As soon as Ηotmail free web mail, achieved critical mass of user base, they had achieved a substantial and sustainable competitive advantage. This is why Microsoft decided not to build a similar service, but to acquire Hotmail. What Microsoft bought is rather the market share and reputation, than the technology or resources. Big search engines who have long time ago achieved a huge user base, managed to monetize this base through PPC. They enjoy now major revenue streams, allowing them to invest heavily in further development and acquisitions.

In their early development stages certain niche market internet products, aim at attracting the attention of the internet community. As soon as they achieve this, they also attract the attention of the major players. Youtube became the acknowledged video portal. Jotspot a successful web collaboration platform for mobile workers. The attention and subscriber base they have achieved, may not yet translate into profitability, but the growth potential has been evaluated by the acquirer as attractive.

Through their acquisition, these niche players received huge publicity and secured their viability. Forums offer to pay for participation, in order to achieve a critical mass of participants. Critical mass in the development of interest groups, is a critical success factor. The forum technology is commoditised. Article banks aim to attract a high number of readers and newsletter subscribers, as well as a high number of quality copywriters who shall ensure rich content. Web hosting providers and DNS registrars aim to develop a critical mass that will allow them to achieve economies of scale in their infrastructure investment and operations. In a dynamically evolving Internet market, the reduced development & promotion cost, contributes to the fast rise of innovatory services. Attracting sufficient attention is the key to their success.

Copyright 2006 ? Kostis Panayotakis