Yesterday’s TechCrunch post titled Why We Invested in Groupon: The Power of Data mentioned something that isn’t talked about often enough in startup circles: winner take most markets. Winner take all markets, like eBay with online auctions and Microsoft with operating systems (for many years), are much more commonly talked about.
What are some winner take most markets? Here are a few ideas:
- Groupon in the local deals market (there are tons of smaller competitors but I’m sure Groupon’s revenues are more than all the others combined)
- Wal Mart in the local goods market (Target and other brands do well but Wal Mart takes most of the revenue)
- Constant Contact in the small business email marketing market (even though iContact and MailChimp continue to do great and will probably change this one day)
Winner take most markets, also known as one company having the majority of revenue in a market, is much more common than winner take all. Entrepreneurs should be talking about winner take most markets more frequently than winner take all.
What else? What are some other winner take most markets?
David Cummings on Startups 
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