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Big Players may hurt Indian startups

August 8, 2007 · Posted in Entrepreneurship 

If you follow technology news in the Western hemisphere, you’ll know that the survival of traditional media properties has been threatened by the emergence of new media - blogs, online classifieds, niche social networks etc. Startups are more innovative and disruptive when it comes to technology as compared to the biggies. Acquisition is the preferred route for the biggies to acquire the disruptive innovation, as opposed to reinventing the wheel.

However, in India, the scenario is a bit contrary. Traditional media powerhouses have latched on to technology pretty fast. They have observed (in fact are observing) first hand the demise of traditional media in the West. This gives them ample time and opportunity to observe, learn, chalk out a strategy and act upon this plan. Briefly put, they get a chance to learn from the mistakes of their counterparts in the US. Considering that they have been aggressive with their online plans, it leaves a very little chance for other standalone, viable businesses to emerge in these domains.

The same holds true for consumer Internet too. Biggies like Reliance, Rediff etc. are witnessing the impact of disruptive innovation like YouTube, FaceBook etc in the US. And of course, that has a role to play in their decisions to launch Rediff iShare, Reliance BigAdda etc. Entrepreneurs and biggies, both are exposed to the same innovative ideas from the US. Difference is that the biggies have ample resources at their disposal to act fast. I agree - startups tend to be more innovative and passionate as compared to the big players. But even then, it would be a bit difficult to match the Rs 5 crore marketing budget of Reliance.

What do you think ?


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Comments

3 Responses to “Big Players may hurt Indian startups”

  1. game in on August 8th, 2007 12:42 am

    i have noticed in silicon valley that a startup with little funds can become disruptive if they give enough reasons for the people to use their service offerings and copy cat companies like bigadda even if they have tons of money end up burning money by the end of the show–what ever innovation bigadda is talking(in media consumption platform or mobile technology–have already been implemented by companies in US or India)

  2. Tulika on August 9th, 2007 12:29 am

    I agree with game in. Bigger companies normally tend to copy existing ideas and don’t make much effort to come up with new ideas. Their marketing budget does put them at a huge advantage. But, if the product built by a startup is great nothing can stop it from going viral, not even the lack of a huge marketing budget.

  3. Rajiv on August 10th, 2007 3:23 pm

    nice theory. maybe that explains why there is no goog or msft from india!