photo credit: Mzelle Biscotte

Have you ever wondered why Startup businesses flourish despite the presence of Google, Microsoft, Apple and other industry giants?

A straightforward answer to the above question is presence of favorable conditions for Startups to continuously innovate. It is innovation which keeps them ahead of competition.
It is true that the Industry giants such as Google, Microsoft, and Apple invest millions in creating R&D groups but they are burdened by their success when it comes to innovation. On the other hand Startups have nothing to lose and everything to gain! Startups also benefit from being closer to customer needs and making changes according to customer feedback, which becomes impossible for big players of the industry.

Web 2.0 demands that startups focus on innovation and on creating a niche regardless of the smaller demographics. That is where the moolah comes from! This reminds me of a very common say “Great things come in small packages”. Have a closer look at the subject: http://onstartups.com/tabid/3339/bid/874/Why-Startups-Can-Innovate-Better-Than-Microsoft-Apple-and-IBM.aspx

So, my advice to startups is this:  Play to your strengths.  Since you have the ability to stay extremely close to the customer and change based on market response – you should focus as much as possible on both.  Innovation is not just important for startups, it is essential