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Should Your Startup Coexist or Compete?

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Jared Lynskey
Author
Jared Lynskey
Emerging leader and software engineer based in Seoul, South Korea

Most startups face a choice early on: build on top of existing platforms or compete with them directly. Both can work, but the timing matters.

Benefits of Coexisting
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When you’re early-stage and still figuring out product-market fit, coexisting with established platforms makes sense:

  • Market Insights: Operating inside or alongside dominant platforms teaches you what users actually want.
  • Built-in Users: Building integrations for popular platforms gives you immediate distribution.
  • Less Direct Competition: You can find a niche within a larger ecosystem instead of going head-to-head.

Prominent examples include the rise of PayPal, which began as a payment solution for eBay users, and the myriad of successful apps designed for platforms like Shopify and Slack.

Transitioning from Coexistence to Competition
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As startups grow and understand their user base better, they often recognize opportunities to differentiate and expand. Identifying overlaps in functionalities or unmet market needs can pave the way for a more competitive stance. Companies like Instagram, which evolved from a photo-filtering app to a comprehensive social media platform, serve as testimonies to this transition.

So, when should startups consider this shift? Potential indicators include:

  • Domain Expertise: If a startup has developed significant knowledge or proprietary technology, it might be time to venture beyond coexistence.
  • User Behaviors: Monitoring user engagement with competitors can hint at overlaps and opportunities for differentiation.

Integrating a Community App with Social Platforms
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For startups building community apps, emphasizing integration with existing social platforms can be vital. Strategies include:

  • Single Sign-On & Profile Integration: Streamline user onboarding by allowing logins via popular social profiles.
  • Content Sharing: Enable users to share community content on their social feeds, fostering organic marketing.
  • Engagement Notifications: Allow users to celebrate community mentions or recognitions on other platforms.
  • Embedding & Widgets: Provide tools for users or partners to embed community features on their sites or platforms.
  • API Integrations: Enhance user value by integrating with APIs of complementary platforms.
  • Collaborations & Partnerships: Engage with influencers on major platforms for promotions and collaborations.
  • Cross-Platform Campaigns: Organize events requiring participation across multiple platforms, increasing user engagement.

The choice isn’t binary. Most startups start by coexisting and shift toward competing as they grow. The key is recognizing when you have enough domain expertise and user traction to make that shift.