A strong antagonist makes a strong protagonist. Computer users wouldn't support the open source movement so enthusiastically if Microsoft did not exist. Genghis Khan, the prolific leader who conquered the world, learned early on that by determining a common enemy he could unite the divided Mongol tribes and unleash a force unheard of. Similarly, if it were not for IBM back in the 80's, Steve Jobs would've never been able to build a cult around Apple. Strategy, therefore, is not just the art of planning the line of attack; it is also choosing whom to fight.
Some smart entrepreneurs tend to use their comeptition to validate their own product. While the article is great (I mean it), it should be noted that it is not always bad to have competition.
I really like how he explains the lack of open APIs in terms of giving your competitors, as opposed to your users, a chance to fill in gaps in your service.
I can't say I have much experience with his advice on partnerships in not strategic areas. How would a startup best spot a partnership with potential to go sour as he describes?
re: APIs. dBASE is the classic example of how to utilize this (and how to ruin it later).
"Ed Esber, CEO of one-time database giant Ashton-Tate and makers of dBASE, became the target of such enmity from the dBASE development community. Esber owed his fortune to the developers of third-party dBASE products who took his usability-deficient product and created applications that people could actually operate. This didn't stop him embarking on an RIAA-style litigation campaign. At a Software Publish Association conference, Esber declared to a group of dBASE developers "Make my day!" while threatening to sue anybody who dared build a dBASE-compatible product."
There was a time when there were dozens and dozens of companies who primarily added functionality to Ashton Tate's product, rather than competing with Ashton Tate.
Some smart entrepreneurs tend to use their comeptition to validate their own product. While the article is great (I mean it), it should be noted that it is not always bad to have competition.