“There are a few exceptional cases where being first virtually guarantees a sustainable advantage; they generally fall into three categories. First, if you can lock up ironclad patent protection, then you’re set for years. Second, if you have a proprietary industry standard, such as MS-DOS, you can hold a dominant position despite the presence of better solutions. Third, if customers find it too much of a hassle to move over to a better solution, they’ll stay with you despite having better options . . . But the great irony of many Internet companies — with all their frantic ranting about being first to build critical mass — is that they are generally in businesses that don’t fall into those exceptional categories.”
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published in August 2000 but still of value