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image: SOLVING THE CHICKEN OR THE EGG by tomi-col

SOLVING THE CHICKEN OR THE EGG

One of the most defensible positions for a startup is if you can achieve the network effect. The network effect is so strong that it has kept large companies in business for a long time, despite bad products and numerous competitors. Craigslist is a perfect example. It is only recently that a new wave of startups like AirBNB, TaskRabbit, and RentJuice have started to chip away at the Craigslist stronghold, but it took over 10 years.   The network effect has also defended companies like...