Earlier quoted context omitted.
I strongly disagree especially in the case of social networks. First movers in such spaces have incredible advantages and one of them is a lock-in effect. Countless follow-up social sites have come and gone that either had feature parity or better offerings than Facebook, but failed to get a foothold because of the fact that everyone already had Facebook. Why switch when everyone can already talk and plan? SV really…
>I strongly disagree especially in the case of social networks. First movers in such spaces have incredible advantages and one of them is a lock-in effect. Countless follow-up social sites have come and gone that either had feature parity or better offerings than Facebook, but failed to get a foothold because of the fact that everyone already had Facebook. Why switch when everyone can already talk and plan? Sure, and…
There are other examples. The iPhone was not the first smart phone, but it was better than all of the others when it came out. It dominated for a while, and even though it's no longer the dominant smart phone (I believe there are more Android phones), all smart phones are derivatives of that first iPhone. Google beat Yahoo and AltaVista. Historically, I think it's usually second-movers that win, because they tend to benefit from the first-movers defining the problem, and one of the second-movers solves it better.