[credit provider=”nytimes blog” url=”http://bits.blogs.nytimes.com/2010/06/14/one-on-one-fred-wilson-union-square-ventures/”]
Today’s advice comes from Fred Wilson, principal at Union Square Ventures:
“There are a number of good things about competition. Competitors will invest in marketing and the combined marketing efforts of a number of competitors will accelerate the development of a nascent market.
“It is very hard to build a market all alone. Also, when a large company enters a market, it validates the market in the minds of many who had not been paying attention to it before.
“That means customers and also eventual acquirers of your company. And there is nothing quite like a competitor to fire up a team.”
“I’ve seen many companies start to coast a bit after they have successfully taken control of a market. Then a pesky new competitor enters, takes some business from them, and then
all of a sudden the team is fired up again.”
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