“In many [online marketplace] categories, there will be some very, very big winners like Amazon, but there will be many other smaller winners because there is truth in the old adage that you can’t be all things to all people.”
Winner Take All Or Not, Josh Breinlinger
This post below isn’t new and in fact quite old, but good information is perennial (I’ve always found).
“In my opinion there are two models that lend itself to this kind of positive reinforcement cycle over time [one where the business actually becomes stronger as it gets bigger]: companies with low cost production or scale advantages and companies with a two-sided network effect.”
Importance of ROIC: “Reinvestment” vs. “Legacy” Moats, John Huber
“This problem isn’t unique to tech companies: investors are dubious of a VC firm’s second fund, TV network executives grumble about ‘second season downfall,’ and musicians fret over ‘the sophomore slump’ (or even the ‘third album curse’).”
From One to Infinity and Beyond: Avoiding Second Product Syndrome, Ken Norton