she says. Orkut was also dominant in India, where it was the number one Google service—ahead of search and Gmail. “There is no second product in India—Orkut is dominant,” said Manu Rekhi, the Orkut India product manager, in 2007. “I’ve seen beggar kids who use their money to get on Orkut.” Mayer also attributed that success to its quick response compared to other services. “Do you know why Orkut took off in India?” she would ask. “Opposite time zone, and no load on the servers at night. Speed matters.” (Why Orkut ruled in Brazil, however, was a mystery never solved.)

An in-depth, introspective analysis is required. It needs to be objective, candid, and thorough. Good questions, like the following, can help. They may not produce perfectly clear answers, but they are a starting point. (Note that they are from an external perspective to give you some distance from internal biases.) What would our competitors say we do exceptionally well? Where are we dominant in the marketplace? Where do we have high market share? Where have others attempted to compete with us and failed? If we asked members to play “word association” with us, when we say the “XYZ Association” what word or phrase would come immediately to mind? If we asked members to identify the one thing that we do that helps them most, what would they say? What are we not doing that we should be doing that expands on existing strength? Don’t allow your association to operate on “pseudo strength.” Make sure your strength is real.

If you were to determine in this branch of the analysis that the client had only a modest and temporary competitive advantage over its competitors, would it affect your initial hypothesis that the client should enter XYZ market? My initial instinct would be to revise my hypothesis to “Client should not enter XYZ market” because, based on the analysis of the first branch, half the market is shrinking, and the client doesn’t have a long-term advantage in the market.

For example, let’s say that during your analysis you discover something indicating that the client’s key issue is internal, not related to its competitors. Instead of answering all the questions in the competitor section of the framework, revise your hypothesis to say that the client’s key issue is internal, and switch to the company portion of the framework (or in some cases, create a custom issue tree).

Here are the types of questions I consider asking during product analysis: What is the nature of the product? (What are its benefits? Why would someone buy it?) Is it a commodity good or a unique good? (Could the company increase differentiation?) Are there any complementary goods? (Can the company piggyback off growth in complements or near complements?) Are there any substitutes? (Is the company vulnerable to indirect competitors, namely substitutes?) What is the product’s life cycle? (Is it new or almost obsolete?) How is it packaged? (This is an optional question. Is anything bundled or included with the product—for example, just a razor versus a razor with replacement blades, or just a product versus a product with a service contract? Would a change in the product’s packaging make the product more likely to meet specific consumer segments’ needs?) If you selectively ask questions about these product-related topics, you can uncover insights that will help you refine your hypotheses and ultimately serve your client more effectively.

If I do any company analysis at all, I almost always ask two specific questions related to this topic: What does this company do well? What does this company do differently than its competitors?

Competitive analysis shouldn’t aim to snap a picture of “the answer,” rather it should build a picture around common themes but allow for changing parts. For example, Toyota is now allowing more option-package flexibility as it advances its data systems. But the core competitive story remains the same. By coming up with new products faster, it puts competitors on the marketing defensive.

AMT Market Research Agency in Myanmar stands as a pivotal player in the dynamic landscape of market research within the country. With a commitment to delivering unparalleled insights and strategic solutions, AMT Market Research has established itself as a trusted partner for businesses seeking to thrive in Myanmar's evolving market. This article delves into the core aspects of AMT Market Research, exploring its services, methodologies, and the significance of market research in Myanmar. Through case studies, client testimonials, and a glimpse into future trends, we uncover the depth and impact of AMT Market Research in driving success for businesses in Myanmar. Introduction to AMT Market Research Agency in Myanmar AMT Market Research is not your run-of-the-mill agency in Myanmar. With a knack for unraveling the mysteries of consumer behavior, they're the Sherlock Holmes of the market research world. Let's delve into what makes them tick. Background of AMT Market Research Founded with a passion for decoding the pulse of the market, AMT Market Research has been shaking up the industry in Myanmar. Their team of savvy researchers leaves no stone unturned in uncovering insights that drive business success. Mission and Vision of the Agency AMT Market Research's mission is simple yet powerful: to empower businesses with data-driven decisions that spark growth and innovation. Their vision? To be the go-to partner for companies looking to navigate the ever-evolving market landscape in Myanmar. Services Offered by AMT Market Research When it comes to services, AMT Market Research doesn't just dip their toes in the water—they dive in headfirst, armed with a treasure trove of strategic insights. Market Entry Strategy From market sizing to competitor analysis, AMT Market Research crafts bespoke market entry strategies that pave the way for success in Myanmar's dynamic business environment. Consumer Behavior Analysis Curious about what makes your target audience tick? AMT Market Research digs deep into the minds of consumers, decoding their preferences, habits, and aspirations to help you tailor your offerings with precision. Competitor Analysis In a market as competitive as Myanmar, staying ahead of the game is crucial. AMT Market Research's competitor analysis services provide a roadmap for outshining the competition and carving out your niche. Importance of Market Research Agency in Myanmar In the bustling landscape of Myanmar, market research isn't just a luxury—it's a necessity. Understanding the economic terrain and growth opportunities is key to thriving amidst the challenges that lie ahead. Economic Landscape of Myanmar Myanmar's economic landscape is a canvas of untapped potential and burgeoning opportunities. Market research serves as the compass that guides businesses through this vibrant yet complex terrain. Growth Opportunities and Challenges With growth opportunities aplenty, Myanmar beckons businesses with promises of success. However, navigating the challenges, be it regulatory hurdles or shifting consumer trends, requires a keen understanding of the market—enter AMT Market Research. Methodologies Utilized by AMT Market Research When it comes to research methodologies, AMT Market Research doesn't settle for the ordinary. Their toolbox is brimming with innovative techniques that paint a comprehensive picture of the market landscape. Quantitative Research Techniques Numbers don't lie, and neither do AMT Market Research's quantitative research techniques. From surveys to data analysis, they crunch the numbers to unearth patterns and trends that inform strategic decision-making. Qualitative Research Approaches

