How do you compete with them as a small startup when they can simply incorporate any improvements your app or service offers? Since they already possess an established brand, they can render your startup's differentiating aspect irrelevant.
People often mention the MySpace vs. Facebook battle from two decades ago, highlighting how Facebook succeeded as the underdog. However, in today's landscape, most startups are highly sensitive to any threats and tend to appropriate anything that could make a competitor relevant in the marketplace.
MySpace could have easily crushed Facebook by implementing everything the young Facebook was doing at that time, strengthening their brand while making their upcoming competitor irrelevant.
So, how can your startup compete when larger companies can easily adopt your differentiating features?
Sometimes, I contemplate starting a niche-market startup to assist certain people. However, upon further consideration, I realize that as soon as it gains popularity, these corporate giants will swoop in, incorporating my features (without compensation, of course) into their already popular apps.
I recall the individual who created the flashlight app for the early iPhone days. When Apple recognized the value of this functionality, they simply integrated it into the operating system, essentially bankrupting the developer behind the flashlight app.
So, what are your thoughts on this?