February 28, 2007

Exit Strategies for Startups

What kind of a webapp can lure Yahoo into buying it? Here, We focus on Google/Yahoo to provide an exit strategy for web startups.

Analyze what Google offers, and create a service/product that rivals any of Google's product line-up. There is a huge market for products that compete against Google. Of-course, you will at once get into Yahoo's good books. But then, survival of your product becomes tough when there is no buy-out, and you stand against a big-shot like Google.

Another strategy is to create a complementary service/product that adds incredible value to the existing products of Yahoo/Google. Your product should be able to capture a substantial market share of the internet browser community. Example, Google Docs have equivalents of MS-Word & Excel, but no Powerpoint, etc... Similarly, Yahoo has every kind of search engine except Blog-search. Try to fill-in the gaps of the Big-shots.

Finally, A total innovative approach that generates a huge user-base will be a likely candidate too. Further, it becomes easier to capture the market share as there are no competitors for innovative products.

But think...! May be you don't have to exit. If your product can make enough revenue to make you happy at end of the day, there is no reason to exit. Challenge your competitors, enhance your product features, move on with your product line-up...

3 Comments:

Vivek Garg said...

i couldnt agree more. !!!

There is no alternative to building the right product. eveything will follow.

Kartik Trivedi said...

Hey this is in no accordance to your current post. But I am waiting ofr your Holi post after you Mahashivratri post.

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