Data sources All these components give you feedback and insight into how best to configure your campaigns, although the data sources are often spread around in different places and sometimes difficult to find and interpret. Campaign types Search & Partner Dynamic Search Display Network Remarketing & Dynamic Remarketing Google Shopping for eCommerce Google Merchant Center Data feeds Google Shopping Campaigns Device selection PC / Tablets Mobiles & Smartphones Location Targets & Exclusions Country Metro State City Custom and Radius Daily Budgets Manual CPC Enhanced CPC Flexible Bidding strategies Conversion Optimizer (CPA) Return on Ad Spend (ROAS) Conversion Tracking Setup and configuration Transaction-Specific Conversion Tracking Offline Conversion import Phone call tracking - website call conversions Conversion Rates Conversion Costs Conversion Values Ad Groups Default Bids Keyword Themes Ads Ad Messaging & Demographics Creative Text & Formatting Images* Display Ad Builder* Ad Preview and Diagnosis Account, Campaign and Ad Group Ad Extensions Sitelinks Locations Calls Reviews Apps Callouts Ad Rotation & Frequency Capping Rotate Optimise for Clicks Optimise for Conversions Keywords Bids Broad Modified Broad Phrase Exact Destination urls Keyword Diagnosis User Search Queries Keyword Opportunities Negative Keywords & Match Types Shared Library Shared Budgets* Automated Rules Flexible Bid Strategies Audiences & Exclusions* Campaign Negative Keywords Display Campaign Placement Exclusions* NEW! Business Data and Ad Customizers Advanced Delivery Methods Standard Accelerated Impression Share Lost IS (Budget) Lost IS (Rank) Search Funnels Assisted Impressions & Clicks Assisted Conversions Segmentation Analysis Device performance Network performance Top vs Other position performance Dimension Analysis Days & Times Shopping Geographic User Locations & Distance Search Terms Automatic Placements* Call Details (Call Extensions) Tools Change history Keyword Planner* Display Planner* Opportunities* Scheduling & Day Parting Automated Rules Competitor Ad Auction Insights Reporting* AdWords Campaign Experiments* Browser Languages* *indicates an item not covered in this version of the book

Analysis of valuable stars reveals three golden rules of innovation. 1. Innovation is best based on whatyoualready do best and most distinctively. Innovation is powerful when it suits the new category you have invented rather than the main market, because it makes the new category even more attractive to its target customers. 2. Effective innovation makes it impossible for competitors to catch up. This type of innovation never stops. Rivals can’t get closer because the stars are always widening the gap in value delivered to customers. 3. The best innovation reinforces and extends profitable variation. Innovation is not charity. Real, sustainable innovation kills two birds with one stone - it makes customers happier, and it make your venture more profitable. Innovation is hard. It takes deviant thinking and persistent non-routine action. There is no point, therefore, in wasting precious energy on innovation that does not satisfy all three golden rules. The decision to pursue a major innovation is fateful. Bad innovation drives out good.

