“Startups have been multiplying like rabbits over the past three years. Due to the added competition, many startups are beginning to narrow their focus to a much smaller demographic…. Becoming a master of any of the smaller niches has many great advantages, such as less competition, loyal readership, and better focus. All marketers exploit a basic positioning principle that states that it is better to be first than to be better. It is clearly too late to be the first social network, or bookmarking service, or video sharing startup. Consequently, the Web 2.0 era demands that startups put intense focus on their niche regardless of the smaller demographics.”

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