Earlier quoted context omitted.
> The third part, "our competitors will fork and steal our business!", is possible, but extremely unlikely, unless you suck at your product. I don't think you appreciate the danger here. Someone can sink a few tens of thousands of dollars into cloning a codebase, then make it to market in a bare fraction of the time it took you to get there. When you say "incumbents don't get unseated without tremendous effort," you'…
You can claim a lot of things that don't happen are dangerous. Skating on ice is dangerous, because someone could bring out a flamethrower or napalm. Flying on a plane is dangerous, because someone could fire a shoulder-mounted rocket at your plane. Eating food with a fork is dangerous, because someone could come up behind you and slap the fork into your throat. All of these things are dangerous possibilities that do…
It's basically like the kudzu that grows ubiquitously across the SE United States. Find a tree, climb it, then steal all its sunlight. Look at an existing business, find out what makes it tick, then clone its business model and go after its customers using the same marketing channels its using.
I don't think you'd have to read many business books to find an account of this happening, albeit with non-software products. It works because customers simply don't have the bandwidth to be loyal or to thoroughly research everybody they do business with.