And if you enter the vicious circle

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By the time a platform is able to reach a huge critical mass of users and enters the virtuous circle, competitors starting from scratch and trying to enter will find it practically impossible to scratch any market share . Think about it: businesses that start from scratch do not provide any value to users . Imagine you wanted to compete against Airbnb. Your platform at first would barely have registered guests and hosts... It would be practically impossible for you to overshadow them .

This makes Airbnb's barriers to entry very powerful, its business protected from potential Cambodia Phone Number Data  competitors, and therefore a very valuable company . 4. The chicken and egg challenge The opposite is not having users aimed at little value When you build a platform from scratch, this is the biggest hurdle you have to overcome . At the beginning you don't have users anywhere, so you don't add value.  of not providing value and not attracting users, it will be very difficult for you to get out of there .






The chicken and egg challenge is a huge challenge , and the problem is that most entrepreneurs do not take it into account when they think about making their business idea a reality. It is true that if you manage to overcome it and become a large platform with many registered users, this challenge benefits you , since it creates barriers to entry and means you have fewer competitors in the market. However, if you undertake it without taking it into account, overcoming it will be extremely difficult for you .