Making money with Web 2.0 Part 2

Follow up from my previous post. If a Web 2.0 startup is so easy (only requires good idea, good business model and good tech skills), more people would be able to come up with great ideas and sell it. As long as there is one more better, stronger and prettier product out there that wins your product, the startup will not be too successful. This would pose as a risk as replication of web 2.0 technology is easy.

For any business to be successful, competitive advantage is important and the ease of web 2.0 development breaks the economic theory of competition - Barriers to entry. Unless you can stop / prevent others from developing a similar idea and at the same time build up such a large user base that even if the competitor joins the market, it would lose out due to the sheer amount of users on your product, it would be hard to gain any levels of competitive advantage.