2. MIGRATE YOUR PRODUCT LEK had to move away from ‘standard’ strategy towards analysis of competitors. This led to ‘relative cost position’ and ‘acquisition analysis’. Your task is to find a unique product or service, one not offered in that form by anyone else. Your raw material is, of course, what you and the rest of your industry do already. Tweak it in ways that could generate an attractive new product. The ideal product is: ★ close to something you already do very well, or could do very well; ★ something customers are already groping towards or you know they will like; ★ capable of being ‘automated’ or otherwise done at low cost, by using a new process (cutting out costly steps, such as self-service), a new channel (the phone or Internet), new lower-cost employees (LEK’s ‘kids’, highly educated people in India), new raw materials (cheap resins, free data from the Internet), excess capacity from a related industry (especially manufacturing capacity), new technology or simply new ideas; ★ able to be ‘orchestrated’ by your firm while you yourself are doing as little as possible; ★ really valuable or appealing to a clearly defined customer group - therefore commanding fatter margins; ★ difficult for any rival to provide as well or as cheaply - ideally something they cannot or would not want to do. Because you are already in business, you can experiment with new products in a way that someone thinking of starting a venture cannot do. Sometimes the answer is breathtakingly simple. The Filofax system didn’t start to take off until David Collischon provided ‘filled organisers’ - a wallet with a standard set of papers installed. What could you do that is simple, costs you little or nothing and yet is hugely attractive to customers? Ask customers if they would like something different. Mock up a prototype; show it around. Brainstorm new ideas. Evolution needs false starts. If an idea isn’t working, don’t push it uphill. If a possible new product resonates at all, keep tweaking it until you have a winner. At the same time . . .

Also, never forget that plain old world-class execution is your best protection from competitors and is a profit generator. Very few businesses can really deliver.

Contrary to the medieval belief that time was winding down (mundus senescit, "the world grows old," was the medieval adage), the bourgeois acquired a sense that time itself had value.

The other half of an analysis of relative position relates to cost and the degree to which the organization can achieve approximate cost parity with competitors or distinctly lower costs than competitors.

Nuclear energy is green. Renewables are not green.” His argument was based on footprint analysis. “As a Green,” he wrote, “I care intensely about land-sparing, about leaving land for Nature…. Considered in watts per square meter, nuclear has astronomical advantages over its competitors.” The solar energy equivalent of a 1-gigawatt nuclear reactor, he projected—with his own variation on Saul Griffith’s and Gwyneth Cravens’s calculations—would require 150 square kilometers (58 square miles); the wind power equivalent, 770 square kilometers (298 square miles); the corn biofuel equivalent, 2,500 square kilometers (965 square miles).

world, where competition was seen as regional in nature, have suddenly become global. Because of the difficulty of assessing what motivates competitors under conditions of state capitalism, capital cycle analysis tends to be more effectively applied to industries which are largely domestic in nature or where the dominant players are inclined to Anglo-Saxon style capitalism (as is the case in the global beer industry).

The message you want to send to the marketplace through your persistent actions is, “No one can keep up with me. I'm not going away. I am not a competitor. I am the space.

SIRIUS Partner Group is a Asia Pacific regional advisory group. Our services include: intellectual capital, technology consulting, digital transformation, executive search, market competitor analysis, big data analysis and much more.

Following is a sample list of some points you will want to include in your business plan. These can all be organized in a very professional manner in a notebook that includes tabs. • Executive summary. Include a one- or two-page summary of your plan. • Mission statement. Include one or two paragraphs that succinctly state your purpose. • Background. Present information about yourself and your experience. • Financial statement. List your assets, liabilities, and net worth. • Site location. Include a list of benefits, maps, and proximity to shopping and schools. • Demographics. Present information about the people living in the area (income, education, etc.). • Competitor analysis. Determine who your competitors are and present average rents and sales comparisons. • Marketing strategy. Define your target market (tenants, buyers, etc.). • Financial analysis. Include historical and pro forma operating statements. • Improvements. Define capital improvements to be made to the property. • Purchase agreement. Include your sales contract with the seller. • Exhibits. Include photographs of the property, tax returns, sample floor plans, and the like.

In a more nuanced analysis of network effects, the importance of first-mover advantage largely disappears. Yes, growth is very important, especially when multiple platforms are battling for control. Because of competitive pressure, most platforms feel a strong pressure to amass users as quickly as possible. This urgency is appropriate. However, growth is not an end in itself. A large, incumbent network has an advantage over new entrants and smaller competitors, but that advantage matters only if it’s sustainable.

A dominant firm may launch new products in direct competition with any competitor that tries to fill in gaps in the market. These new products may trade on the high esteem in which clients hold the dominant firm or may simply dilute the profitability of new products for smaller firms, leading them to withdraw from the market.